O2Micro Reports Second Quarter Financial Results
GEORGE TOWN, Grand Cayman, Aug. 3, 2011 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM) reported its financial results today for the second quarter of fiscal 2011, ending June 30, 2011.
Financial Highlights for the Second Quarter ending June 30, 2011:
O2Micro International Limited reported second quarter 2011 revenue of $32.5 million. This was up 5% from the first quarter of 2011. The corresponding gross margins were 57% and 60% in the recent and prior quarters, respectively. Total GAAP operating expense, inclusive of stock-based compensation, was $15.6 million in the second quarter of 2011. This was up slightly from $15.2 million in the first quarter of 2011 when the company recorded a one-time benefit of $850,000 for litigation income. On a GAAP basis, the operating margin was 9% in Q2 2011 and 11% in Q1 2011. Pretax income from continuing operations was $3.2 million in Q2 2011 and $3.5 million in Q1 2011.
GAAP net income was $3.0 million in the second quarter of 2011. This was similar to GAAP net income of $3.1 million that was recorded in the prior quarter. GAAP net income per fully diluted ADS was $0.09 in both Q2 2011 and Q1 2011.
Financial Highlights for the Six Months ending June 30, 2011:
O2Micro International Limited reported revenue of $63.6 million for the six months ending June 30, 2011. This was down 14% from $73.8 million in the comparable six months of 2010. The gross margins were 58% and 62% during the corresponding periods of 2011 and 2010, respectively. GAAP operating expenses were $30.9 million and $31.0 million in the first half of 2011 and 2010, respectively. The respective GAAP operating margins for the comparable periods were 10% and 20%. Pretax income from operations was $6.8 million in the first half of 2011 and $15.0 million in the first half of 2010. GAAP net income was $6.1 million in 1H 2011 and $11.2 million in 1H 2010. The GAAP net income per fully diluted ADS was $0.18 in the first six months of 2011 and $0.31 in the corresponding half 2010.
The company ended the second quarter of 2011 with $114.9 million in unrestricted cash and short-term investments or $3.43 per outstanding ADS. The accounts receivable balance was $14.9 million and represented 40 days sales outstanding at the end of Q2 2011. Inventory was $11.7 million or 77 days and turned over 4.7 times during Q2 2011. As of June 30, 2011, the company had $129.0 million in working capital and the book value was $183.2 million, or $5.47 per outstanding ADS.
As of June 30, 2011, O2Micro International Limited counted 700 employees, including 397 engineers.
Sterling Du, Chairman and CEO, commented, "We are encouraged by the uptake of our DC/DC and charger products and the increasing LED driver penetration into general lighting applications at a time when the market for our LCD driver products remains soft," Mr. Du continued, "This progress is important to our long-term success in order to extend our business beyond our core backlighting market."
Conference Call: O2Micro will hold its second quarter conference call on August 3, 2011 at 7:00 a.m. PDT, 10:00 a.m. EDT. You may participate using the following dial-in information.
In the US and CANADA: 800-723-6498, passcode # 4459801
INTERNATIONAL participants: 785-830-7989, passcode # 4459801
A replay of the call will be available by phone for one week following the live call. The replay can be accessed using the following dial-in information.
In the US and CANADA: 888-203-1112, passcode # 4459801
INTERNATIONAL participants: 719-457-0820, passcode # 4459801
A live simulcast will also be available on the company website at www.o2micro.com, and an online replay will be available on the company's website for one week.
Founded in April 1995, O2Micro develops and markets innovative power management and e-commerce components for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, and SmartCardBus®.
O2Micro International maintains an extensive portfolio of intellectual property with 16,692 patent claims granted, and over 18,000 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.
O2Micro, the O2Micro logo, SmartCardBus, and combinations thereof are registered trademarks of O2Micro. All other trademarks or registered trademarks are the property of their respective owners.
The O2Micro International Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6567
Statements made in this release that are not historical, including statements regarding O2Micro's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Factors that could cause actual results to differ materially include risks and uncertainties such as reduced demand for products of electronic equipment manufacturers which include O2Micro's products due to adverse economic conditions in general or specifically affecting O2Micro's markets, technical difficulties and delays in the developments process, and errors in the products. You are also referred to the Form F-1 in connection with the company's initial public offering in August 2000, Form F-3 in connection with the company's public offering in November 2001, and the annual reports on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The company assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
|O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
(In Thousand U.S. Dollars, Except Per Share Amounts)
|Three Months Ended |
|Six Months Ended |
|NET SALES||$ 32,495||$ 39,435||$ 63,571||$ 73,827|
|COST OF SALES||13,897||15,068||26,431||28,342|
|OPERATING EXPENSES (INCOME)|
|Research and development (1)||8,177||7,755||16,594||15,186|
|Selling, general and administrative (1)||7,467||7,893||15,119||15,786|
|Total Operating Expenses||15,644||15,648||30,863||30,972|
|INCOME FROM OPERATIONS||2,954||8,719||6,277||14,513|
|Foreign exchange gain (loss) — net||(141)||5||(200)||9|
|Other — net||131||3||134||(27)|
|Total Non-operating Income||282||235||497||463|
INCOME FROM CONTINUING OPERATIONS BEFORE|
|INCOME TAX EXPENSE||304||454||663||822|
|NET INCOME FROM CONTINUING OPERATIONS||2,932||8,500||6,111||14,154|
|LOSS (GAIN) FROM DISCONTINUED OPERATIONS, NET OF TAX (1)||(29)||1,444||4||3,004|
|OTHER COMPREHENSIVE INCOME|
|Foreign currency translation adjustments||852||4||1,075||116|
|Unrealized gain (loss) on available-for-sale securities||(811)||(530)||(367)||1,254|
|Unrealized pension gain||4||1||8||3|
|Total Other Comprehensive Income (Loss)||45||(525)||716||1,373|
|COMPREHENSIVE INCOME||$ 3,006||$ 6,531||$ 6,823||$ 12,523|
|BASIC EARNINGS (LOSS) PER ADS|
|Continuing operations||$ 0.09||$ 0.25||$ 0.18||$ 0.41|
|$ 0.09||$ 0.21||$ 0.18||$ 0.32|
|DILUTED EARNINGS (LOSS) PER ADS|
|Continuing operations||$ 0.09||$ 0.24||$ 0.18||$ 0.40|
|$ 0.09||$ 0.20||$ 0.18||$ 0.31|
|ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION:|
|Basic (in thousands)||33,275||33,920||33,392||34,745|
|Diluted (in thousands)||34,114||34,883||34,342||35,677|
|(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:|
|Research and development||$ 407||$ 222||$ 740||$ 475|
|Selling, general and administrative||$ 543||$ 730||$ 1,304||$ 1,382|
|Discontinued operations||$ --||$ 16||$ --||$ 38|
|O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES|
CONSOLIDATED BALANCE SHEETS
(In Thousand U.S. Dollars, Except Share Amounts)
|June 30, |
|December 31, |
|Cash and cash equivalents||$ 28,509||$ 42,277|
|Accounts receivable — net||14,906||13,239|
|Prepaid expenses and other current assets||1,939||2,434|
|Total Current Assets||143,583||140,923|
|PROPERTY AND EQUIPMENT — NET||28,978||29,739|
|Total Other Assets||5,937||6,296|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Notes and accounts payable||$ 7,039||$ 8,299|
|Income tax payable||544||494|
|Accrued expenses and other current liabilities||7,023||8,031|
|Total Current Liabilities||14,606||16,824|
|OTHER LONG-TERM LIABILITIES|
|Accrued pension liabilities||646||679|
|Long-term income tax liabilities||241||302|
|Total Other Long-Term Liabilities||1,016||1,110|
|COMMITMENTS AND CONTINGENCIES|
|Preference shares at $0.00002 par value per share|
|Authorized — 250,000,000 shares||--||--|
|Ordinary shares at $0.00002 par value per share|
|Authorized — 4,750,000,000 shares|
Issued — 1,674,808,500 and 1,675,021,100 shares as of June 30, 2011 |
and December 31, 2010, respectively
|Additional paid-in capital||136,577||135,703|
|Accumulated other comprehensive income||8,318||7,602|
Treasury stock — 21,161,550 and 5,000,000 shares as of June 30, 2011 |
and December 31, 2010,respectively
|Total Shareholders' Equity||183,198||179,700|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$198,820||$197,634|
CONTACT: Gary E. Abbott Director of Investor Relations, O2Micro Phone: 408.987.5920, x8888 Email: email@example.com