Operational and Strategic Highlights:
- Q1 2020 revenue was 15.6 Million, up 22.1% from the same
quarter in the previous year and down 12.8% sequentially and within
the range of guidance provided on February 6th, 2020.
- GAAP net loss per fully diluted ADS in the first quarter of
2020 was 6 cents, with non-GAAP net loss of one fifth of one cent
per fully diluted ADS.
- O2Micro expects the Q2 2020 revenue to be $16.5 million to
$17.5 million compared to $14.3 million in the comparable quarter
of the previous year.
O2Micro® International Limited (NASDAQ: OIIM), a global leader
in the design, development and marketing of high-performance
integrated circuits and solutions, reported its financial results
today for the first quarter ending March 31, 2020.
Financial Highlights for the First
Quarter ending March 31, 2020: O2Micro
International Limited (the “Company”) reported Q1 2020 revenue of
$15.6 million. Revenue was down 12.8% sequentially, and up 22.1%
from the same quarter in the previous year. The gross margin in the
first quarter of 2020 was 51.9%, which was down from 56.7% in the
prior quarter, and up from 50.5% in the first quarter of 2019.
During the first quarter of 2020, the Company recorded total GAAP
operating expenses of $8.7 million, compared to $9.2 million in the
fourth quarter of 2019, and $10.1 million in the year-ago Q1
period. The GAAP operating margins for the first quarter of 2020,
the fourth quarter of 2019, and first quarter of 2019 were (3.7%),
5.2%, and (28.4%), respectively.
GAAP net loss was $1.5 million in Q1 2020. This compares to a
GAAP net income of $1.8 million in the fourth quarter of 2019 and a
GAAP net loss of $3.8 million in Q1 2019. GAAP net loss per fully
diluted ADS was $0.06 in Q1 2020. This compares to a GAAP net
income per fully diluted ADS of $0.07 in Q4 2019 and a GAAP net
loss per fully diluted ADS of $0.15 in Q1 2019.
Supplementary Data: The Company ended the first
quarter of 2020 with $44.7 million in unrestricted cash and
short-term investments or $1.67 per outstanding ADS. The accounts
receivable balance was $11.0 million and represented 62 days sales
outstanding at the end of Q1 2020. Inventory was $9.9 million or
112 days and turned over 3.2 times during Q1 2020. As of March 31,
2020, the Company had $55.4 million in working capital and the book
value was $73.6 million, or $2.74 per outstanding ADS. As of March
31, 2020, O2Micro International Limited had a total of 370
employees worldwide, including 235 engineers.
Management Commentary: “Our growth driver,
4k/8k HRD TV and high end 4k monitor experienced significant growth
during the Q1, 2020, in part due to strong demand of TV’s and
high-end monitors supporting work from home policies. Battery
products were also in high demand as more people stayed home
driving the demand for many types of cordless power and garden
tools.” said Sterling Du, O2Micro’s Chairman and CEO. “We are at
the first stage of a globally dynamic and difficult to assess
impact of COVID-19, yet we are optimistic that our business
fundamentals are leading O2Micro back to long term
profitability.”
Conference Call: O2Micro will hold its first
quarter conference call today, May 8th, at 6:00AM. Pacific, 9:00AM
Eastern. You may participate using the following dial-in
information.
Conference ID: 5796648Participants,
Int'l Toll: +1 334-323-0501Participants, US/CAN
Toll Free: 800-353-6461 The Call-in Audio Replay will be
available following the call from May 8th 12:00PM Eastern Time (US
& Canada) through May 15th 12:00PM Eastern Time (US &
Canada)https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6VklkbExaN1YwZ1RDYzVtamRWSTM0V250NFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlQrL1ozelpVRjZ1SEM5enpITXovcWdRPT0=A
live webcast will also be available on the Company's website at
http://ir.o2micro.com, and an online replay will be available on
the website for one week.
About O2Micro:Founded in April 1995, O2Micro
develops and markets innovative power management components for the
Computer, Consumer, Industrial, Automotive and Communications
markets. Products include LED General Lighting, Backlighting,
Battery Management, and Power Management. 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, and combinations thereof are
registered trademarks of O2Micro. All other trademarks or
registered trademarks are the property of their respective
owners.
Statements made in this release that are not historical,
including statements regarding O2Micro or its 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 and other Federal
Securities Laws. Such statements involve risks, speculation and
uncertainties that may cause actual results to differ materially
from those set forth in these statements or from management's
current views and expectations. Risks and uncertainties in this
release may include, without limitation, any one or combination of
the following: the effect of competitive and economic factors; real
property value fluctuations and market demand; legal changes in any
relevant rules and regulations pertaining to O2Micro's business;
changes in technology and industry standards, and O2Micro's
reaction to those factors; consumer and business buying decisions
with respect to our customers' products incorporating O2Micro's
products; continued competitive pressures in the marketplace; the
ability of O2Micro to deliver to the marketplace, and stimulate
customer demand therein, for new products and technological
innovations on a timely basis; the effect that product
introductions and transitions, changes in product pricing or mix,
and/or increases in component costs could have on O2Micro's gross
margins; the inventory risk associated with O2Micro's need to
order, or commit to order, product components and product capacity
in advance of forecast customer orders; the continued availability
of acceptable terms of certain components and services essential to
O2Micro's business which are currently obtained by the Company from
sole or limited sources; the effect that O2Micro's dependency on
manufacturing and logistics services provided by third parties may
have on the quality, quantity, availability or cost of products
manufactured or services rendered; risks associated with O2Micro's
international operations; the potential impact of a finding that
O2Micro has infringed on the intellectual property rights of
others, or that any third party may have infringed on O2Micro's
intellectual property that may negatively affect O2Micro's
business; O2Micro's legal classifications with governmental and
regulatory agencies; O2Micro's dependency on the performance of
distributors, carriers, independent sales representatives, and
other resellers of O2Micro's products; the effect that product and
service quality problems could have on O2Micro's sales ability and
operating profits; the ability of O2Micro to deliver its products
in a timely fashion to its customers, and the possible negative
ramifications if such is not possible; the continued service and
availability of key executives and employees; war, terrorism,
public health issues, natural disasters, and other circumstances
that could disrupt supply, delivery, or demand of products; and
unfavorable results of other legal proceedings. Actual results may
differ materially due to numerous risk factors. Such risk factors
are more fully enumerated in O2Micro's 20-F Annual Filings, Annual
Report(s), 6-K's, the Form F-1 filed in connection with the
Company's initial public offering in August 2000, information
posted on our website at www.o2micro.com, and other documents filed
with the SEC, NASDAQ or any other public agency from time to time.
The statements herein are based on dated information on the dates
mentioned herein, which is subject to change. O2Micro assumes no
obligation to update or revise the information provided on today,
or any other forward-looking information, whether as a result of
new information, future events or any other information that may
arise. This information only speaks to the respective dates
mentioned in said information.
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 |
| |
|
March 31, |
|
|
|
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
| OPERATING REVENUES |
$ |
15,581 |
|
$ |
12,763 |
|
| |
|
|
|
|
|
|
| COST OF REVENUES |
|
7,490 |
|
|
6,316 |
|
| |
|
|
|
|
|
|
| GROSS PROFIT |
|
8,091 |
|
|
6,447 |
|
| |
|
|
|
|
|
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
Research and development (1) |
|
4,141 |
|
|
5,110 |
|
|
Selling, general and administrative (1) |
|
4,521 |
|
|
4,956 |
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
8,662 |
|
|
10,066 |
|
| |
|
|
|
|
|
|
| LOSS FROM OPERATIONS |
|
(571 |
) |
|
(3,619 |
) |
| |
|
|
|
|
|
|
| NON-OPERATING (LOSS)
INCOME |
|
|
|
|
|
|
|
Interest income |
|
187 |
|
|
57 |
|
|
Net (loss) gain recognized on long-term investments |
|
(1,100 |
) |
|
15 |
|
|
Foreign exchange gain (loss) – net |
|
32 |
|
|
(141 |
) |
|
Other – net |
|
117 |
|
|
141 |
|
|
Total Non-operating (Loss) Income |
|
(764 |
) |
|
72 |
|
| |
|
|
|
|
|
|
| LOSS BEFORE INCOME TAX |
|
(1,335 |
) |
|
(3,547 |
) |
| |
|
|
|
|
|
|
| INCOME TAX EXPENSE |
|
205 |
|
|
299 |
|
| |
|
|
|
|
|
|
| NET LOSS |
|
(1,540 |
) |
|
(3,846 |
) |
| |
|
|
|
|
|
|
| OTHER COMPREHENSIVE (LOSS)
INCOME |
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
(246 |
) |
|
169 |
|
| |
|
|
|
|
|
|
|
Unrealized pension gain |
|
- |
|
|
1 |
|
|
Total Other Comprehensive (Loss) Income |
|
(246 |
) |
|
170 |
|
| |
|
|
|
|
|
|
| COMPREHENSIVE LOSS |
$ |
(1,786 |
) |
$ |
(3,676 |
) |
| |
|
|
|
|
|
|
| LOSS PER ADS |
|
|
|
|
|
|
|
Basic |
$ |
(0.06 |
) |
$ |
(0.15 |
) |
|
Diluted |
$ |
(0.06 |
) |
$ |
(0.15 |
) |
| |
|
|
|
|
|
|
| ADS UNITS USED IN LOSS PER ADS
CALCULATION: |
|
|
|
|
|
|
|
Basic (in thousands) |
|
26,720 |
|
|
26,294 |
|
|
Diluted (in thousands) |
|
26,720 |
|
|
26,294 |
|
| |
|
|
|
|
|
|
| (1) INCLUDES STOCK-BASED
COMPENSATION CHARGE AS FOLLOWS: |
|
|
|
|
|
|
|
Research and development |
$ |
80 |
|
$ |
63 |
|
|
Selling, general and administrative |
$ |
317 |
|
$ |
262 |
|
|
|
|
|
|
|
|
|
O2MICRO INTERNATIONAL LIMITED AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS(In Thousand U.S. Dollars, Except Share
Amounts)
| |
March 31, |
December 31, |
|
|
|
2020 |
|
|
2019 |
|
| ASSETS |
(Unaudited) |
(Audited) |
| |
|
|
| CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ |
16,108 |
|
$ |
10,696 |
|
|
Restricted cash |
|
35 |
|
|
35 |
|
|
Short-term investments |
|
28,595 |
|
|
35,693 |
|
|
Accounts receivable – net |
|
11,016 |
|
|
10,335 |
|
|
Inventories |
|
9,876 |
|
|
8,796 |
|
|
Prepaid expenses and other current assets |
|
1,361 |
|
|
1,295 |
|
|
Total Current Assets |
|
66,991 |
|
|
66,850 |
|
| |
|
|
| LONG-TERM INVESTMENTS |
|
3,020 |
|
|
4,172 |
|
| |
|
|
| PROPERTY AND EQUIPMENT – NET
(1) |
|
15,222 |
|
|
15,551 |
|
| |
|
|
| OTHER ASSETS |
|
2,662 |
|
|
2,426 |
|
| |
|
|
|
|
|
|
| TOTAL ASSETS |
$ |
87,895 |
|
$ |
88,999 |
|
| |
|
|
|
|
|
|
| LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
|
|
|
Notes and accounts payable |
$ |
6,596 |
|
$ |
4,867 |
|
|
Income tax payable |
|
702 |
|
|
611 |
|
|
Lease liabilities |
|
714 |
|
|
827 |
|
|
Accrued expenses and other current liabilities |
|
3,540 |
|
|
4,839 |
|
|
Total Current Liabilities |
|
11,552 |
|
|
11,144 |
|
| |
|
|
|
|
|
|
| OTHER LONG-TERM
LIABILITIES |
|
|
|
|
|
|
|
Accrued pension liabilities |
|
207 |
|
|
214 |
|
|
Deferred income tax liabilities |
|
651 |
|
|
589 |
|
|
Lease liabilities |
|
1,829 |
|
|
1,932 |
|
|
Other liabilities |
|
65 |
|
|
65 |
|
|
Total Other Long-Term Liabilities |
|
2,752 |
|
|
2,800 |
|
| |
|
|
|
|
|
|
| Total Liabilities |
|
14,304 |
|
|
13,944 |
|
| |
|
|
|
|
|
|
| COMMITMENTS AND
CONTINGENCIES |
|
|
| |
|
|
| SHAREHOLDERS’ EQUITY |
|
|
|
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 – 1,669,036,600 shares as of March 31, 2020 and December 31,
2019 Outstanding – 1,340,986,450 and 1,314,798,600 shares as of
March 31, 2020 and December 31, 2019, respectively |
|
33 |
|
|
33 |
|
|
Additional paid-in capital |
|
142,853 |
|
|
143,484 |
|
|
Accumulated deficits |
|
(54,087 |
) |
|
(51,773 |
) |
|
Accumulated other comprehensive income |
|
4,408 |
|
|
4,654 |
|
|
Treasury stock – 328,050,150 and 354,238,000 shares as of March 31,
2020 and December 31, 2019, respectively |
|
(19,616 |
) |
|
(21,343 |
) |
|
Total Shareholders’ Equity |
|
73,591 |
|
|
75,055 |
|
| |
|
|
|
|
|
|
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
87,895 |
|
$ |
88,999 |
|
(1) Property and equipment- net includes right-of-used assets
under operating lease of $2,510 as of March 31, 2020.
O2Micro
Daniel Meyberg
Investor Relations
ir@o2micro.com
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