Operational Highlights:

  • 2020 Q4 revenue was $23.2 million, and within the guidance provided on October 30th, 2020.
  • Revenue increased 30% compared to the same quarter in 2019.
  • GAAP net income was $0.14 per fully diluted ADS, up from $0.07 per ADS, for the same quarter a year ago.
  • O2Micro expects first quarter 2021 revenue to be in the range of $22.3 million to $24.6 million. This is an increase of 43% to 58% when compared to the first quarter of 2020.

O2Micro® International Limited (NASDAQ: OIIM)(“O2Micro), a global leader in the design, development and marketing of high-performance integrated circuits and solutions, reported its financial results today for the Fourth Quarter ending December 31st, 2020.

Financial Highlights for the Fourth Quarter ending December 31st, 2020: O2Micro reported fourth quarter 2020 revenue of $23.2 million. Revenue was up 30% from the same quarter in the previous year. The gross margin in the fourth quarter of 2020 was 51.3%, which was down from 56.7% in the same quarter of 2019. During the fourth quarter of 2020, the company recorded total GAAP operating expenses of $8.3 million and was down from $9.2 million in the fourth quarter of 2019. The GAAP operating margins for the fourth quarter of 2020 was 15.7 % compared to 5.2% in the fourth quarter of 2019. The Company reported 2020 Q4 GAAP net income of $4.4 million, or $0.14 per fully diluted ADS, compared to a GAAP net income of $1.8 million, or $0.07 per ADS in the comparable quarter of 2019.

Supplementary Data: The Company ended the fourth quarter of 2020 with $47.8 million in unrestricted cash and short-term investments or $1.76 per outstanding ADS, along with 303 employees worldwide of which 171 are engineers.

Management Commentary: "O2Micro continued our growth momentum into Q4 with a 30% revenue increase over the same quarter in 2019, a net income of $4.4 million and an 18.8% profit margin (GAAP), compared to net income of $1.8 million and 10% profit margin in the fourth quarter of 2019. Strong rising demand for backlighting products for monitors, televisions, notebooks, and tablets continued their upward trend through Q4, while revenue from our battery products also grew strongly across all sectors as our proprietary mixed signal designs enriched cordless appliances, UPS, energy storage, transportation, and power tools. Strong overall market acceptance has resulted in additional Top Tier and OEM manufacturers choosing O2Micro Integrated circuits.” said Sterling Du, O2Micro’s Chairman and CEO. “These factors, along with continued management of operational costs, shows confidence that our business fundamentals are leading O2Micro into sustainable long-term profitability.”

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME follows conference call information below

Conference Call: O2Micro will hold its third quarter conference call on Friday February 5th, 2021, at 6:00AM. Pacific, 9:00AM Eastern. You may participate using the following dial-in information.

Conference Code: 5315627Participants, Int'l Toll: +1 323-289-6576Participants, US/CAN: 800-437-2398

The Call-in Audio Replay will be available following the call from February 5th, 2021, 12:00PM Eastern Time (US & Canada) through February 19th, 2021, 12:00PM Eastern Time (US & Canada)https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6Vklla3JjZi9iQ2dWSzBBRG14aDdzUk81NFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlR5Q1VVNG9sVE9GOHVxRHl2eVFIMmlnPT0=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, and Automotive markets. Products include Backlighting, and Battery 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 (In Thousand U.S. Dollars, Except Per Share Amounts)

  Three Months Ended   Year Ended
  December 31,   December 31,
    2020       2019       2020       2019  
  (Unaudited)   (Unaudited)   (Audited)
OPERATING REVENUES $ 23,235     $ 17,861     $ 78,335     $ 60,928  
               
COST OF REVENUES   11,317       7,727       37,951       28,960  
               
GROSS PROFIT   11,918       10,134       40,384       31,968  
               
OPERATING EXPENSES              
Research and development (1)   3,881       4,382       17,119       19,065  
Selling, general and administrative (1)   4,385       4,828       17,742       19,286  
               
Total Operating Expenses   8,266       9,210       34,861       38,351  
               
INCOME (LOSS) FROM OPERATIONS   3,652       924       5,523       (6,383 )
               
NON-OPERATING INCOME              
Interest income   70       216       506       543  
Net gain (loss) recognized on long-term investments   133       245       (79 )     788  
Foreign exchange loss - net   (54 )     (79 )     (238 )     (162 )
Gain on sale of real estate   -       500       -       500  
Government grants   666       129       817       204  
Other - net   105       102       535       642  
Total Non-operating Income   920       1,113       1,541       2,515  
               
INCOME (LOSS) BEFORE INCOME TAX   4,572       2,037       7,064       (3,868 )
               
INCOME TAX EXPENSE   215       250       937       1,171  
               
NET INCOME (LOSS)   4,357       1,787       6,127       (5,039 )
               
OTHER COMPREHENSIVE INCOME (LOSS)              
Foreign currency translation adjustments   588       356       1,082       (85 )
Unrealized pension gain   3       61       4       65  
Total Other Comprehensive Income (Loss)   591       417       1,086       (20 )
               
COMPREHENSIVE INCOME (LOSS) $ 4,948     $ 2,204     $ 7,213     $ (5,059 )
               
EARNINGS (LOSS) PER ADS              
Basic $ 0.16     $ 0.07     $ 0.23     $ (0.19 )
Diluted $ 0.14     $ 0.07     $ 0.21     $ (0.19 )
               
ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION:            
Basic (in thousands)   27,161       26,347       26,978       26,321  
Diluted (in thousands)   30,664       27,095       28,724       26,321  
               
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:            
Research and development $ 80     $ 68     $ 293     $ 272  
Selling, general and administrative $ 284     $ 310     $ 1,121     $ 1,190  

O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In Thousand U.S. Dollars, Except Share Amounts)

  December 31,   December 31,
    2020       2019  
ASSETS (Unaudited)   (Audited)
       
CURRENT ASSETS      
Cash and cash equivalents $ 18,752     $ 10,696  
Restricted cash   37       35  
Short-term investments   29,054       35,693  
Accounts receivable - net   16,430       10,335  
Inventories   12,588       8,796  
Prepaid expenses and other current assets   2,548       1,295  
Total Current Assets   79,409       66,850  
               
LONG-TERM INVESTMENTS   992       4,172  
       
PROPERTY AND EQUIPMENT - NET   17,266       15,551  
       
OTHER ASSETS   4,369       2,426  
       
TOTAL ASSETS $ 102,036     $ 88,999  
       
LIABILITIES AND SHAREHOLDERS’ EQUITY      
       
CURRENT LIABILITIES      
Notes and accounts payable $ 7,995     $ 4,867  
Income tax payable   272       611  
Lease liabilities   865       827  
Accrued expenses and other current liabilities   5,934       4,839  
Total Current Liabilities   15,066       11,144  
       
OTHER LONG-TERM LIABILITIES      
Accrued pension liabilities   177       214  
Deferred income tax liabilities   545       589  
Lease liabilities   2,091       1,932  
Other liabilities   68       65  
Total Other Long-Term Liabilities   2,881       2,800  
       
Total Liabilities   17,947       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 December 31, 2020 and December 31, 2019      
Outstanding - 1,361,886,000 and 1,314,798,600 shares as of December 31, 2020 and      
December 31, 2019, respectively   33       33  
Additional paid-in capital   143,422       143,484  
Accumulated deficits   (46,744 )     (51,773 )
Accumulated other comprehensive income   5,740       4,654  
Treasury stock - 307,150,600 and 354,238,000 shares as of December 31, 2020 and      
December 31, 2019, respectively   (18,362 )     (21,343 )
Total Shareholders’ Equity   84,089       75,055  
       
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 102,036     $ 88,999  

  

O2Micro
Daniel Meyberg
Investor Relations
ir@o2micro.com

Gregory Communications FCA
Joe Hassett
joeh@gregoryfca.com

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