O2Micro Reports Third Quarter Financial Results
November 02 2011 - 8:00AM
O2Micro® International Limited (Nasdaq:OIIM) reported its financial
results today for the third quarter of fiscal 2011, ending
September 30, 2011.
Financial Highlights for the Third Quarter ending
September 30, 2011:
O2Micro International Limited reported revenue of $32.0 million
for the third quarter of 2011. Revenue was down 1% from the prior
Q2 period. The gross margin was 55.5% in Q3 2011 and it was 175
basis points lower than Q2 2011. GAAP operating expenses rose from
$15.6 million in Q2 2011 to $16.5 million in Q3 2011. The
corresponding GAAP operating margins for the respective quarters
were 9% and 4%. These results from operations yielded GAAP net
income that declined from $3.0 million in Q2 2011 to $1.4 million
in Q3 2011. The corresponding GAAP net income per fully diluted ADS
was $0.09 and $0.04 for the respective Q2 and Q3 2011 periods.
Financial Highlights for the Nine Months ending
September 30, 2011:
O2Micro International Limited produced revenue of $95.6 million
for the nine months ending September 30, 2011. Revenue was down 11%
from the comparable nine months of 2010. The gross margin was 57.4%
for the first nine months of 2011 and 61.7% for the corresponding
period of 2010. GAAP operating expenses were $47.4 million during
the first nine months of 2011 and $46.4 million through the first
nine months of 2010. Corresponding GAAP operating margins were 8%
and 19%, respectively. The GAAP net income was $7.5 million during
the first nine months of 2011 and $12.8 million through the first
nine months of 2010. Corresponding net income per fully diluted ADS
was $0.22 and $0.36, respectively.
Supplementary Data:
The company ended the third quarter of 2011 with $119.1 million
in unrestricted cash and short-term investments or $3.60 per
outstanding ADS. The accounts receivable balance was $14.0 million
and represented 41 days sales outstanding at the end of Q3 2011.
Inventory was $9.3 million or 66 days and turned over 5.5 times
during Q3 2011. As of September 30, 2011, the company had $130.8
million in working capital and the book value was $185.4 million,
or $5.60 per outstanding ADS.
As of September 30, 2011, O2Micro International Limited counted
765 employees, including 422 engineers.
Management Commentary:
Sterling Du, Chairman and CEO, commented, "We are successfully
diversifying our business. We continue to be a leader in
backlighting, our DC/DC products are gaining market acceptance, and
our investment in general lighting is showing great promise."
Conference Call: O2Micro will hold its third
quarter conference call today, November 2, 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: |
800-227-9428, passcode # 9100437 |
INTERNATIONAL participants: |
785-830-1925, passcode # 9100437 |
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 # 9100437 |
INTERNATIONAL participants: |
719-457-0820, passcode # 9100437 |
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.
About O2Micro
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, and Power Management.
O2Micro International maintains an extensive portfolio of
intellectual property with 17,633 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.
The O2Micro International Limited logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6567
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'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
development 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 |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
NET SALES |
$32,046 |
$33,775 |
$95,617 |
$107,602 |
|
|
|
|
|
COST OF SALES |
14,265 |
12,857 |
40,696 |
41,199 |
|
|
|
|
|
GROSS PROFIT |
17,781 |
20,918 |
54,921 |
66,403 |
|
|
|
|
|
OPERATING EXPENSES (INCOME) |
|
|
|
|
Research and development (1) |
8,452 |
7,734 |
25,046 |
22,920 |
Selling, general and administrative
(1) |
8,094 |
7,740 |
23,213 |
23,526 |
Litigation income |
-- |
-- |
(850) |
-- |
Total Operating Expenses |
16,546 |
15,474 |
47,409 |
46,446 |
|
|
|
|
|
INCOME FROM OPERATIONS |
1,235 |
5,444 |
7,512 |
19,957 |
|
|
|
|
|
NON-OPERATING INCOME |
|
|
|
|
Interest income |
320 |
241 |
883 |
722 |
Foreign exchange gain (loss) – net |
207 |
(184) |
7 |
(175) |
Other – net |
(12) |
16 |
122 |
(11) |
Total Non-operating Income |
515 |
73 |
1,012 |
536 |
|
|
|
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE |
1,750 |
5,517 |
8,524 |
20,493 |
INCOME TAX |
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE |
279 |
449 |
942 |
1,271 |
|
|
|
|
|
NET INCOME FROM CONTINUING OPERATIONS |
1,471 |
5,068 |
7,582 |
19,222 |
|
|
|
|
|
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX
(1) |
36 |
3,380 |
40 |
6,384 |
|
|
|
|
|
NET INCOME |
1,435 |
1,688 |
7,542 |
12,838 |
|
|
|
|
|
OTHER COMPREHENSIVE INCOME |
|
|
|
|
Foreign currency translation
adjustments |
(449) |
1,063 |
626 |
1,179 |
Unrealized gain on available-for-sale
securities |
622 |
740 |
255 |
1,994 |
Unrealized pension gain |
4 |
2 |
12 |
5 |
Total Other Comprehensive Income |
177 |
1,805 |
893 |
3,178 |
|
|
|
|
|
COMPREHENSIVE INCOME |
$1,612 |
$3,493 |
$8,435 |
$16,016 |
|
|
|
|
|
BASIC EARNINGS (LOSS) PER ADS |
|
|
|
|
Continuing operations |
$0.04 |
$0.15 |
$0.23 |
$0.56 |
Discontinued operations |
-- |
(0.10) |
-- |
(0.19) |
|
$0.04 |
$0.05 |
$0.23 |
$0.37 |
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER ADS |
|
|
|
|
Continuing operations |
$0.04 |
$0.15 |
$0.22 |
$0.54 |
Discontinued operations |
-- |
(0.10) |
-- |
(0.18) |
|
$0.04 |
$0.05 |
$0.22 |
$0.36 |
|
|
|
|
|
ADS UNITS USED IN EARNINGS (LOSS) PER ADS
CALCULATION: |
|
|
|
|
Basic (in thousands) |
33,070 |
33,576 |
33,285 |
34,355 |
Diluted (in thousands) |
33,678 |
34,491 |
34,121 |
35,282 |
|
|
|
|
|
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE
AS FOLLOWS: |
|
|
|
|
Research and development |
$236 |
$232 |
$976 |
$707 |
Selling, general and administrative |
$614 |
$798 |
$1,918 |
$2,180 |
Discontinued operations |
$ -- |
$15 |
$ -- |
$53 |
|
|
O2MICRO INTERNATIONAL
LIMITED AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(In Thousand U.S. Dollars,
Except Share Amounts) |
|
|
|
|
September 30, |
December 31, |
|
2011 |
2010 |
ASSETS |
(Unaudited) |
(Audited) |
|
|
|
CURRENT ASSETS |
|
|
Cash and cash equivalents |
$29,805 |
$42,277 |
Restricted cash |
168 |
562 |
Short-term investments |
89,330 |
68,728 |
Accounts receivable – net |
14,036 |
13,239 |
Inventories |
9,275 |
13,683 |
Prepaid expenses and other current
assets |
2,040 |
2,434 |
Total Current Assets |
144,654 |
140,923 |
|
|
|
LONG-TERM INVESTMENTS |
20,948 |
20,676 |
|
|
|
PROPERTY AND EQUIPMENT – NET |
28,271 |
29,739 |
|
|
|
OTHER ASSETS |
|
|
Intangible assets |
1,648 |
1,936 |
Other Assets |
4,762 |
4,360 |
Total Other Assets |
6,410 |
6,296 |
|
|
|
TOTAL ASSETS |
$200,283 |
$197,634 |
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
Notes and accounts payable |
$5,855 |
$8,299 |
Income tax payable |
583 |
494 |
Accrued expenses and other current
liabilities |
7,401 |
8,031 |
Total Current Liabilities |
13,839 |
16,824 |
|
|
|
OTHER LONG-TERM LIABILITIES |
|
|
Accrued pension liabilities |
592 |
679 |
Long-term income tax liabilities |
302 |
302 |
Other liabilities |
129 |
129 |
Total Other Long-Term Liabilities |
1,023 |
1,110 |
|
|
|
Total Liabilities |
14,862 |
17,934 |
|
|
|
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 – 1,655,496,600 and
1,675,021,100 shares as of September 30, 2011 and December 31,
2010, respectively |
33 |
34 |
Additional paid-in capital |
136,018 |
135,703 |
Retained earnings |
41,282 |
36,937 |
Accumulated other comprehensive
income |
8,495 |
7,602 |
Treasury stock – 4,282,500 and 5,000,000
shares as of September 30, 2011 and December 31, |
(407) |
(576) |
2010,respectively |
|
|
Total Shareholders' Equity |
185,421 |
179,700 |
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$200,283 |
$197,634 |
CONTACT: Gary E. Abbott
Director of Investor Relations, O2Micro
Phone: 408.987.5920, x8888
Email: gary.abbott@o2micro.com
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