Operational and Strategic Highlights:
- Q4 2019 revenue was up 7.7% from the same quarter in the
previous year and up 11.4% sequentially and within the range of
guidance provided on December 2nd, 2019.
- GAAP net income per fully diluted ADS in the fourth quarter of
2019 was 7 cents, with non-GAAP net income of 5 cents per fully
diluted ADS.
- O2Micro expects the Q1 2020 revenue to be $14.5 million to $16
million compared to $12.8 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 fourth quarter ending December 31, 2019.
Financial Highlights for the Fourth
Quarter ending December 31, 2019: O2Micro
International Limited (the “Company”) reported Q4 2019 revenue of
$17.9 million. Revenue was up 11.4 % sequentially, and up 7.7% from
the same quarter in the previous year. The gross margin in the
fourth quarter of 2019 was 56.7%, which was up from 51.4% in the
prior quarter, and up from 50.3 % in the fourth quarter of 2018.
During the fourth quarter of 2019, the Company recorded total GAAP
operating expenses of $ 9.2 million, compared to $9.4 million in
the third quarter of 2019, and $ 10.4 million in the year-ago Q4
period. The GAAP operating margins for the fourth quarter of 2019,
the third quarter of 2019, and fourth quarter of 2018 were 5.2 %,
(6.9 %), and (12.4 %), respectively.
GAAP net income was $1.8 million in Q4 2019. This compares to a
GAAP net loss of $200,000 in the third quarter of 2019 and a GAAP
net loss of $3.1 million in Q4 2018. GAAP net income per fully
diluted ADS was $0.07 in Q4 2019. This compares to a GAAP net loss
per fully diluted ADS of $0.01 in Q3 2019 and a GAAP net loss per
fully diluted ADS of $0.12 in Q4 2018.
Supplementary Data: The Company ended the
fourth quarter of 2019 with $46.4 million in unrestricted cash and
short-term investments or $1.76 per outstanding ADS. The accounts
receivable balance was $10.3 million and represented 57 days sales
outstanding at the end of Q4 2019. Inventory was $8.8 million or
108 days and turned over 3.3 times during Q4 2019. As of December
31, 2019, the Company had $ 55.7 million in working capital and the
book value was $ 75.1 million, or $2.85 per outstanding ADS. As of
December 31, 2019, O2Micro International Limited had a total of 378
employees worldwide, including 238 engineers.
Management Commentary: "Our primary growth
drivers continue to show promise and projected growth into 2020.
Our TV products continued their upward drive in Q4, and our battery
products experienced excellent growth driven by expanded use and
increased capacities of Li-Ion batteries with new and existing
customers supporting the automotive, power tools, IOT and household
appliance sectors. Our smartphone products see increasing design
wins and revenue expected to follow." said Sterling Du, O2Micro’s
Chairman and CEO. “We believe our solutions and design wins for
these product segments will provide for ongoing growth in a dynamic
market and lead O2Micro back to long term profitability.”
Conference Call: O2Micro will hold its fourth
quarter conference call today, February 6th, at 6:00AM. Pacific,
9:00AM Eastern. You may participate using the following dial-in
information.
Conference ID: 2629343Participants,
Int'l Toll: +1 334-323-0501Participants, US/CAN
Toll Free: 800-353-6461The Call-in Audio Replay will be
available from February 6th 2020 Eastern Time (US & Canada)
through February 13th 2020 12:00 Eastern Time (US &
Canada)https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6VklmZjJUZkwzRThwaUtJK0FsK2VXaXNCNFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlRtSSt6NTAraExzV2RScFB3QVRxOFJ3PT0=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 |
Year Ended |
| |
December 31, |
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
| |
(Unaudited) |
(Unaudited) |
(Audited) |
| NET SALES |
$ |
17,861 |
|
$ |
16,586 |
|
$ |
60,928 |
|
$ |
62,714 |
|
| |
|
|
|
|
| COST OF SALES |
|
7,727 |
|
|
8,243 |
|
|
28,960 |
|
|
30,741 |
|
| |
|
|
|
|
| GROSS PROFIT |
|
10,134 |
|
|
8,343 |
|
|
31,968 |
|
|
31,973 |
|
| |
|
|
|
|
| OPERATING EXPENSES |
|
|
|
|
|
Research and development (1) |
|
4,382 |
|
|
5,020 |
|
|
19,065 |
|
|
19,766 |
|
|
Selling, general and administrative (1) |
|
4,828 |
|
|
5,386 |
|
|
19,286 |
|
|
20,332 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
9,210 |
|
|
10,406 |
|
|
38,351 |
|
|
40,098 |
|
| |
|
|
|
|
| INCOME (LOSS) FROM
OPERATIONS |
|
924 |
|
|
(2,063 |
) |
|
(6,383 |
) |
|
(8,125 |
) |
| |
| NON-OPERATING
INCOME |
|
Interest income |
|
216 |
|
|
71 |
|
|
543 |
|
|
369 |
|
|
Net gain (loss) recognized on long-term investments |
|
245 |
|
|
(1,370 |
) |
|
788 |
|
|
9,916 |
|
|
Foreign exchange gain (loss) – net |
|
(79 |
) |
|
76 |
|
|
(162 |
) |
|
108 |
|
|
Gain on sale of real estate |
|
500 |
|
|
- |
|
|
500 |
|
|
- |
|
|
Other – net |
|
231 |
|
|
530 |
|
|
846 |
|
|
961 |
|
|
Total Non-operating Income (Loss) |
|
1,113 |
|
|
(693 |
) |
|
2,515 |
|
|
11,354 |
|
| |
|
|
|
|
| INCOME (LOSS) BEFORE INCOME
TAX |
|
2,037 |
|
|
(2,756 |
) |
|
(3,868 |
) |
|
3,229 |
|
| |
|
|
|
|
| INCOME TAX EXPENSE |
|
250 |
|
|
330 |
|
|
1,171 |
|
|
1,141 |
|
| |
|
|
|
|
| NET INCOME (LOSS) |
|
1,787 |
|
|
(3,086 |
) |
|
(5,039 |
) |
|
2,088 |
|
| |
| OTHER
COMPREHENSIVE INCOME |
|
Foreign currency translation adjustments |
|
356 |
|
|
(94 |
) |
|
(85 |
) |
|
(677 |
) |
|
Unrealized pension gain |
|
61 |
|
|
9 |
|
|
65 |
|
|
14 |
|
|
Total Other Comprehensive Income (Loss) |
|
417 |
|
|
(85 |
) |
|
(20 |
) |
|
(663 |
) |
| |
|
|
|
|
| COMPREHENSIVE INCOME
(LOSS) |
$ |
2,204 |
|
$ |
(3,171 |
) |
$ |
(5,059 |
) |
$ |
1,425 |
|
| |
|
|
|
|
| EARNINGS (LOSS) PER ADS |
|
|
|
|
|
Basic |
$ |
0.07 |
|
$ |
(0.12 |
) |
$ |
(0.19 |
) |
$ |
0.08 |
|
|
Diluted |
$ |
0.07 |
|
$ |
(0.12 |
) |
$ |
(0.19 |
) |
$ |
0.08 |
|
| |
|
|
|
|
| ADS UNITS USED IN EARNINGS
(LOSS) PER ADS CALCULATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (in thousands) |
|
26,347 |
|
|
26,019 |
|
|
26,321 |
|
|
26,016 |
|
|
Diluted (in thousands) |
|
27,095 |
|
|
26,019 |
|
|
26,321 |
|
|
26,616 |
|
| |
|
|
|
|
| (1) INCLUDES STOCK-BASED
COMPENSATION CHARGE AS FOLLOWS: |
|
|
|
|
|
Research and development |
$ |
68 |
|
$ |
59 |
|
$ |
272 |
|
$ |
241 |
|
|
Selling, general and administrative |
$ |
310 |
|
$ |
294 |
|
$ |
1,190 |
|
$ |
1,180 |
|
| |
|
O2MICRO INTERNATIONAL LIMITED AND
SUBSIDIARIES |
|
|
|
CONSOLIDATED BALANCE SHEETS |
|
(In Thousand U.S. Dollars, Except Share
Amounts) |
| |
| |
December 31, |
December 31, |
| |
|
2019 |
|
|
2018 |
|
| ASSETS |
(Unaudited) |
(Audited) |
| |
| CURRENT ASSETS |
|
Cash and cash equivalents |
$ |
10,696 |
|
$ |
32,414 |
|
|
Restricted cash |
|
35 |
|
|
34 |
|
|
Short-term investments |
|
35,693 |
|
|
6,172 |
|
|
Accounts receivable – net |
|
10,335 |
|
|
11,388 |
|
|
Inventories |
|
8,796 |
|
|
10,288 |
|
|
Prepaid expenses and other current assets |
|
1,295 |
|
|
2,276 |
|
|
Total Current Assets |
|
66,850 |
|
|
62,572 |
|
| |
| LONG-TERM INVESTMENTS |
|
4,172 |
|
|
10,445 |
|
| |
| PROPERTY AND EQUIPMENT – NET
(2) |
|
15,551 |
|
|
13,714 |
|
| |
| OTHER ASSETS |
|
2,426 |
|
|
2,578 |
|
| |
| TOTAL ASSETS |
$ |
88,999 |
|
$ |
89,309 |
|
| |
| LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|
|
| CURRENT
LIABILITIES |
|
Notes and accounts payable |
$ |
4,867 |
|
$ |
4,582 |
|
|
Income tax payable |
|
611 |
|
|
413 |
|
|
Lease liabilities |
|
827 |
|
|
- |
|
|
Accrued expenses and other current liabilities |
|
4,839 |
|
|
4,181 |
|
|
Total Current Liabilities |
|
11,144 |
|
|
9,176 |
|
| |
| OTHER LONG-TERM
LIABILITIES |
|
Accrued pension liabilities |
|
214 |
|
|
321 |
|
|
Deferred income tax liabilities |
|
589 |
|
|
681 |
|
|
Lease liabilities |
|
1,932 |
|
|
- |
|
|
Other liabilities |
|
65 |
|
|
85 |
|
|
Total Other Long-Term Liabilities |
|
2,800 |
|
|
1,087 |
|
| |
| Total Liabilities |
|
13,944 |
|
|
10,263 |
|
| |
| 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, 2019 and December
31, 2018 Outstanding –1,314,798,600 and 1,298,808,750 shares as of
December 31, 2019 and December 31, 2018, respectively |
|
33 |
|
|
33 |
|
|
Additional paid-in capital |
|
143,484 |
|
|
143,115 |
|
|
Accumulated deficits |
|
(51,773 |
) |
|
(45,912 |
) |
|
Accumulated other comprehensive income |
|
4,654 |
|
|
4,674 |
|
|
Treasury stock – 354,238,000 and 370,227,850 shares as of December
31, 2019 and December 31, 2018, respectively |
|
(21,343 |
) |
|
(22,864 |
) |
|
Total Shareholders’ Equity |
|
75,055 |
|
|
79,046 |
|
| |
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
88,999 |
|
$ |
89,309 |
|
(2) Property and equipment- net includes right-of-used assets
under operating lease of $2,742 as of December 31, 2019.
O2Micro
Daniel Meyberg
Investor Relations
ir@o2micro.com
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