02 MICRO INTERNATIONAL LTD REPORTS FIRST QUARTER FINANCIAL RESULTS

Date29-Apr-2009
O2Micro Reports First Quarter Financial Results

 

On Wednesday April 29, 2009, 7:00 am EDT Buzz up! Print Related:O2Micro International Ltd. GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)--O2Micro® International Limited (NASDAQ :OIIM) (SEHK:0457 - News), a leading supplier of innovative power management and security components, reported its financial results today for the first quarter ended March 31, 2009.

 

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{"s" : "oiim","k" : "c10,l10,p20,t10","o" : "","j" : ""} Financial Results for the First Quarter ending 3/31/2009:

 

Net sales in the first quarter of 2009 were $23.1 million. Sales exceeded our expectations, although they declined by 38.5% from the comparable year-ago quarter. The decline in sales reflects the global economic slowdown and the corresponding impact on our business.

 

The GAAP gross margin was 55.5% in Q1 2009 and also exceeded our expectations. The gross margin fell from 58.5% in the year-ago period due to the fixed component of this expense relative to total revenue.

 

GAAP operating expenses were $16.8 million. These expenses were comprised of $8.0 million in R&D expenses, and $8.8 million in SG&A expenses. Both R&D and SG&A spending were at the low-end of our targeted ranges. In addition, the operating expenses were lower than the Q1 2008 period when the company recorded $19.8 million of expense, including $9.8 million of R&D and $12.0 million of SG&A spending, as well as $2.0 million of offset from litigation income.

 

During the first quarter of 2009, we reported a GAAP operating loss of $3.9 million, compared with operating income of $2.2 million in the year-ago quarter. The loss in the recent quarter was smaller than expected due to higher revenue, higher gross margin, and lower expenses.

 

Our GAAP net loss in Q1 2009 was $3.5 million, compared with net income of $2.2 million in the year-ago quarter. The net loss we reported in Q1 2009 was also smaller than we had expected due to the same drivers as our operating income. The GAAP loss per ADS was $0.10 in Q1 2009 and GAAP net income per ADS was $0.06 in Q1 2008.

 

Supplementary Data:

 

As of March 31, 2009, O2Micro had unrestricted cash and short-term investments of $105.5 million, or $2.87 per fully diluted ADS. Net accounts receivable was $12.1 million, and there were 44 days sales outstanding in accounts receivable at the end of the first quarter. Inventory was $13.0 million and turned over 2.8 times in the first quarter.

 

As of March 31, 2009, O2Micro headcount consisted of 845 employees, of which 564 are engineers. This headcount was down from 876 employees at the end of the fourth quarter of 2008.

 

Management Commentary:

 

Sterling Du, Chairman and CEO, commented, “We have adapted to the reset in global business activity and we are continuing to deliver the best-in-class technology to major OEM customers.” He continued, “At the same time, we are laser-focused on successfully bringing key new products to market in the battery, DC/DC, and Internet security segments. We are continuing to invest our R&D dollars in several young product lines and we are seeing early signs of success with them.”

 

Conference Call: O2Micro will hold its first quarter conference call at 5:00 a.m. PDT, 8:00 a.m. EDT, and 8:00 p.m. Hong Kong time. You may participate using the following dial-in information.

 

In the US and CANADA: 888-389-5979, pass code #3193459

In HONG KONG: 800-968-103, pass code #3193459

Other INTERNATIONAL participants: 719-325-2204, pass code #3193459

A replay of the call will be available by phone until May 6th using the following dial-in information.

In the US and CANADA: 888-203-1112, pass code #3193459

In HONG KONG: 800-901-108, pass code #3193459

Other INTERNATIONAL participants: 719-457-0820, pass code #3193459

A live simulcast will also be available on the company website at www.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 and security components for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, and SmartCardBus® products.

 

O2Micro International maintains an extensive portfolio of intellectual property with 11,830 patent claims granted, and over 14,000 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 are the property of their respective owners.

 

Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They include statements regarding O2Micro’s future growth, long term profitability, increases in shareholder value, introduction of innovative technologies, expansion of O2Micro’s product and patent portfolios, legal expenditures, litigation activity and other statements regarding O2Micro’s or management’s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future. 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 March 31, 2009 2008

NET SALES $ 23,110 $ 37,556

COST OF SALES 10,286 15,596

GROSS PROFIT 12,824 21,960

OPERATING EXPENSES (INCOME)

Research and development (1) 7,984 9,756

Selling, general and administrative (1) 8,783 12,021

Litigation income - (2,000 )

Total Operating Expenses 16,767 19,777

INCOME (LOSS) FROM OPERATIONS (3,943 ) 2,183

NON-OPERATING INCOME

Interest income 444 670

Foreign exchange gain (loss) 487 (114 )

Other – net (11 ) 13

Total Non-operating Income 920 569

INCOME (LOSS) BEFORE INCOME TAX (3,023 ) 2,752

INCOME TAX EXPENSE 518 492

NET INCOME (LOSS) (3,541 ) 2,260

OTHER COMPREHENSIVE INCOME (LOSS)

Foreign currency translation adjustments (644 ) 2,010

Unrealized gain (loss) on available-for-sale securities 1,503 (2,864 )

Unrealized pension gain 1 -

Total Other Comprehensive Income (Loss) 860 (854 )

COMPREHENSIVE INCOME (LOSS) $ (2,681 ) $ 1,406

EARNINGS (LOSS) PER SHARE:

Basic $ (0.0019 ) $ 0.0012

Diluted NA $ 0.0012

EARNINGS (LOSS) PER ADS

Basic $ (0.10 ) $ 0.06

Diluted NA $ 0.06

SHARES USED IN EARNINGS (LOSS) PER SHARE CALCULATION:

Basic (in thousands) 1,838,683 1,894,334

Diluted (in thousands) NA 1,903,655

ADS UNITS USED IN EARNINGS PER ADS CALCULATION:

Basic (in thousands) 36,774 37,887

Diluted (in thousands) NA 38,073

(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:

Research and development $ 282 $ 258

Selling, general and administrative $ 489 $ 415

O2Micro International Limited and Subsidiaries

 

Consolidated Balance Sheets

 

(In Thousand U.S. Dollars, Except Share Amounts)

March 31, December 31,

2009

2008

ASSETS

(Unaudited)

CURRENT ASSETS

Cash and cash equivalents $ 37,755 $ 31,844

Restricted cash 1,151 1,153

Short-term investments 67,747 72,344

Accounts receivable – net 12,109 10,578

Inventories 12,950 16,388

Prepaid expenses and other current assets 2,614 2,314

Total Current Assets 134,326 134,621

LONG-TERM INVESTMENTS 14,689 13,199

PROPERTY AND EQUIPMENT – NET 33,384 34,353

OTHER ASSETS

Restricted assets – net 1,361 1,411

Intangible assets 4,763 4,929

Other Assets 4,551 4,760

TOTAL ASSETS $ 193,074 $ 193,273

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES

Notes and accounts payable $ 5,074 $ 4,120

Income tax payable 443 226

Accrued expenses and other current liabilities 8,670 8,269

Total Current Liabilities 14,187 12,615

OTHER LONG-TERM LIABILITIES

Accrued pension liabilities 513 553

FIN 48 tax liabilities 302 302

Other liabilities 23 23

838 878

Total Liabilities 15,025 13,493

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 – 1,839,591,200 and 1,832,788,400 shares as of March 31, 2009 and December 31, 2008, respectively 37 37

Additional paid-in capital 142,734 141,784

Retained earnings 33,205 36,746

Accumulated other comprehensive income 2,073 1,213

Total Shareholders’ Equity 178,049 179,780

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 193,074 $ 193,273

 

Contact:

O2Micro

Gary E. Abbott, 408-987-5920 ext. 8888

Director of Investor Relations

gary.abbott@o2micro.comEmailIM Bookmarkdel.icio.usDigg Buzz up!