O2Micro International Limited - O2Micro Reports First Quarter Results

Date2-May-2012

GEORGE TOWN, Grand Cayman, May 2, 2012 (GLOBE NEWSWIRE) -- O2Micro(R) International Limited (OIIM - News) reported its financial results today for the first quarter of 2012, ending March 31, 2012.

Financial Highlights for the First Quarter of 2012:

O2Micro International Limited reported Q1 2012 revenue of $29.7 million. Revenue was up 4% sequentially and down 4% from the comparable year-ago quarter. The gross margin in the first quarter of 2012 was 56.2%. The gross margin was flat with 56.1% in the prior quarter and down from 59.7% in the first quarter of 2011. During the first quarter of 2012, the company recorded total GAAP operating expenses of $17.1 million, compared to $16.5 million in the fourth quarter of 2011 and $15.2 million in the year-ago Q1 period. Operating expenses in the first quarters of 2012 and 2011 included expense offsets for litigation income of $100,000 and $850,000, respectively. There were no corresponding offsets included in the fourth quarter of 2011. The respective GAAP operating margins for the first quarter of 2012, and the fourth and first quarters of 2011 were (1.3%), (1.4%), and 10.7%.

GAAP net income was $44,000 in Q1 2012. This compares to GAAP net income of $1.9 million in the fourth quarter of 2011 and GAAP net income of $3.1 million in Q1 2011. GAAP net income per fully diluted ADS was $0.00 in Q1 2012, $0.06 in Q4 2011, and $0.09 in Q1 2011.

Supplementary Data:

The company ended the first quarter of 2012 with $120.1 million in unrestricted cash and short-term investments or $3.62 per outstanding ADS. The accounts receivable balance was $15.5 million and represented 42 days sales outstanding at the end of Q1 2012. Inventory was $7.9 million or 55 days and turned over 6.6 times during Q1 2012. As of March 31, 2012, the company had $129.9 million in working capital and the book value was $179.8 million, or $5.41 per outstanding ADS.

As of December 31, 2011, O2Micro International Limited counted 803 employees, including 446 engineers.

Management Commentary:

Sterling Du, Chairman and CEO, commented, "Our revenue began to rebound in the first quarter and we are optimistic about the future." Mr. Du continued, "In recent months, we have been granted several key patents that should position our new products well in the power, battery and general lighting markets."

Conference Call: O2Micro will hold its first quarter conference call today, May 2, 2012, at 6:00 a.m. PDT, 9:00 a.m. EDT. You may participate using the following dial-in information.

In the US and CANADA: 877-857-6173, passcode # 8119004

INTERNATIONAL participants: 719-325-4793, passcode # 8119004

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 # 8119004

INTERNATIONAL participants: 719-457-0820, passcode # 8119004

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 19,795 patent claims granted, and over 20,000 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 developments 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,

2012 2011

NET SALES

$ 29,687 $ 31,076





COST OF SALES

13,013 12,534





GROSS PROFIT

16,674 18,542





OPERATING EXPENSES (INCOME)



Research and development (1)

8,623 8,417
Selling, general and administrative (1)

8,531 7,652
Litigation income

(100) (850)
Total Operating Expenses

17,054 15,219





INCOME (LOSS) FROM OPERATIONS

(380) 3,323





NON-OPERATING INCOME



Interest income

435 271
Foreign exchange gain (loss) -- net

6 (59 )
Other -- net

(110) 3
Total Non-operating Income

331 215





INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX

(49) 3,538





INCOME TAX EXPENSE

245 359





NET INCOME (LOSS) FROM CONTINUING OPERATIONS

(294) 3,179





INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX

338 (33)





NET INCOME

44 3,146





OTHER COMPREHENSIVE INCOME



Unrealized gain on available-for-sale securities

174 444
Foreign currency translation adjustments

510 223
Unrealized pension gain

4 4
Total Other Comprehensive Income

688 671





COMPREHENSIVE INCOME

$ 732 $ 3,817





BASIC EARNINGS (LOSS) PER ADS



Continuing operations

$ (0.01) $ 0.09
Discontinued operations

0.01 --



$ -- $ 0.09





DILUTED EARNINGS (LOSS) PER ADS



Continuing operations

$ (0.01) $ 0.09
Discontinued operations

0.01 --



$ -- $ 0.09





ADS UNITS USED IN EARNINGS PER ADS CALCULATION:



Basic (in thousands)

31,736 33,509
Diluted (in thousands)

32,522 34,569





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



Research and development

$ 252 $ 333
Selling, general and administrative

$ 468 $ 761





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


March 31, December 31,

2012 2011
ASSETS (Unaudited) (Audited)



CURRENT ASSETS

Cash and cash equivalents $ 20,636 $ 32,562
Restricted cash 174 169
Short-term investments 99,503 93,016
Accounts receivable -- net 15,530 12,062
Inventories 7,926 7,926
Prepaid expenses and other current assets 2,322 2,228
Total Current Assets 146,091 147,963



LONG-TERM INVESTMENTS 16,099 15,939



PROPERTY AND EQUIPMENT -- NET 28,375 28,330



OTHER ASSETS

Intangible assets 1,481 1,565
Other Assets 4,779 4,614
Total Other Assets 6,260 6,179



TOTAL ASSETS $196,825 $198,411



LIABILITIES AND SHAREHOLDERS' EQUITY



CURRENT LIABILITIES

Notes and accounts payable $ 7,553 $ 6,641
Income tax payable 552 606
Accrued expenses and other current liabilities 8,053 8,237
Total Current Liabilities 16,158 15,484



OTHER LONG-TERM LIABILITIES

Accrued pension liabilities 631 628
Long-term income tax liabilities 66 66
Other liabilities 129 129
Total Other Long-Term Liabilities 826 823



Total Liabilities 16,984 16,307



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 -- 1,660,786,600 and 1,653,265,600 shares as of March 31, 2012 and December 31, 2011, respectively 33 33
Additional paid-in capital 136,722 136,625
Retained earnings 42,702 42,658
Accumulated other comprehensive income 7,587 6,899
Treasury stock -- 79,242,450 and 47,990,100 shares as of March 31, 2012 and December 31, 2011, respectively (7,203) (4,111)
Total Shareholders' Equity 179,841 182,104



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $196,825 $198,411

Contact:
Gary E. Abbott
Director of Investor Relations, O2Micro
Phone: 408.987.5920, x8888
Email: gary.abbott@o2micro.com