O2Micro Reports Record Fourth Quarter Sales and Earnings

Date30-Jan-2002
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Wednesday January 30, 4:03 pm Eastern Time

Press Release

SOURCE: O2Micro

O2Micro Reports Record Fourth Quarter Sales and Earnings

SANTA CLARA, Calif. & GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)-- Jan. 30, 2002--O2Micro International Limited (Nasdaq:OIIM - news), a leading supplier of innovative power management and security ICs to mobile computer and communications manufacturers, reported today its financial results for the fourth quarter and fiscal year ended December 31, 2001.

 

Net sales for the fourth quarter, were $15.4 million. Fourth quarter revenue of $15.4 million was an increase of 30% over the preceding quarter, and 36% over the comparable quarter of the prior year. Earnings per share for the fourth quarter, fully diluted, were 7 cents per share, compared to 4 cents per share in the preceding quarter, and 6 cents in the comparable quarter of the prior year.

 

Net income for the fourth quarter of $2,711,000 was an increase of 106% over the preceding quarter and 33% greater than the net income for the comparable quarter of the prior year. Fourth quarter R&D expenditures were $4,429,000, an increase of 17% over the preceding quarter, and 61% over the comparable quarter of the prior year.

 

For the fiscal year ended December 31, 2001, total revenues were $45.8 million, an increase of 14% from $40.4 million in fiscal year 2000. O2Micro grew sales revenue despite the industry inventory correction and general economic conditions. Earnings per share for the year ended December 31, 2001 were $0.16, compared to $0.21 for the previous year. Net income was $5,634,000, compared to $6,644,000 for the previous year. R&D expenditures were $14,320,000, compared to $9,682,000 for the previous year, an increase of 48%.

 

``We were very pleased with our results for the quarter and year,'' said Sterling Du, Chairman and CEO of O2Micro. ``This year was one of success and significantly increased R&D investment that will be key to sustaining our growth in 2002 and beyond.''

 

Conference Call: O2Micro will hold its fourth quarter conference call today at 2:00 p.m. PST, 5:00 p.m. EST. You may participate by dialing (800) 360-9865 or (973) 694-6836. A replay of the call will be available by phone until February 6th by dialing (800) 428-6051 or (973) 709-2089, passcode No. 222204.

 

About O2Micro

 

Founded in March 1995, O2Micro designs, develops and markets innovative power management and security components for mobile communication, computer, information appliance, and LCD products. Products include AudioDJ®, SmartCardBus® for secure on line e-commerce, LCD Backlight Inverters and Battery Management IC's.

 

O2Micro maintains an extensive portfolio of intellectual property with 378 patent claims granted, and over 800 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.

 

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 documents filed by O2Micro with the SEC from time to time, including but not limited to the Form F-1 in connection with the company's initial public offering in August 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.

 

O2Micro International Limited

Consolidated Statements of Operations and Comprehensive Income

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

 

Three Months Twelve Months

Ended December 31 Ended December 31

------------------- -------------------

2001 2000 2001 2000

-------- -------- -------- --------

(Unaudited)

 

NET SALES $ 15,394 $ 11,334 $ 45,819 $ 40,356

 

COST OF SALES 5,541 4,596 16,465 15,687

-------- -------- -------- --------

 

GROSS PROFIT 9,853 6,738 29,354 24,669

-------- -------- -------- --------

 

OPERATING EXPENSES

Research and development 4,429 2,746 14,320 9,682

Selling, general and

administrative 2,604 2,249 9,909 8,714

Stock-based compensation 21 68 166 458

-------- -------- -------- --------

Total Operating Expenses 7,054 5,063 24,395 18,854

-------- -------- -------- --------

 

INCOME FROM OPERATIONS 2,799 1,675 4,959 5,815

-------- -------- -------- --------

 

NON-OPERATING INCOME (LOSS)

Interest income on

bank deposits 338 577 1,511 903

Interest income on

short-term investments 150 -- 303 --

Interest expenses (2) (4) (11) (16)

Other - net (31) 68 24 169

-------- -------- -------- --------

Total Non-Operating

Income - Net 455 641 1,827 1,056

-------- -------- -------- --------

 

INCOME BEFORE INCOME TAX 3,254 2,316 6,786 6,871

 

INCOME TAX EXPENSE 543 284 1,152 227

-------- -------- -------- --------

 

NET INCOME 2,711 2,032 5,634 6,644

 

OTHER COMPREHENSIVE

INCOME (LOSS)

Translation adjustments

on subsidiaries (254) (94) (489) (185)

Unrealized gain on

available-for-sale securities (54) -- 15 --

-------- -------- -------- --------

Total Other Comprehensive Loss (308) (94) (474) (185)

-------- -------- -------- --------

 

COMPREHENSIVE INCOME $ 2,403 $ 1,938 $ 5,160 $ 6,459

======== ======== ======== ========

 

EARNINGS PER SHARE:

Basic $ 0.07 $ 0.06 $ 0.17 $ 0.34

======== ======== ======== ========

Diluted $ 0.07 $ 0.06 $ 0.16 $ 0.21

======== ======== ======== ========

 

NUMBER OF THOUSAND SHARES USED IN

EARNINGS PER SHARE CALCULATION:

Basic 36,555 32,779 34,020 19,419

======== ======== ======== ========

Diluted 38,480 34,486 35,576 32,260

======== ======== ======== ========

 

O2Micro International Limited

Consolidated Balance Sheets

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

 

December 31

A S S E T S 2001 2000

----------- -------- --------

 

CURRENT ASSETS

Cash $108,936 $ 37,448

Restricted cash 1,159 1,199

Short-term investments 10,014 --

Accounts receivable - net 3,700 5,420

Inventories 5,361 5,472

Prepaid expenses and

other current assets 1,808 1,148

-------- --------

Total Current Assets 130,978 50,687

-------- --------

 

LONG-TERM INVESTMENT 500 500

-------- --------

 

FIXED ASSETS - NET 3,213 2,102

-------- --------

 

OTHER ASSETS

Receivables from

3600 Web Ltd. 750 750

-------- --------

Deferred income tax -

noncurrent 219 133

-------- --------

Other assets 759 435

-------- --------

 

TOTAL ASSETS $136,419 $ 54,607

======== ========

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES

Notes and accounts payable $ 3,570 $ 3,767

Income tax payable 1,220 449

Current portion of obligations

under capital lease 9 41

Accrued expenses and

other current liabilities 3,189 2,358

-------- --------

Total Current Liabilities 7,988 6,615

-------- --------

 

OBLIGATIONS UNDER

CAPITAL LEASE - NET OF

CURRENT PORTION 7 13

-------- --------

 

GUARANTEE DEPOSITS -- 51

-------- --------

 

Total Liabilities 7,995 6,679

-------- --------

 

SHAREHOLDERS' EQUITY

Ordinary shares at $0.001

par value per share

Authorized - 95,000,000 shares

Issued - 38,134,511 and 32,788,238

shares as of December 31, 2001 and

December 31, 2000, respectively 38 33

Additional paid-in capital 130,197 55,071

Warrants 51 51

Deferred compensation (44) (249)

Accumulated other comprehensive income (697) (223)

Accumulated deficit (1,121) (6,755)

-------- --------

Total Shareholders' Equity 128,424 47,928

-------- --------

 

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY $136,419 $ 54,607

======== ========