O2Micro Reports Record First Quarter Sales and Earnings

Date1-May-2002
Wednesday May 1, 4:01 pm Eastern Time

 

Press Release

 

SOURCE: O2Micro

 

O2Micro Reports Record First Quarter Sales and Earnings

 

SANTA CLARA, Calif. & GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)-- May 1, 2002--O2Micro International Limited (Nasdaq:OIIM - news), a leading supplier of innovative power management and security ICs to mobile computer and communications manufacturers, reported its financial results today for the first quarter ended March 31, 2002.

 

Net sales for the first quarter were $16.1 million, a record high quarter for O2Micro. First quarter revenue of $16.1 million was an increase of 5% over the preceding quarter, and 83% over the comparable quarter of the prior year. Earnings per share for the first quarter, fully diluted, were 8 cents per share, compared to 7 cents per share in the preceding quarter, and 2 cents in the comparable quarter of the prior year.

 

Net income for the first quarter of $3,029,000 was a record high quarter for O2Micro, an increase of 12% over the preceding quarter, and 369% greater than the net income for the comparable quarter of the prior year. First quarter R&D expenditures were $4,572,000, an increase of 3% over the preceding quarter, and 59% over the comparable quarter of the prior year.

 

"First quarter revenue of $16.1 million and net income of $3,029,000 were each record highs for O2Micro," said Sterling Du, Chairman and CEO of O2Micro. "We are very pleased with the net income and 5% revenue growth in Q1 because it is traditionally the weaker quarter of the year in our customers' markets. Moreover, this 5% sequential revenue growth comes on top of sequential growth of 30% in Q4'01; 21% in Q3'01; and 11% in Q2'01."

 

Conference Call: O2Micro will hold its first quarter conference call today at 2:00 p.m. PDT, 5:00 p.m. EDT. You may participate by dialing 800/360-9865 or 973/694-6836 (for International participants). A replay of the call will be available by phone until May 8th by dialing 800/428-6051 or 973/709-2089 (for International participants), passcode #238600. A live simulcast will also be available on the company website at www.o2micro.com, and an online replay will be available on the site for one week.

 

About O2Micro

 

Founded in April 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 International maintains an extensive portfolio of intellectual property with 581 patent claims granted, and over 2100 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.

 

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O2Micro International Limited

Consolidated Statements of Operations and Comprehensive Income

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

 

Three Months Ended

March 31

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

2002 2001

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

(Unaudited)

 

NET SALES $16,103 $ 8,790

 

COST OF SALES 5,745 3,273

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

 

GROSS PROFIT 10,358 5,517

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

 

OPERATING EXPENSES

Research and development 4,572 2,867

Selling, general and administrative 2,664 2,437

Stock-based compensation 20 53

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

Total Operating Expenses 7,256 5,357

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

 

INCOME FROM OPERATIONS 3,102 160

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

 

NON-OPERATING INCOME (EXPENSES)

Interest income on bank deposits 318 520

Interest income on short-term investments 336 --

Impairment loss on investment in shares

of stocks ( 100) --

Interest expenses ( 1) ( 3)

Other - net ( 139) ( 3)

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

Total Non-operating Income - Net 414 514

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

 

INCOME BEFORE INCOME TAX 3,516 674

 

INCOME TAX EXPENSES 487 28

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

 

NET INCOME 3,029 646

 

OTHER COMPREHENSIVE LOSS

Translation adjustments on subsidiaries ( 18) ( 10)

Unrealized loss on available-for-sale

securities ( 177) --

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

Total Other Comprehensive Loss ( 195) ( 10)

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

 

COMPREHENSIVE INCOME $ 2,834 $ 636

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

 

EARNINGS PER SHARE:

Basic $ 0.08 $ 0.02

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

Diluted $ 0.08 $ 0.02

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

 

SHARES USED IN EARNINGS PER SHARE CALCULATION:

Basic (in thousands) 38,289 32,906

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

Diluted (in thousands) 40,354 34,372

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

 

O2Micro International Limited

Consolidated Balance Sheets

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

 

March 31, December 31,

A S S E T S 2002 2001

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

(Unaudited)

CURRENT ASSETS

Cash $ 50,062 $108,936

Restricted cash 1,587 1,159

Short-term investments 69,852 10,014

Accounts receivable - net 4,672 3,700

Inventories 6,109 5,361

Prepaid expenses and other current assets 1,926 1,808

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

Total Current Assets 134,208 130,978

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

 

INVESTMENT IN SHARES OF STOCKS 400 500

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

 

FIXED ASSETS - NET 3,778 3,213

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

 

OTHER ASSETS

Receivables from 360o Web Ltd. 1,750 750

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

Deferred income tax - noncurrent 219 219

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

Other assets 1,112 759

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

 

TOTAL ASSETS $141,467 $136,419

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

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES

Notes and accounts payable $ 3,808 $ 3,570

Income tax payable 1,679 1,220

Current portion of obligations under

capital lease 8 9

Accrued expenses and other current

liabilities 3,872 3,189

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

Total Current Liabilities 9,367 7,988

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

 

OBLIGATIONS UNDER CAPITAL LEASE - NET

OF CURRENT PORTION 5 7

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

 

Total Liabilities 9,372 7,995

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

 

SHAREHOLDERS' EQUITY

Ordinary shares at $0.001 par value per

share

Authorized - 95,000,000 shares. Issued

- 38,336,917 and 32,788,238 shares as

of March 31, 2002 and December 31,

2001, respectively 38 38

Additional paid-in capital 131,014 130,197

Warrants 51 51

Deferred compensation ( 24) ( 44)

Accumulated other comprehensive income ( 892) ( 697)

Accumulated earning (deficit) 1,908 (1,121)

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

Total Shareholders' Equity 132,095 128,424

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

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $141,467 $136,419

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

 

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Contact:

O2Micro

Gil Goodrich, 408/987-5920 ext. 8013

gil.goodrich@o2micro.com