O2Micro Reports Record Second Quarter Sales and Earnings

Date31-Jul-2002
O2Micro Reports Record Second Quarter Sales and Earnings

SANTA CLARA, Calif. & GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)-- July 31, 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 second quarter ended June 30, 2002.

 

Net sales for the second quarter were $17.7 million, a record high quarter for O2Micro. Second quarter revenue of $17.7 million was an increase of 10% over the preceding quarter, and 81% over the comparable quarter of the prior year. Earnings per share for the second quarter, fully diluted, were 8 cents per share, compared to 8 cents per share in the preceding quarter, and 3 cents in the comparable quarter of the prior year.

 

Net income for the second quarter of $3,008,000 was a decrease of 1% from the preceding quarter, and 214% greater than the net income for the comparable quarter of the prior year. Second quarter R&D expenditures were $4,626,000, an increase of 1% over the preceding quarter, and 42% over the comparable quarter of the prior year.

 

"In Q2 we continued to grow revenue and market share in key product areas," said Sterling Du, Chairman and CEO of O2Micro.

 

Conference Call: O2Micro will hold its second quarter conference call today at 2:00 p.m. PDT, 5:00 p.m. EDT. You may participate by dialing (800) 997-8642 or (973) 694-6836 (for International participants). A replay of the call will be available by phone until August 7th by dialing (800) 428-6051 or (973) 709-2089 (for International participants), passcode #249091. 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, Intelligent Inverter® and Battery Management IC's.

 

O2Micro International maintains an extensive portfolio of intellectual property with 639 patent claims granted, and over 2500 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 and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

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

 

Three Months Ended Six Months Ended

June 30 June 30

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

2002 2001 2002 2001

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

 

NET SALES $ 17,667 $ 9,781 $ 33,770 $ 18,571

 

COST OF SALES 7,393 3,346 13,138 6,619

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

 

GROSS PROFIT 10,274 6,435 20,632 11,952

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

 

OPERATING EXPENSES

Research and

development 4,626 3,252 9,198 6,120

Selling, general and

administrative 2,848 2,357 5,512 4,794

Stock-based

compensation 13 45 33 98

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

Total Operating

Expenses 7,487 5,654 14,743 11,012

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

 

INCOME FROM OPERATIONS 2,787 781 5,889 940

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

 

NON-OPERATING INCOME

(EXPENSES)

Interest income on

bank deposits 122 366 440 886

Interest income on

short-term investments 339 35 675 35

Impairment loss on

investment in shares

of stocks (129) - (229) -

Interest expenses (1) (5) (2) (8)

Other - net 355 107 216 104

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

Total Nonoperating

Income - Net 686 503 1,100 1,017

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

 

INCOME BEFORE

INCOME TAX 3,473 1,284 6,989 1,957

 

INCOME TAX EXPENSES 465 325 952 352

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

 

NET INCOME 3,008 959 6,037 1,605

 

OTHER COMPREHENSIVE LOSS

Translation adjustments

on subsidiaries 121 (154) 103 (164)

Unrealized loss on

available-for-sale

securities 112 - (65) -

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

 

Total Other

Comprehensive Loss 233 (154) 38 (164)

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

 

COMPREHENSIVE INCOME $ 3,241 $ 805 $ 6,075 $ 1,441

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

 

EARNINGS PER SHARE:

Basic $ 0.08 $ 0.03 $ 0.16 $ 0.05

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

Diluted $ 0.08 $ 0.03 $ 0.15 $ 0.05

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

 

SHARES USED IN

EARNINGS PER SHARE

CALCULATION:

Basic (in thousands) 38,435 33,268 38,362 33,087

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

Diluted (in thousands) 39,805 34,489 40,132 34,432

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

 

O2Micro International Limited and Subsidiaries

Consolidated Balance Sheets

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

 

June 30, December 31,

A S S E T S 2002 2001

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

(Unaudited)

CURRENT ASSETS

Cash $ 58,229 $ 108,936

Restricted cash 1,607 1,159

Short-term investments 62,817 10,014

Accounts receivable - net 7,101 3,700

Inventories 7,920 5,361

Prepaid expenses and

other current assets 1,913 1,808

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

Total Current Assets 139,587 130,978

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

 

INVESTMENT IN SHARES OF STOCKS 271 500

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

 

FIXED ASSETS - NET 4,181 3,213

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

 

OTHER ASSETS

Convertible loans to 3600 Web Ltd. 1,750 750

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

Deferred income tax - noncurrent 109 219

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

Other Assets 1,068 759

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

 

TOTAL ASSETS $ 146,966 $ 136,419

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

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES

Notes and accounts payable $ 6,687 $ 3,570

Income tax payable 1,475 1,220

Current portion of obligations

under capital lease 9 9

Accrued expenses and

other current liabilities 3,939 3,189

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

Total Current Liabilities 12,110 7,988

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

 

OBLIGATIONS UNDER CAPITAL LEASE

- NET OF CURRENT PORTION 3 7

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

 

Total Liabilities 12,113 7,995

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

 

SHAREHOLDERS' EQUITY

Ordinary shares at $0.001 par value

per share

Authorized - 95,000,000 shares.

Issued - 38,465,098 and 38,134,511

shares as of June 30, 2002 and

December 31, 2001, respectively 38 38

Treasury Stock - 89,500 shares (1,108) -

Additional paid-in capital 131,625 130,197

Warrants 51 51

Deferred compensation (10) (44)

Accumulated other

comprehensive income (659) (697)

Accumulated earning

(deficit) 4,916 (1,121)

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

Total Shareholders' Equity 134,853 128,424

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

 

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY $ 146,966 $ 136,419

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

 

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

Contact:

O2Micro

Gil Goodrich, 408/987-5920 x8013 (Investor Relations)

Email: gil.goodrich@o2micro.com