O2Micro Reports First Quarter Sales and Earnings

Date30-Apr-2003
O2Micro Reports First Quarter Sales and Earnings

Wednesday April 30, 4:02 pm ET

 

SANTA CLARA, Calif. & GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)--April 30, 2003--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, 2003.

Net sales for the first quarter were $19.3 million for O2Micro. First quarter revenue of $19.3 million was an increase of 5% over the preceding quarter, and 20% over the comparable quarter of the prior year. Earnings per share for the first quarter, fully diluted, were 4 cents per share, compared to 6 cents per share in the preceding quarter, and 8 cents in the comparable quarter of the prior year.

 

Net income for the first quarter of $1,687,000 was a decrease of 21% from the preceding quarter, and 44% less than the net income for the comparable quarter of the prior year. The decrease in net income was largely due to interim legal expenses related to O2Micro's intellectual property protection plan. First quarter R&D expenditures were $4,912,000, a decrease of 2% over the preceding quarter, and an increase of 7% over the comparable quarter of the prior year.

 

"In Q1 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 first quarter conference call today at 2:00 p.m. PDT, 5:00 p.m. EDT. You may participate by dialing 800/915-4836 or 973/317-5319 (for International participants). A replay of the call will be available by phone until May 7th by dialing 800/428-6051 or 973/709-2089 (for International participants), passcode #287985. 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 Lighting and Battery Management IC's.

 

O2Micro International maintains an extensive portfolio of intellectual property with 1079 patent claims granted, and over 4000 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 and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

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

 

Three Months Ended

March 31,

2003 2002

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

NET SALES $19,341 $16,103

 

COST OF SALES 8,384 5,745

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

GROSS PROFIT 10,957 10,358

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

OPERATING EXPENSES

Research and development (exclusive of

amortization of deferred stock compensation

of $0 and $14 for the three months ended

March 31, 2003 and 2002, respectively) 4,912 4,572

Selling, general and administrative

(exclusive of amortization of deferred

stock compensation of $0 and $6 for the

three months ended March 31, 2003 and

2002, respectively) 4,319 2,664

Stock-based compensation - 20

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

Total Operating Expenses 9,231 7,256

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

 

INCOME FROM OPERATIONS 1,726 3,102

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

 

NON-OPERATING INCOME (EXPENSES)

Interest income 279 654

Impairment loss on investment in shares of

stocks ( 11) ( 100)

Interest expenses ( 1) ( 1)

Other - net ( 36) ( 139)

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

Total Non-operating Income - Net 231 414

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

INCOME BEFORE INCOME TAX 1,957 3,516

 

INCOME TAX EXPENSES 270 487

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

NET INCOME 1,687 3,029

 

OTHER COMPREHENSIVE INCOME (LOSS)

Translation adjustments on subsidiaries ( 256) ( 18)

Unrealized gain (loss) on available-for-sale

securities 84 ( 177)

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

Total Other Comprehensive Loss ( 172) ( 195)

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

 

COMPREHENSIVE INCOME $1,515 $2,834

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

 

EARNINGS PER SHARE:

Basic $0.04 $0.08

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

Diluted $0.04 $0.08

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

 

SHARES USED IN EARNINGS PER SHARE

CALCULATION:

Basic (in thousands) 38,091 38,289

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

Diluted (in thousands) 38,828 40,354

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

 

O2Micro International Limited and Subsidiaries

Consolidated Balance Sheets

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

 

March 31, December 31,

2003 2002

ASSETS ------------ ------------

(Unaudited)

CURRENT ASSETS

Cash and cash equivalents $72,848 $69,334

Restricted cash 1,882 2,019

Short-term investments 35,996 42,675

Accounts receivable - net 9,859 7,595

Inventories 8,208 6,967

Prepaid expenses and other current assets 3,161 2,891

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

Total Current Assets 131,954 131,481

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

 

INVESTMENT IN SHARES OF STOCKS 7,724 5,985

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

 

FIXED ASSETS - NET 5,668 5,611

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

 

CONVERTIBLE LOANS TO 3600 WEB LTD. - 1,750

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

 

RESTRICTED ASSETS 2,373 -

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

 

OTHER ASSETS 1,479 1,009

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

 

TOTAL ASSETS $149,198 $145,836

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

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

CURRENT LIABILITIES

Notes and accounts payable $5,816 $5,202

Income taxes payable 2,142 1,957

Current portion of obligations under capital

lease 5 7

Accrued expenses and other current

liabilities 5,171 3,522

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

Total Current Liabilities 13,134 10,688

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

 

OBLIGATIONS UNDER CAPITAL LEASE - NET OF

CURRENT PORTION - -

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

 

Total Liabilities 13,134 10,688

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

 

COMMITMENTS AND CONTINGENCIES - -

 

SHAREHOLDERS' EQUITY

Preference shares at $0.001 par value per

share

Authorized - 5,000,000 shares. - -

Ordinary shares at $0.001 par value per

share

Authorized - 95,000,000 shares

Issued - 38,875,888 and 38,857,094 shares

as of March 31, 2003 and December 31,

2002, respectively. 39 39

 

Treasury stock - 798,200 and 720,700 shares

as of March 31, 2003 and December 31, 2002 ( 7,470) ( 6,823)

Additional paid-in capital 133,063 133,016

Accumulated other comprehensive income

(loss) ( 863) ( 692)

Retained earnings 11,295 9,608

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

Total Shareholders' Equity 136,064 135,148

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

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $149,198 $145,836

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

 

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Contact:

O2Micro

Gil Goodrich, 408/987-5920 ext. 8013

gil.goodrich@o2micro.com