GEORGE TOWN, Grand Cayman, Feb. 3, 2010 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM) reported its financial results today for the fourth quarter and fiscal year 2009, ending December 31, 2009.
Financial Results for the Fourth Quarter ending 12/31/2009:
O2Micro International reported Q4 2009 GAAP revenue of $33.1 million. Q4 revenue increased by 46% compared with the year-ago quarter. During the fourth quarter of 2009, the company also reported a gross profit of $20.1 million with a corresponding gross margin of 60.6%. The recent quarter compares favorably with the year-ago period when the company reported a gross profit of $12.6 million with a gross margin of 55.6%.
Fourth quarter GAAP operating expenses were $19.0 million in 2009, compared to $19.5 million in the fourth quarter of 2008. During the fourth quarter of 2008, the company incurred a write-off of $2.8 million for goodwill impairment and there was no comparable expense in Q4 2009. The GAAP operating margin was 3.4% in Q4 2009, compared to (30.3%) in Q4 2008.
Net non-operating income was $170,000 in Q4 2009, compared to ($277,000) in Q4 2008. Income taxes were $320,000 and $715,000 in the fourth quarters of 2009 and 2008, respectively. GAAP net income (loss) was $962,000 in the fourth quarter of 2009, compared to ($7.9) million in the fourth quarter of 2008. GAAP net income (loss) per full-diluted ADS was 0.03 and ($0.21) during the fourth quarters of 2009 and 2008, respectively.
Financial Results for the Fiscal Year ending 12/31/2009:
For the fiscal year ending December 31, 2009, O2Micro International reported revenue of $127.5 million. This was down 8.2% from 2008 revenue of $138.8 million. Gross profit was $75.5 million in 2009, compared to $80.7 million in 2008. The gross margin was 59.2% in 2009, up from 58.1% in 2008.
GAAP operating expenses were $78.1 million in 2009 and represented 61.2% of revenue. This compares to $80.2 million and 57.7% of revenue in 2008. During 2008, GAAP operating expenses included a one time gain of $2 million of litigation income, in addition to one-time expenses of $2.8 million for goodwill impairment and $2.9 million for the write-off of prepaid foundry services. GAAP income (loss) from operations was ($2.6) million in 2009, compared to $564,000 in 2008. The corresponding GAAP operating margins were (2.0%) and 0% for 2009 and 2008, respectively.
Net non-operating income (loss) was $1.4 million in 2009, compared to ($12.1) million in 2008. During 2008, the company incurred a one-time impairment loss of $14.1 million on long-term investments that was included in the net non-operating loss. Income tax expense was $1.6 million in 2009 and $2.2 million in 2008. These results yielded GAAP net losses of $2.8 million and $13.8 million during 2009 and 2008, respectively. The GAAP net losses per ADS were $0.08 and $0.37 for 2009 and 2008, respectively.
Supplementary Data:
The company ended the fourth quarter of 2009 with $113.3 million in unrestricted cash and short-term investments or $3.13 per ADS. The accounts receivable balance was $14.6 million and represented 40 days sales outstanding at the end of the Q4 2009. Inventory was $9.5 million and turned over 5.1 times during Q4 2009. As of 12/31/09, the company had $124.0 million in working capital and the book value was $179.4 million, or $4.96 per ADS.
As of December 31st 2009, O2Micro International also counted 850 employees, including 536 engineers.
Management Commentary:
Sterling Du, Chairman and CEO, commented, “Our fourth quarter showed sustained improvement and we were pleased to achieve 46% year-to-year growth. We have met all the challenges of this economy and we are looking forward to a year of growth and increasing profitability in 2010.”
Conference Call: O2Micro will hold its fourth quarter conference call on February 3, 2010 at 5:00 a.m. PST, 8:00 a.m. EST. You may participate using the following dial-in information.
| In the U.S. and CANADA: | 800-946-0706, passcode #4392341 | |||
| INTERNATIONAL participants: | 719-457-2653, passcode #4392341 | |||
A replay of the call will be available by phone until February 10, 2010 using the following dial-in information.
| In the U.S. and CANADA: | 888-203-1112, passcode #4392341 | |||
| INTERNATIONAL participants: | 719-457-0820, passcode #4392341 | |||
A live simulcast will also be available on the company website at www.o2micro.com, and an online replay will be available on the website for one week.
About O2Micro
Founded in April 1995, O2Micro develops and markets innovative power management and security components for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, and SmartCardBus® products.
O2Micro International maintains an extensive portfolio of intellectual property with 13,404 patent claims granted, and over 15,000 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.
O2Micro, the O2Micro logo, SmartCardBus, and combinations thereof are registered trademarks of O2Micro. All other trademarks are the property of their respective owners.
The O2Micro International Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6567
| O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
| (In Thousand U.S. Dollars, Except Per Share Amounts) | ||||
|
Three Months Ended December 31, |
Years Ended December 31, |
|||
| 2009 | 2008 | 2009 | 2008 | |
| (Unaudited) | (Unaudited) | (Audited) | ||
| NET SALES | $33,119 | $22,692 | $127,498 | $138,825 |
| COST OF SALES | 13,037 | 10,070 | 52,020 | 58,110 |
| GROSS PROFIT | 20,082 | 12,622 | 75,478 | 80,715 |
| OPERATING EXPENSES (INCOME) | ||||
| Research and development (1) | 8,554 | 8,398 | 33,017 | 37,424 |
| Selling, general and administrative (1) | 10,416 | 8,312 | 45,049 | 39,003 |
| Goodwill impairment | -- | 2,782 | -- | 2,782 |
| Write-off of prepayment to foundry services | -- | -- | -- | 2,942 |
| Litigation income | -- | -- | -- | (2,000) |
| Total Operating Expenses | 18,970 | 19,492 | 78,066 | 80,151 |
| INCOME (LOSS) FROM OPERATIONS | 1,112 | (6,870) | (2,588) | 564 |
| NON-OPERATING INCOME (LOSS) | ||||
| Interest income | 162 | 618 | 1,319 | 2,328 |
| Foreign exchange gain (loss) – net | (11) | 110 | 28 | (412) |
| Impairment loss on long-term investments | -- | (1,073) | -- | (14,146) |
| Other – net | 19 | 68 | 26 | 97 |
| Total Non-operating Income (Loss) | 170 | (277) | 1,373 | (12,133) |
| INCOME (LOSS) BEFORE INCOME TAX | 1,282 | (7,147) | (1,215) | (11,569) |
| INCOME TAX EXPENSE | 320 | 715 | 1,602 | 2,240 |
| NET INCOME (LOSS) | 962 | (7,862) | (2,817) | (13,809) |
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||
| Foreign currency translation adjustments | 30 | (331) | 287 | 1,466 |
| Unrealized gain (loss) on available-for-sale securities | 1,073 | 939 | 2,006 | (3,776) |
| Unrealized pension gain (loss) | 4 | (123) | 9 | (123) |
| Total Other Comprehensive Income (Loss) | 1,107 | 485 | 2,302 | (2,433) |
| COMPREHENSIVE INCOME (LOSS) | $2,069 | $(7,377) | $(515) | $(16,242) |
| EARNINGS (LOSS) PER SHARE: | ||||
| Basic | $0.0005 | $(0.0043) | $(0.0015) | $(0.0074) |
| Diluted | $0.0005 | NA | NA | NA |
| EARNINGS (LOSS) PER ADS | ||||
| Basic | $0.03 | $(0.21) | $(0.08) | $(0.37) |
| Diluted | $0.03 | NA | NA | NA |
| SHARES USED IN EARNINGS (LOSS) PER SHARE CALCULATION: | ||||
| Basic (in thousands) | 1,829,049 | 1,832,744 | 1,840,995 | 1,862,831 |
| Diluted (in thousands) | 1,861,404 | 1,834,501 | 1,865,876 | 1,869,218 |
| ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION: | ||||
| Basic (in thousands) | 36,581 | 36,655 | 36,820 | 37,257 |
| Diluted (in thousands) | 37,228 | 36,690 | 37,318 | 37,384 |
| (1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS: | ||||
| Research and development | $267 | $237 | $1,180 | $1,067 |
| Selling, general and administrative | $543 | $344 | $2,215 | $1,621 |
| O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In Thousand U.S. Dollars, Except Share Amounts) | ||
| December 31, 2009 | December 31, 2008 | |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $38,831 | $31,844 |
| Restricted cash | 236 | 1,153 |
| Short-term investments | 74,502 | 72,344 |
| Accounts receivable – net | 14,556 | 10,578 |
| Inventories | 9,457 | 16,388 |
| Prepaid expenses and other current assets | 3,342 | 2,314 |
| Total Current Assets | 140,924 | 134,621 |
| LONG-TERM INVESTMENTS | 15,190 | 13,199 |
| PROPERTY AND EQUIPMENT – NET | 30,570 | 34,353 |
| OTHER ASSETS | ||
| Restricted assets – net | 1,443 | 1,411 |
| Intangible assets | 4,266 | 4,929 |
| Other Assets | 4,921 | 4,760 |
| TOTAL ASSETS | $197,314 | $193,273 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES | ||
| Notes and accounts payable | $8,760 | $4,120 |
| Income tax payable | 411 | 226 |
| Accrued expenses and other current liabilities | 7,731 | 8,269 |
| Total Current Liabilities | 16,902 | 12,615 |
| OTHER LONG-TERM LIABILITIES | ||
| Accrued pension liabilities | 498 | 553 |
| FIN 48 tax liabilities | 341 | 302 |
| Other liabilities | 129 | 23 |
| Total Other Long-Term Liabilities | 968 | 878 |
| Total Liabilities | 17,870 | 13,493 |
| 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 – 1,809,461,200 and 1,832,788,400 shares as of December 31, 2009 and 2008, respectively | 36 | 37 |
| Additional paid-in capital | 142,679 | 141,784 |
| Retained earnings | 33,214 | 36,746 |
| Accumulated other comprehensive income | 3,515 | 1,213 |
| Total Shareholders’ Equity | 179,444 | 179,780 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $197,314 | $193,273 |