GEORGE TOWN, Grand Cayman, May 2, 2012 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM) reported its financial results today for the first quarter of 2012, ending March 31, 2012.
Financial Highlights for the First Quarter of 2012:
O2Micro International Limited reported Q1 2012 revenue of $29.7 million. Revenue was up 4% sequentially and down 4% from the comparable year-ago quarter. The gross margin in the first quarter of 2012 was 56.2%. The gross margin was flat with 56.1% in the prior quarter and down from 59.7% in the first quarter of 2011. During the first quarter of 2012, the company recorded total GAAP operating expenses of $17.1 million, compared to $16.5 million in the fourth quarter of 2011 and $15.2 million in the year-ago Q1 period. Operating expenses in the first quarters of 2012 and 2011 included expense offsets for litigation income of $100,000 and $850,000, respectively. There were no corresponding offsets included in the fourth quarter of 2011. The respective GAAP operating margins for the first quarter of 2012, and the fourth and first quarters of 2011 were (1.3%), (1.4%), and 10.7%.
GAAP net income was $44,000 in Q1 2012. This compares to GAAP net income of $1.9 million in the fourth quarter of 2011 and GAAP net income of $3.1 million in Q1 2011. GAAP net income per fully diluted ADS was $0.00 in Q1 2012, $0.06 in Q4 2011, and $0.09 in Q1 2011.
Supplementary Data:
The company ended the first quarter of 2012 with $120.1 million in unrestricted cash and short-term investments or $3.62 per outstanding ADS. The accounts receivable balance was $15.5 million and represented 42 days sales outstanding at the end of Q1 2012. Inventory was $7.9 million or 55 days and turned over 6.6 times during Q1 2012. As of March 31, 2012, the company had $129.9 million in working capital and the book value was $179.8 million, or $5.41 per outstanding ADS.
As of December 31, 2011, O2Micro International Limited counted 803 employees, including 446 engineers.
Management Commentary:
Sterling Du, Chairman and CEO, commented, "Our revenue began to rebound in the first quarter and we are optimistic about the future." Mr. Du continued, "In recent months, we have been granted several key patents that should position our new products well in the power, battery and general lighting markets."
Conference Call: O2Micro will hold its first quarter conference call today, May 2, 2012, at 6:00 a.m. PDT, 9:00 a.m. EDT. You may participate using the following dial-in information.
In the US and CANADA: 877-857-6173, passcode # 8119004
INTERNATIONAL participants: 719-325-4793, passcode # 8119004
A replay of the call will be available by phone for one week following the live call. The replay can be accessed using the following dial-in information.
In the US and CANADA: 888-203-1112, passcode # 8119004
INTERNATIONAL participants: 719-457-0820, passcode # 8119004
A live simulcast will also be available on the company website at www.o2micro.com, and an online replay will be available on the company's website for one week.
About O2Micro
Founded in April 1995, O2Micro develops and markets innovative power management and e-commerce components for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, and Power Management.
O2Micro International maintains an extensive portfolio of intellectual property with 19,795 patent claims granted, and over 20,000 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.
The O2Micro International Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6567
O2Micro, the O2Micro logo, and combinations thereof are registered trademarks of O2Micro. All other trademarks or registered trademarks are the property of their respective owners.
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 developments process, and errors in the products. You are also referred to the Form F-1 in connection with the company's initial public offering in August 2000, Form F-3 in connection with the company's public offering in November 2001, and the annual reports on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The company assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
| 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, | ||||
| 2012 | 2011 | |||
| NET SALES | $ 29,687 | $ 31,076 | ||
| COST OF SALES | 13,013 | 12,534 | ||
| GROSS PROFIT | 16,674 | 18,542 | ||
| OPERATING EXPENSES (INCOME) | ||||
| Research and development (1) | 8,623 | 8,417 | ||
| Selling, general and administrative (1) | 8,531 | 7,652 | ||
| Litigation income | (100) | (850) | ||
| Total Operating Expenses | 17,054 | 15,219 | ||
| INCOME (LOSS) FROM OPERATIONS | (380) | 3,323 | ||
| NON-OPERATING INCOME | ||||
| Interest income | 435 | 271 | ||
| Foreign exchange gain (loss) – net | 6 | (59 ) | ||
| Other – net | (110) | 3 | ||
| Total Non-operating Income | 331 | 215 | ||
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX | (49) | 3,538 | ||
| INCOME TAX EXPENSE | 245 | 359 | ||
| NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (294) | 3,179 | ||
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | 338 | (33) | ||
| NET INCOME | 44 | 3,146 | ||
| OTHER COMPREHENSIVE INCOME | ||||
| Unrealized gain on available-for-sale securities | 174 | 444 | ||
| Foreign currency translation adjustments | 510 | 223 | ||
| Unrealized pension gain | 4 | 4 | ||
| Total Other Comprehensive Income | 688 | 671 | ||
| COMPREHENSIVE INCOME | $ 732 | $ 3,817 | ||
| BASIC EARNINGS (LOSS) PER ADS | ||||
| Continuing operations | $ (0.01) | $ 0.09 | ||
| Discontinued operations | 0.01 | -- | ||
| $ -- | $ 0.09 | |||
| DILUTED EARNINGS (LOSS) PER ADS | ||||
| Continuing operations | $ (0.01) | $ 0.09 | ||
| Discontinued operations | 0.01 | -- | ||
| $ -- | $ 0.09 | |||
| ADS UNITS USED IN EARNINGS PER ADS CALCULATION: | ||||
| Basic (in thousands) | 31,736 | 33,509 | ||
| Diluted (in thousands) | 32,522 | 34,569 | ||
| (1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS: | ||||
| Research and development | $ 252 | $ 333 | ||
| Selling, general and administrative | $ 468 | $ 761 | ||
| O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (In Thousand U.S. Dollars, Except Share Amounts) | ||
| March 31, | December 31, | |
| 2012 | 2011 | |
| ASSETS | (Unaudited) | (Audited) |
| CURRENT ASSETS | ||
| Cash and cash equivalents | $ 20,636 | $ 32,562 |
| Restricted cash | 174 | 169 |
| Short-term investments | 99,503 | 93,016 |
| Accounts receivable – net | 15,530 | 12,062 |
| Inventories | 7,926 | 7,926 |
| Prepaid expenses and other current assets | 2,322 | 2,228 |
| Total Current Assets | 146,091 | 147,963 |
| LONG-TERM INVESTMENTS | 16,099 | 15,939 |
| PROPERTY AND EQUIPMENT – NET | 28,375 | 28,330 |
| OTHER ASSETS | ||
| Intangible assets | 1,481 | 1,565 |
| Other Assets | 4,779 | 4,614 |
| Total Other Assets | 6,260 | 6,179 |
| TOTAL ASSETS | $196,825 | $198,411 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Notes and accounts payable | $ 7,553 | $ 6,641 |
| Income tax payable | 552 | 606 |
| Accrued expenses and other current liabilities | 8,053 | 8,237 |
| Total Current Liabilities | 16,158 | 15,484 |
| OTHER LONG-TERM LIABILITIES | ||
| Accrued pension liabilities | 631 | 628 |
| Long-term income tax liabilities | 66 | 66 |
| Other liabilities | 129 | 129 |
| Total Other Long-Term Liabilities | 826 | 823 |
| Total Liabilities | 16,984 | 16,307 |
| 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 – 1,660,786,600 and 1,653,265,600 shares as of March 31, 2012 and December 31, 2011, respectively | 33 | 33 |
| Additional paid-in capital | 136,722 | 136,625 |
| Retained earnings | 42,702 | 42,658 |
| Accumulated other comprehensive income | 7,587 | 6,899 |
| Treasury stock – 79,242,450 and 47,990,100 shares as of March 31, 2012 and December 31, 2011, respectively | (7,203) | (4,111) |
| Total Shareholders' Equity | 179,841 | 182,104 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $196,825 | $198,411 |