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Financial Results for the Third Quarter ending 9/30/2009:
O2Micro(R) International reported Q3 2009 GAAP revenue of $36.7 million. Q3 revenue increased by 6.0% from Q2 2009 and decreased by 3.0% from Q3 2008. The sequential increase was a function of seasonal demand for core power management products.
The GAAP gross margin was 60.6% in the third quarter of 2009. The gross margin compares favorably to both the second quarter and the year-ago period when the company recorded gross margins of 58.8% and 59.3%, respectively.
During Q3, the company recorded $21.9 million in GAAP operating expenses. This was up from $20.5 million in Q2 2009 and $21.7 million in Q3 2008. The SG&A expense was $13.4 million of the total operating expenses and increased from $12.5 million in Q2 and $8.9 million in the year-ago period. R&D expense was $8.5 million of total operating expenses in the third quarter, compared to $8.0 million in Q2 and $9.8 million in the comparable year-ago period. During the third quarter of 2008, the company also expensed $2.9 million for a one-time write-off of prepaid foundry services where there was no comparable expense in Q2 or Q3 2009.
GAAP income from operations was $352,000 in the third quarter of 2009. This compares with a GAAP loss from operations of $109,000 in the second quarter and GAAP income from operations of $719,000 in the year-ago period. This represents 1.0% of revenue in the recent quarter and (0.3%) and 1.9% in Q2 2009 and Q3 2008, respectively.
GAAP Net Income was $267,000 in Q3 2009. This compares favorably to GAAP Net Losses of $505,000 in Q2 and $12.6 million in Q3 2008. GAAP Net Income per fully diluted ADS was $0.01 in Q3 2009. This reverses losses per ADS of $0.01 and $0.34 in Q2 and the year-ago period, respectfully.
Financial Results for the Nine Months ending 9/30/2009:
For the nine months ending September 30, 2009, O2Micro(R) International reported GAAP revenue of $94.4 million versus $116.1 million for the corresponding nine months of 2008.
The GAAP gross margin for the first nine months of 2009 was 58.7%. This is consistent with the GAAP gross margin of 58.6% in the first nine months of 2008.
GAAP operating expenses were $59.1 million for the first nine months of 2009 and $60.7 million for the corresponding period in 2008. The operating loss was $3.7 million for the first nine months of 2009, compared to operating income of $7.4 million in the comparable year-ago period. The operating margins were (3.9%) and 6.4% of nine month revenue in 2009 and 2008, respectively.
GAAP Net Loss was $3.8 million and $5.9 million for the first nine months of 2009 and 2008, respectively. The Net Losses per ADS were $0.10 for the first nine months of 2009 and $0.16 for the corresponding period in 2008.
Supplementary Data:
The company ended the third quarter of 2009 with $124.5 million in working capital. This included unrestricted cash and investments of $120.7 million and the company did not have any debt. The unrestricted cash and investments amounted to $3.26 per ADS. The accounts receivable balance was $15.2 million as of 9/30/09 and there were 36 days sales outstanding. Inventory was $11.1 million as of 9/30/09 and turned over 4.7 times during the quarter. Total shareholder's equity was $180.0 million as of September 30th 2009 and the book value per ADS was $4.86.
As of September 30th 2009, O2Micro(R) International also counted 849 employees, including 538 engineers.
Management Commentary:
Sterling Du, Chairman and CEO, commented, "Our business has rebounded nicely from the low points of several quarters earlier. Now, our focus is to increase our profitability by leveraging our traditional strength in power management ICs."
Conference Call: O2Micro will hold its third quarter conference call at 2:00 p.m. PST, 5:00 p.m. EST. You may participate using the following dial-in information.
In the US and CANADA: 888-300-2343, pass code #6498254 INTERNATIONAL participants: 719-457-2643, pass code #6498254
A replay of the call will be available by phone until November 11th using the following dial-in information.
In the US and CANADA: 888-203-1112, pass code #6498254 INTERNATIONAL participants: 719-457-0820, pass code #6498254
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(R) products.
O2Micro International maintains an extensive portfolio of intellectual property with 13,058 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.
The O2Micro International Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6567
O2Micro, the O2Micro logo, SmartCardBus, and combinations thereof are registered trademarks of O2Micro. All other trademarks are the property of their respective owners.
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 Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
NET SALES $ 36,664 $ 37,787 $ 94,379 $ 116,133
COST OF SALES 14,450 15,383 38,983 48,040
--------- --------- --------- ---------
GROSS PROFIT 22,214 22,404 55,396 68,093
--------- --------- --------- ---------
OPERATING EXPENSES (INCOME)
Research and development (1) 8,481 9,813 24,463 29,026
Selling, general and
administrative (1) 13,381 8,930 34,633 30,691
Write-off of prepayments to
foundry services -- 2,942 -- 2,942
Litigation income -- -- -- (2,000)
--------- --------- --------- ---------
Total Operating Expenses 21,862 21,685 59,096 60,659
--------- --------- --------- ---------
INCOME (LOSS) FROM OPERATIONS 352 719 (3,700) 7,434
--------- --------- --------- ---------
NON-OPERATING INCOME (LOSS)
Interest income 329 547 1,157 1,710
Foreign exchange gain (loss) (43) (93) 39 (522)
Impairment loss on long-term
investments -- (13,073) -- (13,073)
Other - net 46 20 7 29
--------- --------- --------- ---------
Total Non-operating
Income (Loss) 332 (12,599) 1,203 (11,856)
--------- --------- --------- ---------
INCOME (LOSS) BEFORE
INCOME TAX 684 (11,880) (2,497) (4,422)
INCOME TAX EXPENSE 417 689 1,282 1,525
--------- --------- --------- ---------
NET INCOME (LOSS) 267 (12,569) (3,779) (5,947)
OTHER COMPREHENSIVE
INCOME (LOSS)
Foreign currency
translation adjustments 346 (820) 257 1,797
Unrealized gain (loss) on
available-for-sale
securities 181 (1,623) 933 (4,715)
Unrealized pension gain 2 -- 5 --
--------- --------- --------- ---------
Total Other Comprehensive
Income (Loss) 529 (2,443) 1,195 (2,918)
--------- --------- --------- ---------
COMPREHENSIVE INCOME (LOSS) $ 796 $ (15,012) $ (2,584)$ (8,865)
========= ========= ========= =========
EARNINGS (LOSS) PER SHARE:
Basic $ 0.0001 $ (0.0068) $ (0.0020)$ (0.0032)
========= ========= ========= =========
Diluted $ 0.0001 NA NA NA
=========
EARNINGS (LOSS) PER ADS
Basic $ 0.01 $ (0.34) $ (0.10)$ (0.16)
========= ========= ========= =========
Diluted $ 0.01 NA NA NA
=========
SHARES USED IN EARNINGS
(LOSS) PER SHARE
CALCULATION:
Basic (in thousands) 1,849,888 1,845,031 1,844,977 1,872,860
========= ========= ========= =========
Diluted (in thousands) 1,884,718 1,848,713 1,867,366 1,880,790
========= ========= ========= =========
ADS UNITS USED IN EARNINGS
(LOSS) PER ADS CALCULATION:
Basic (in thousands) 36,998 36,901 36,900 37,457
========= ========= ========= =========
Diluted (in thousands) 37,694 36,974 37,347 37,616
========= ========= ========= =========
(1) INCLUDES STOCK-BASED
COMPENSATION CHARGE
AS FOLLOWS:
Research and development $ 297 $ 284 $ 913 $ 830
Selling, general and
administrative $ 563 $ 429 $ 1,672 $ 1,277
O2Micro International Limited and Subsidiaries
Consolidated Balance Sheets
(In Thousand U.S. Dollars, Except Share Amounts)
Sept. 30, Dec. 31,
2009 2008
---- ----
ASSETS (Unaudited)
------
CURRENT ASSETS
Cash and cash equivalents $ 33,788 $ 31,844
Restricted cash 1,159 1,153
Short-term investments 86,936 72,344
Accounts receivable - net 15,225 10,578
Inventories 11,147 16,388
Prepaid expenses and other current assets 2,520 2,314
-------- --------
Total Current Assets 150,775 134,621
LONG-TERM INVESTMENTS 14,116 13,199
PROPERTY AND EQUIPMENT - NET 31,658 34,353
OTHER ASSETS
Restricted assets - net 1,435 1,411
Intangible assets 4,432 4,929
Other Assets 4,721 4,760
-------- --------
TOTAL ASSETS $207,137 $193,273
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Notes and accounts payable $ 9,607 $ 4,120
Income tax payable 311 226
Accrued expenses and other current liabilities 16,369 8,269
-------- --------
Total Current Liabilities 26,287 12,615
OTHER LONG-TERM LIABILITIES
Accrued pension liabilities 512 553
FIN 48 tax liabilities 315 302
Other liabilities 23 23
-------- --------
Total Other Long-Term Liabilities 850 878
Total Liabilities 27,137 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 - 1,851,054,600 and 1,832,788,400 shares
as of September 30, 2009 and
December 31, 2008, respectively 37 37
Additional paid-in capital 144,923 141,784
Retained earnings 32,967 36,746
Accumulated other comprehensive income 2,408 1,213
Treasury stocks - 3,250,000 shares and nil as of
September 30, 2009 and December 31, 2008,
respectively (335) --
-------- --------
Total Shareholders' Equity 180,000 179,780
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $207,137 $193,273
======== ========
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: O2Micro International Limited
CONTACT: O2Micro Gary E. Abbott, Director of Investor Relations 408.987.5920, x8888 gary.abbott@o2micro.com
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