GEORGE TOWN, Grand Cayman, Aug. 1, 2012 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM), a global leader in the design, development and marketing of high-performance integrated circuits and solutions, reported its financial results today for the second quarter of 2012, ending June 30, 2012.
Financial Highlights for the Second Quarter ending June 30, 2012:
O2Micro International Limited reported Q2 2012 revenue of $28.3 million. Revenue was down 5% sequentially and down 13% from the comparable year-ago quarter. The gross margin in the second quarter of 2012 was 55.7%. The gross margin was down from 56.2% in the prior quarter and down from 57.2% in the second quarter of 2011. The gross margin remains in our target range and varies primarily with revenue level and product mix. During the second quarter of 2012, the company recorded total GAAP operating expenses of $27.2 million, compared to $17.1 million in the first quarter of 2012 and $15.6 million in the year-ago Q2 period. Operating expenses in the second quarter of 2012 include a litigation provision of $9.4 million. The respective GAAP operating margins for the second quarter of 2012, the first quarter of 2012 and second quarter of 2011 were (40.3)%, (1.3%), and 9.1%.
GAAP net loss was $10.9 million in Q2 2012. This compares to GAAP net income of $44,000 in the first quarter of 2012 and GAAP net income of $3.0 million in Q2 2011. GAAP net loss per fully diluted ADS was $0.35 in Q2 2012. This compares to GAAP net income per fully diluted ADS of $0.00 in Q1 2012 and $0.09 in Q2 2011.
Financial Highlights for the Six Months ending June 30, 2012:
O2Micro International Limited reported revenue of $58.0 million for the six months ending June 30, 2012. This was down 9% from $63.6 million in the comparable six months of 2011. The gross margins were 56.0% and 58.4% during the corresponding periods of 2012 and 2011, respectively. GAAP operating expenses were $44.3 million and $30.9 million in the first half of 2012 and 2011, respectively. The respective GAAP operating margins for the comparable periods were (20.4%) and 9.9%. Pretax loss from continuing operations was $11.2 million in the first half of 2012. This compares to pretax income from continuing operations of $6.8 million in the first half of 2011. GAAP net loss was $10.9 million in 1H 2012. This compares to GAAP net income of $6.1 million in 1H 2011. The GAAP net loss per fully diluted ADS was $0.35 in the first six months of 2012. This compares to GAAP net earnings per fully diluted ADS of $0.18 in the corresponding first half of 2011.
The year-to-year declines in revenue, GAAP income/loss from operations, and GAAP net income/loss reflect adverse global economic conditions and the litigation provision when compared with the year-ago.
Supplementary Data:
The company ended the second quarter of 2012 with $119.5 million in unrestricted cash and short-term investments or $3.83 per outstanding ADS. The accounts receivable balance was $15.2 million and represented 49 days sales outstanding at the end of Q2 2012. Inventory was $8.2 million or 58 days and turned over 6.2 times during Q2 2012. As of June 30, 2012, the company had $127.9 million in working capital and the book value was $167.3 million, or $5.36 per outstanding ADS.
As of June 30, 2012, O2Micro International Limited counted 821 employees, including 463 engineers.
Management Commentary:
Sterling Du, Chairman and CEO, commented, "In spite of the macro-economic setbacks in the quarter, we continue to move forward confidently and take the right steps to strengthen our business and enhance shareholder value. We are especially enthusiastic about new key customer program ramps that we anticipate will support growth beginning later this year and continuing into calendar year 2013."
Conference Call: O2Micro will hold its second quarter conference call today, August 1, 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: | 866-719-0110, passcode # 8141652 |
| INTERNATIONAL participants: | 719-234-0008, passcode # 8141652 |
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 # 8141652 |
| INTERNATIONAL participants: | 719-457-0820, passcode # 8141652 |
A live webcast 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 20,690 patent claims granted, and over 21,000 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, and combinations thereof are registered trademarks of O2Micro. All other trademarks or registered trademarks are the property of their respective owners.
The O2Micro International Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6567
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 STATEMENT 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, | |||||||
| 2012 | 2011 | 2012 | 2011 | |||||
| NET SALES | $ 28,313 | $ 32,495 | $ 58,000 | $ 63,571 | ||||
| COST OF SALES | 12,530 | 13,897 | 25,543 | 26,431 | ||||
| GROSS PROFIT | 15,783 | 18,598 | 32,457 | 37,140 | ||||
| OPERATING EXPENSES (INCOME) | ||||||||
| Research and development (1) | 8,842 | 8,177 | 17,465 | 16,594 | ||||
| Selling, general and administrative (1) | 8,942 | 7,467 | 17,473 | 15,119 | ||||
| Provision for litigation | 9,422 | -- | 9,422 | -- | ||||
| Litigation income | -- | -- | (100) | (850) | ||||
| Total Operating Expenses | 27,206 | 15,644 | 44,260 | 30,863 | ||||
| INCOME (LOSS) FROM OPERATIONS | (11,423) | 2,954 | (11,803) | 6,277 | ||||
| NON-OPERATING INCOME | ||||||||
| Interest income | 441 | 292 | 876 | 563 | ||||
| Foreign exchange loss – net | (134) | (141) | (244) | (200) | ||||
| Other – net | 8 | 131 | 14 | 134 | ||||
| Total Non-operating Income | 315 | 282 | 646 | 497 | ||||
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX |
(11,108) | 3,236 | (11,157) | 6,774 | ||||
| INCOME TAX EXPENSE | 299 | 304 | 544 | 663 | ||||
| NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (11,407) | 2,932 | (11,701) | 6,111 | ||||
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | 465 | 29 | 803 | (4 ) | ||||
| NET INCOME (LOSS) | (10,942) | 2,961 | (10,898) | 6,107 | ||||
| OTHER COMPREHENSIVE INCOME | ||||||||
| Foreign currency translation adjustments | (249) | 852 | 261 | 1,075 | ||||
| Unrealized gain (loss) on available-for-sale securities | (121) | (811) | 53 | (367) | ||||
| Unrealized pension gain | 4 | 4 | 8 | 8 | ||||
| Total Other Comprehensive Income (Loss) | (366) | 45 | 322 | 716 | ||||
| COMPREHENSIVE INCOME (LOSS) | $ (11,308) | $ 3,006 | $ (10,576) | $ 6,823 | ||||
| BASIC EARNINGS (LOSS) PER ADS | ||||||||
| Continuing operations | $ (0.35) | $ 0.09 | $ (0.35) | $ 0.18 | ||||
| Discontinued operations | -- | -- | -- | -- | ||||
| $ (0.35) | $ 0.09 | $ (0.35) | $ 0.18 | |||||
| DILUTED EARNINGS (LOSS) PER ADS | ||||||||
| Continuing operations | $ (0.35) | $ 0.09 | $ (0.35) | $ 0.18 | ||||
| Discontinued operations | -- | -- | -- | -- | ||||
| $ (0.35) | $ 0.09 | $ (0.35) | $ 0.18 | |||||
| ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION: | ||||||||
| Basic (in thousands) | 31,591 | 33,275 | 31,446 | 33,392 | ||||
| Diluted (in thousands) | 31,591 | 34,114 | 31,446 | 34,342 | ||||
| (1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS: | ||||||||
| Research and development | $ 251 | $ 407 | $ 503 | $ 740 | ||||
| Selling, general and administrative | $ 570 | $ 543 | $ 1,038 | $ 1,304 | ||||
| O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES | ||||
| CONSOLIDATED BALANCE SHEET | ||||
|
(In Thousand U.S. Dollars, Except Share Amounts) |
||||
| June 30, | December 31, | |||
| 2012 | 2011 | |||
| ASSETS | (Unaudited) | (Audited) | ||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | $ 23,719 | $ 32,562 | ||
| Restricted cash | 172 | 169 | ||
| Short-term investments | 95,820 | 93,016 | ||
| Accounts receivable – net | 15,230 | 12,062 | ||
| Inventories | 8,243 | 7,926 | ||
| Prepaid expenses and other current assets | 2,208 | 2,228 | ||
| Total Current Assets | 145,392 | 147,963 | ||
| LONG-TERM INVESTMENTS | 15,972 | 15,939 | ||
| PROPERTY AND EQUIPMENT – NET | 27,712 | 28,330 | ||
| OTHER ASSETS | ||||
| Intangible assets | 1,396 | 1,565 | ||
| Other Assets | 4,544 | 4,614 | ||
| Total Other Assets | 5,940 | 6,179 | ||
| TOTAL ASSETS | $195,016 | $198,411 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Notes and accounts payable | $ 7,829 | $ 6,641 | ||
| Income tax payable | 533 | 606 | ||
| Accrued expenses and other current liabilities | 9,164 | 8,237 | ||
| Total Current Liabilities | 17,526 | 15,484 | ||
| OTHER LONG-TERM LIABILITIES | ||||
| Accrued pension liabilities | 618 | 628 | ||
| Long-term income tax liabilities | 66 | 66 | ||
| Other liabilities | 9,551 | 129 | ||
| Total Other Long-Term Liabilities | 10,235 | 823 | ||
| Total Liabilities | 27,761 | 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 June 30, 2012 and December 31, 2011, respectively | 33 | 33 | ||
| Additional paid-in capital | 137,386 | 136,625 | ||
| Retained earnings | 31,760 | 42,658 | ||
| Accumulated other comprehensive income | 7,221 | 6,899 | ||
|
Treasury stock – 100,130,650 and 47,990,100 shares as of June 30, 2012 and December 31, 2011,respectively |
(9,145) | (4,111) | ||
| Total Shareholders' Equity | 167,255 | 182,104 | ||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $195,016 | $198,411 | ||