GEORGE TOWN, Grand Cayman, May 3, 2006 (PRIMEZONE) -- O2Micro(r) International Limited (Nasdaq:OIIM) (SEHK:0457), a leading supplier of innovative power management and security components and systems for the Computer, Consumer, Industrial, and Communications markets, reported its financial results today for the first quarter ended March 31, 2006.
Net sales for the first quarter were a record high of $29.1 million. First quarter revenue of $29.1 million was an increase of 1.8% from the preceding quarter, and an increase of 25% from the comparable quarter of the prior year. Earnings per American Depositary Share (ADS) for the first quarter, fully diluted, were 3 cents, compared to 1 cent per ADS in the preceding quarter and 5 cents per ADS in the comparable quarter of the prior year.
Net income for the first quarter of $1.0 million was an increase of 356% from the preceding quarter, and a decrease of 51% from the comparable quarter of the prior year. First quarter R&D expenditures were $6.8 million, a decrease of 6% from the preceding quarter, and an increase of 27% from the comparable quarter of the prior year.
"In Q1, O2Micro was again profitable. The Company continues to build its base for future growth with additions to key engineering resources, and product and patent portfolios. During Q1, O2Micro received patent issues of 15 patents with 349 claims. As of this date O2Micro has 184 issued patents with 4,733 issued claims," commented 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, and 5:00 a.m. (May 4, 2006) Hong Kong time. You may participate using the following dial-in information.
In the U.S. and CANADA: 888-802-2239, pass code No. 2347111 In HONG KONG: 800-965-503, pass code No. 2347111 Other INTERNATIONAL participants: 913-312-1269, pass code No. 2347111
A replay of the call will be available by phone until May 10th using the following dial-in information.
In the U.S. and CANADA: 888-203-1112, pass code No. 2347111 In HONG KONG: 800-908-709, pass code No. 2347111 Other INTERNATIONAL participants: 719-457-0820, pass code No. 2347111
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 and systems for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, SmartCardBus(r) and Security products, such as VPN/Firewall system solutions.
O2Micro International maintains an extensive portfolio of intellectual property with 4,733 patent claims granted, and over 5,000 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.
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They include statements regarding O2Micro's future growth, expansion of O2Micro's product and patent portfolios, legal expenditures, litigation activity and other statements regarding O2Micro's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future. 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 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
--------
2006 2005
---- ----
NET SALES $29,109 $23,277
COST OF SALES 12,807 8,930
--------- ---------
GROSS PROFIT 16,302 14,347
--------- ---------
OPERATING EXPENSES
Research and development 6,788 5,330
Selling, general and administrative 6,223 4,664
Patent litigation 2,261 2,536
Stock-based compensation 689 0
--------- ---------
Total Operating Expenses 15,961 12,530
--------- ---------
INCOME FROM OPERATIONS 341 1,817
--------- ---------
NON-OPERATING INCOME (EXPENSES)
Interest income 899 608
Foreign exchange gain (loss) 31 ( 10)
Other - net 43 ( 12)
--------- ---------
Total Non-operating Income 973 586
--------- ---------
INCOME BEFORE INCOME TAX 1,314 2,403
INCOME TAX EXPENSE 283 314
--------- ---------
NET INCOME 1,031 2,089
OTHER COMPREHENSIVE INCOME
Translation adjustments on subsidiaries 230 229
Unrealized gain (loss) on
available-for-sale securities ( 85) 284
--------- ---------
Total Other Comprehensive Income (Loss) 145 513
--------- ---------
COMPREHENSIVE INCOME $ 1,176 $ 2,602
========= =========
EARNINGS PER SHARE:
Basic $ 0.0005 $ 0.0010
========= =========
Diluted $ 0.0005 $ 0.0010
========= =========
EARNINGS PER ADS:
Basic 0.03 0.05
Diluted 0.03 0.05
SHARES USED IN EARNINGS PER
SHARE CALCULATION:
Basic (in thousands) 1,963,634 1,958,900
========= =========
Diluted (in thousands) 1,994,263 1,978,550
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ADS UNITS USED IN EARNINGS
PER ADS CALCULATION:
Basic (in thousands) 39,273 39,178
Diluted (in thousands) 39,885 39,571
O2Micro International Limited and Subsidiaries
Consolidated Balance Sheets
(In Thousand U.S. Dollars, Except Share Amounts)
March 31, Dec. 31,
2006 2005
---- ----
A S S E T S (Unaudited)
-----------
CURRENT ASSETS
Cash and cash equivalents $ 58,846 $ 46,375
Restricted cash 5,614 5,605
Short-term investments 40,728 55,653
Accounts receivable - net 14,217 11,460
Inventories 14,721 15,943
Prepaid expenses and other current
assets 7,087 6,665
--------- ---------
Total Current Assets 141,213 141,701
--------- ---------
LONG-TERM INVESTMENTS 16,828 16,898
--------- ---------
LAND, PROPERTY AND EQUIPMENT - NET 23,988 23,319
--------- ---------
OTHER ASSETS
Restricted assets - net 14,575 14,492
--------- ---------
Other Assets 3,286 3,245
--------- ---------
TOTAL ASSETS $ 199,890 $ 199,655
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes and accounts payable $ 6,563 $ 5,760
Income taxes payable 4,059 3,907
Accrued expenses and other current
liabilities 11,301 14,092
--------- ---------
Total Current Liabilities 21,923 23,759
--------- ---------
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 - 1,954,167,750 and
1,967,824,350 shares as of
March 31, 2006 and December 31,
2005, respectively 39 39
Treasury stock - 0 and 15,030,000
shares as of March 31, 2006 and
December 31, 2005, respectively - ( 3,296)
Additional paid-in capital 141,444 141,532
Accumulated other comprehensive loss ( 972) ( 1,118)
Retained earnings 37,456 38,739
--------- ---------
Total Shareholders' Equity 177,967 175,896
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 199,890 $ 199,655
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