GEORGE TOWN, Grand Cayman, Aug. 2, 2006 (PRIMEZONE) -- O2Micro(r) International Limited (Nasdaq:OIIM) (SEHK:0457), a leading supplier of innovative power management, and security components and systems, reported its financial results today for the second quarter ended June 30, 2006.
Net sales for the second quarter were $28 million. Second quarter revenue of $28 million was a decrease of 4% from the preceding quarter, and an increase of 9% from the comparable quarter of the prior year. Loss per American Depositary Share (ADS) for the second quarter, fully diluted, were 6 cents, compared to earnings per ADS of 3 cents in the preceding quarter and earnings per ADS of 7 cents in the comparable quarter of the prior year.
Net loss for the second quarter of $2.5 million was a decrease of $3.5 million from the preceding quarter, and a decrease of $5.5 million from the comparable quarter of the prior year. Second quarter R&D expenditures were $8.1 million, an increase of 14% from the preceding quarter, and an increase of 29% from the comparable quarter of the prior year.
Sterling Du, Chairman and CEO of O2Micro commented "O2Micro continues to build its base for future growth with our investment in O2Micro's Integrated Circuit (IC) test facility in China, close to customers and suppliers. This test facility will benefit long term profitability." Mr. Du added, "In O2Micro's ongoing effort to increase shareholder value, we continue to aggressively repurchase the Company's shares on the open market. We have repurchased 421,700 ADSs since Q1 to date."
Conference Call: O2Micro will hold its second quarter conference call today at 2:00 p.m. PDT, 5:00 p.m. EDT, and 5:00 a.m. (August 3, 2006) Hong Kong time. You may participate using the following dial-in information.
In the U.S. and Canada: 877-704-5379,
pass code No. 9213147
In Hong Kong: 800-965-503,
pass code No. 9213147
Other International participants: 913-312-1293,
pass code No. 92131471
A replay of the call will be available by phone until August 9th using the following dial-in information.
In the U.S. and Canada: 888-203-1112,
pass code No. 9213147
In Hong Kong: 800-908-709,
pass code No. 9213147
Other International participants: 719-457-0820,
pass code No. 9213147
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 5,147 patent claims granted, and over 7,000 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.
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 Six Months Ended
June 30, June 30,
------------------ ----------------
2006 2005 2006 2005
---- ---- ---- ----
NET SALES $28,029 $25,636 $57,138 $48,913
COST OF SALES 12,535 9,591 25,342 18,521
------- ------- ------- -------
GROSS PROFIT 15,494 16,045 31,796 30,392
------- ------- ------- -------
OPERATING EXPENSES
Research and development
(a) 8,106 6,260 15,222 11,590
Selling, general and
administrative (a) 6,811 5,096 13,395 9,760
Patent litigation 3,091 2,597 5,352 5,133
------- ------- ------- -------
Total Operating Expenses 18,008 13,953 33,969 26,483
------- ------- ------- -------
INCOME (LOSS) FROM
OPERATIONS ( 2,514) 2,092 ( 2,173) 3,909
------- ------- ------- -------
NON-OPERATING INCOME
(EXPENSES)
Interest income 970 684 1,869 1,292
Impairment loss on
long-term investments ( 756) -- ( 756) --
Foreign exchange gain
(loss) 89 ( 128) 120 ( 138)
Other - net ( 462) 80 ( 419) 68
------ ------- ------ -------
Total Non-operating
Income (expenses) ( 159) 636 814 1,222
------ ------- ------- -------
INCOME (LOSS) BEFORE
INCOME TAX ( 2,673) 2,728 ( 1,359) 5,131
INCOME TAX EXPENSE
(BENEFIT) ( 161) ( 252) 122 62
------ ------ ------- -------
NET INCOME (LOSS) ( 2,512) 2,980 ( 1,481) 5,069
OTHER COMPREHENSIVE
INCOME (LOSS)
Translation adjustments
on subsidiaries 105 ( 61) 335 168
Unrealized gain (loss)
on available-for-sale
securities 1,050 ( 584) 965 ( 300)
------- ------ ------- ------
Total Other
Comprehensive Income
(Loss) 1,155 ( 645) 1,300 ( 132)
----- ------ ------- ------
COMPREHENSIVE INCOME
(LOSS) ($1,357) $ 2,335 ($ 181) $ 4,937
====== ======= ====== =======
EARNINGS (LOSS ) PER
SHARE:
Basic ($0.0013) $0.0015 ($0.0008) $0.0026
======= ======= ======= =======
Diluted ($0.0013) $0.0015 ($0.0007) $0.0026
======= ======= ======= =======
EARNINGS (LOSS ) PER ADS
Basic ( $0.06) $0.08 ( $0.04) $0.13
====== ======= ====== =======
Diluted ( $0.06) $0.07 ( $0.04) $0.13
====== ======= ====== =======
SHARES USED IN EARNINGS
PER SHARE CALCULATION:
Basic (in thousands) 1,962,097 1,958,783 1,962,866 1,958,849
========= ========= ========= =========
Diluted (in thousands) 1,975,648 1,990,328 1,984,955 1,984,033
========= ========= ========= =========
ADS UNITS USED IN
EARNINGS PER ADS
CALCULATION:
Basic (in thousands) 39,242 39,176 39,257 39,177
======= ======= ======= =======
Diluted (in thousands) 39,513 39,807 39,699 39,681
======= ======= ======= =======
(a) INCLUDES STOCK-BASED
COMPENSATION CHARGE AS
FOLLOWS:
Research and development $ 349 $ -- $ 706 $ --
Selling, general and
administrative $ 419 $ -- $ 820 $ --
O2Micro International Limited and Subsidiaries
Consolidated Balance Sheets
(In Thousand U.S. Dollars, Except Share Amounts)
June 30, December 31,
2006 2005
A S S E T S (Unaudited)
----------- --------- ---------
CURRENT ASSETS
Cash and cash equivalents $ 60,452 $ 46,375
Restricted cash 2,621 5,605
Short-term investments 23,903 55,653
Accounts receivable - net 15,064 11,460
Inventories 14,853 15,943
Prepaid expenses and other current assets 7,409 6,665
--------- ---------
Total Current Assets 124,302 141,701
--------- ---------
LONG-TERM INVESTMENTS 20,397 16,898
--------- ---------
LAND, PROPERTY AND EQUIPMENT - NET 39,240 23,319
--------- ---------
OTHER ASSETS
Restricted assets - net 14,514 14,492
--------- ---------
Other Assets 3,352 3,245
--------- ---------
TOTAL ASSETS $ 201,805 $ 199,655
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes and accounts payable $ 9,370 $ 5,760
Income taxes payable 2,961 3,907
Accrued expenses and other current
liabilities 13,161 14,092
--------- ---------
Total Current Liabilities 25,492 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 - 1,952,446,750 and 1,967,824,350
shares as of June 30, 2006 and
December 31, 2005, respectively 39 39
Treasury stock - 695,000 and 15,030,000
shares as of June 30, 2006 and December 31,
2005, respectively ( 104) ( 3,296)
Additional paid-in capital 142,123 141,532
Accumulated other comprehensive gain (loss) 182 ( 1,118)
Retained earnings 34,073 38,739
--------- ---------
Total Shareholders' Equity 176,313 175,896
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 201,805 $ 199,655
========= =========