GEORGE TOWN, Grand Cayman, Jan. 31, 2007 (PRIME NEWSWIRE) -- 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 fourth quarter and fiscal year ended December 31, 2006.
Net sales for the fourth quarter were $36.3 million. Fourth quarter revenue of $36.3 million was an increase of 15.4% from the preceding quarter and an increase of 27% from the comparable quarter of the prior year. Earnings per American Depositary Share (ADS) for the fourth quarter, fully diluted, were 4 cents, compared to 1 cent per ADS in the preceding quarter and the comparable quarter of the prior year.
Net income for the fourth quarter of $1.7 million was an increase of $1.1 million from the preceding quarter and an increase of $1.4 million from the comparable quarter of the prior year. Fourth quarter R&D expenditures were $8.7 million, an increase of 12.3% from the preceding quarter, and an increase of 21.2% from the comparable quarter of the prior year.
For the fiscal year ended December 31, 2006, total revenues were $124.9 million, an increase of 18.3% from $105.6 million in fiscal year 2005. Earnings per ADS for the year ended December 31, 2006 were 2 cents, fully diluted, compared to 20 cents, fully diluted, for the previous year. Net income was $743,000, compared to $8.1 million for the previous year. R&D expenditures were $31.8 million, compared to $25.4 million for the previous year, an increase of 24.9%.
"Q4 revenue growth of 15.4% over the prior quarter, and fiscal year 2006 revenue increase of 18.3% from the previous year, reflects growth and market share gain in our core markets as well as expansion of revenue from new products," commented Sterling Du, Chairman and CEO of O2Micro. Mr. Du continued, "The Company continued its ongoing effort to increase shareholder value through the introduction of innovative technologies and by increasing the company's patent portfolio, from 239 in Q3 to 260 in Q4, 2006. We continue to build our base for future growth and long term profitability with our investment in O2Micro's Integrated Circuit (IC) test facility in China, close to customers and suppliers."
Conference Call: O2Micro will hold its fourth quarter conference call today at 2:00 p.m. PST, 5:00 p.m. EST, and 6:00 a.m. (February 1, 2007) Hong Kong time. You may participate using the following dial-in information.
In the U.S. and CANADA: 866-288-0540, pass code no. 6558954 In HONG KONG: 800-965-503, pass code no. 6558954 Other INTERNATIONAL participants: 913-312-6666, pass code no. 6558954
A replay of the call will be available by phone until February 7th using the following dial-in information.
In the U.S. and CANADA: 888-203-1112, pass code no. 6558954 In HONG KONG: 800-908-709, pass code no. 6558954 Other INTERNATIONAL participants: 719-457-0820, pass code no. 6558954
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 6,461 patent claims granted, and over 8,000 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, long term profitability, increases in shareholder value, 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
(In Thousand U.S. Dollars, Except Per Share Amounts)
Three Months Ended Year Ended
December
December 31, December 31,
2006 2005 2006 2005
---- ---- ---- ----
Unaudited Unaudited
NET SALES $36,315 $28,592 $124,915 $105,552
COST OF SALES 16,746 11,482 56,772 40,741
-------- -------- -------- --------
GROSS PROFIT 19,569 17,110 68,143 64,811
-------- -------- -------- --------
OPERATING EXPENSES
Research and development (a) 8,745 7,214 31,751 25,421
Selling, general and
administrative (a) 8,563 5,456 29,209 20,279
Patent related litigation 2,102 2,325 10,962 10,174
-------- -------- -------- --------
Total Operating Expenses 19,410 14,995 71,922 55,874
-------- -------- -------- --------
INCOME (LOSS) FROM OPERATIONS 159 2,115 ( 3,779) 8,937
-------- -------- -------- --------
NON-OPERATING INCOME (EXPENSES)
Interest income 856 882 3,627 2,824
Impairment loss on long-term
investments - - ( 756) -
Foreign exchange gain (loss) 214 66 ( 261) ( 443)
Other -- net 13 ( 2,297) ( 538) ( 2,137)
-------- -------- -------- --------
Total Non-operating Income 1,083 ( 1,349) 2,072 244
-------- -------- -------- --------
INCOME (LOSS) BEFORE
INCOME TAX 1,242 766 ( 1,707) 9,181
INCOME TAX EXPENSE (BENEFIT) ( 432) 540 ( 2,450) 1,034
-------- -------- -------- --------
NET INCOME 1,674 226 743 8,147
OTHER COMPREHENSIVE INCOME (LOSS)
Translation adjustments on
subsidiaries 365 ( 406) 695 ( 238)
Unrealized loss on
available-for-sale
securities ( 293) ( 470) ( 205) ( 770)
-------- -------- -------- --------
Total Other Comprehensive
Income (Loss) 72 ( 876) 490 ( 1,008)
-------- -------- -------- --------
COMPREHENSIVE INCOME (LOSS) $ 1,746 ($ 650) $ 1,233 $ 7,139
======== ======== ======== ========
EARNINGS PER SHARE:
Basic $0.0009 $0.0001 $0.0004 $0.0042
======== ======== ======== ========
Diluted $0.0009 $0.0001 $0.0004 $0.0041
======== ======== ======== ========
EARNINGS PER ADS
Basic $0.04 $0.01 $0.02 $0.21
======== ======== ======== ========
Diluted $0.04 $0.01 $0.02 $0.20
======== ======== ======== ========
SHARES USED IN EARNINGS PER SHARE CALCULATION:
Basic (in thousands) 1,906,970 1,962,519 1,932,575 1,961,168
========= ========= ========= ========
Diluted (in thousands) 1,912,792 1,995,056 1,946,211 1,997,459
========= ========= ========= =========
ADS UNITS USED IN EARNINGS PER ADS CALCULATION:
Basic (in thousands) 38,139 39,250 38,652 39,223
========= ========= ========= =========
Diluted (in thousands) 38,256 39,901 38,924 39,949
========= ========= ========= =========
(a) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:
Research and development $ 246 $ - $ 1,181 $ -
Selling, general and
administrative $ 312 $ - $ 1,408 $ -
O2Micro International Limited and Subsidiaries
Consolidated Balance Sheets
(In Thousand U.S. Dollars, Except Share Amounts)
December 31, December 31,
2006 2005
---- ----
ASSETS
------
CURRENT ASSETS
Cash and cash equivalents $ 45,438 $ 46,375
Restricted cash 8,342 5,605
Short-term investments 19,697 55,653
Accounts receivable -- net 18,987 11,460
Inventories 14,076 15,943
Prepaid expenses and other
current assets 7,379 6,665
--------- ---------
Total Current Assets 113,919 141,701
--------- ---------
LONG-TERM INVESTMENTS 24,059 16,898
--------- ---------
LAND, PROPERTY AND EQUIPMENT -- NET 41,427 23,319
--------- ---------
OTHER ASSETS
Restricted assets -- net 14,540 14,492
--------- ---------
Other Assets 3,075 3,245
--------- ---------
TOTAL ASSETS $ 197,020 $ 199,655
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Notes and accounts payable $ 9,851 $ 5,760
Income taxes payable 991 3,907
Accrued expenses and other current
liabilities 12,212 14,092
--------- ---------
Total Current Liabilities 23,054 23,759
--------- ---------
ACCRUED RETIREMENT BENEFIT COSTS 455 -
--------- ---------
Total Liabilities 23,509 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 -- 1,906,969,950 and 1,967,824,350
shares as of December 31, 2006 and
December 31, 2005, respectively 38 39
Treasury stock -- 15,030,000 shares as of
December 31, 2005 - ( 3,296)
Additional paid-in capital 140,224 141,532
Accumulated other comprehensive loss ( 628) ( 1,118)
Retained earnings 33,877 38,739
--------- ---------
Total Shareholders' Equity 173,511 175,896
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 197,020 $ 199,655
========= =========