GEORGE TOWN, Grand Cayman, Nov. 4, 2015 (GLOBE NEWSWIRE) --
Operational and Strategic Highlights:
- Company experienced strong design activity in solutions for
backlighting, general lighting, and battery markets
- Expects revenue to be flat to down 7 percent sequentially in
the fourth quarter of fiscal year 2015.
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 third quarter of 2015, ending September 30, 2015.
Financial Highlights for the Third Quarter ending
September 30, 2015:
O2Micro International Limited reported Q3 2015 revenue of $13.7
million. Revenue was down 7% sequentially and down 11% from the
comparable year-ago quarter. The gross margin in the third quarter
of 2015 was 52.0%. The gross margin was up from 49.6% in the prior
quarter and up from 51.8% in the third quarter of 2014. The gross
margin remains in our target range and varies primarily with
revenue level and product mix. During the third quarter of 2015,
the company recorded total GAAP operating expenses of $10.5
million, compared to $10.2 million in the second quarter of 2015
and $11.5 million in the year-ago Q3 period. The respective GAAP
operating margins for the third quarter of 2015, the second quarter
of 2015, and third quarter of 2014 were (25.0%), (19.6%), and
(23.0%).
GAAP net loss was $2.4 million in Q3 2015. This compares to a
GAAP net loss of $2.7 million in the second quarter of 2015 and a
GAAP net loss of $2.9 million in Q3 2014. GAAP net loss per fully
diluted ADS was $0.09 in Q3 2015. This compares to a GAAP net loss
per fully diluted ADS of $0.10 in Q2 2015 and a GAAP net loss per
fully diluted ADS of $0.11 in Q3 2014.
Financial Highlights for the Nine Months ending
September 30, 2015:
O2Micro International Limited reported revenue of $41.5 million
for the nine months ending September 30, 2015. This was down 15.8%
from $49.3 million in the comparable nine months of 2014. The gross
margins were 50.5% and 51.6% during the corresponding periods of
2015 and 2014, respectively. GAAP operating expenses were $30.8
million and $35.2 million in the first nine months of 2015 and
2014, respectively. The respective GAAP operating margins for the
comparable periods were (23.8%) and (19.8%). Pretax loss from
operations was $7.5 million in the first nine months of 2015. This
compares to a pretax loss from operations of $8.3 million in the
first nine months of 2014. GAAP net loss was $8.3 million in the
first nine months of 2015. This compares to a GAAP net loss of $9.0
million in the first nine months of 2014. The GAAP net loss per
fully diluted ADS was $0.32 in the first nine months of 2015. This
compares to a GAAP net loss per fully diluted ADS of $0.33 in the
first nine months of 2014.
Supplementary Data:
The company ended the third quarter of 2015 with $55.0 million
in unrestricted cash and short-term investments or $2.13 per
outstanding ADS. The accounts receivable balance was $7.0 million
and represented 48 days sales outstanding at the end of Q3 2015.
Inventory was $9.2 million or 121 days and turned over 3.0 times
during Q3 2015. As of September 30, 2015, the company had $63.9
million in working capital and the book value was $96.1 million, or
$3.72 per outstanding ADS.
As of September 30, 2015, O2Micro International Limited counted
404 employees, including 214 engineers.
Management Commentary:
"Our third quarter results were in-line with the updated
guidance that we provided in early October and reflect a difficult
quarter in our target market segments," said Sterling Du, O2Micro's
Chairman and CEO. "During this difficult period of revenue
weakness, the Company will continue the cost saving programs and
improve the operating efficiency to meet the challenges. As we
control our expenses, we will continue our efforts to develop
innovative technologies and products that we believe will produce
our next generation of relevant, competitive products that will
drive growth."
Conference Call: O2Micro will hold its third
quarter conference call today, November 4, 2015, at 6:00 a.m. PST,
9:00 a.m. EST. You may participate using the following dial-in
information.
In the US and CANADA: |
800-505-9568, pass code #967965 |
INTERNATIONAL participants: |
416-204-9271, pass code #967965 |
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, pass code #967965 |
INTERNATIONAL participants: |
719-457-0820, pass code #967965 |
A live webcast will also be available on the company website at
www.o2micro.com, and an online replay will be available for one
week.
About O2Micro
Founded in April 1995, O2Micro develops and markets innovative
power management components for the Computer, Consumer, Industrial,
Automotive and Communications markets. Products include LED General
Lighting, Backlighting, Battery Management and Power
Management.
O2Micro International maintains an extensive portfolio of
intellectual property with 32,638 patent claims granted, and over
35,000 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.
Statements made in this release that are not historical,
including statements regarding O2Micro or its 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 and other Federal
Securities Laws. Such statements involve risks, speculation and
uncertainties that may cause actual results to differ materially
from those set forth in these statements or from management's
current views and expectations. Risks and uncertainties in this
release may include, without limitation, any one or combination of
the following: the effect of competitive and economic factors; real
property value fluctuations and market demand; legal changes in any
relevant rules and regulations pertaining to O2Micro's business;
changes in technology and industry standards, and O2Micro's
reaction to those factors; consumer and business buying decisions
with respect to our customers' products incorporating O2Micro's
products; continued competitive pressures in the marketplace; the
ability of O2Micro to deliver to the marketplace, and stimulate
customer demand therein, for new products and technological
innovations on a timely basis; the effect that product
introductions and transitions, changes in product pricing or mix,
and/or increases in component costs could have on O2Micro's gross
margins; the inventory risk associated with O2Micro's need to
order, or commit to order, product components and product capacity
in advance of forecast customer orders; the continued availability
of acceptable terms of certain components and services essential to
O2Micro's business which are currently obtained by the company from
sole or limited sources; the effect that O2Micro's dependency on
manufacturing and logistics services provided by third parties may
have on the quality, quantity, availability or cost of products
manufactured or services rendered; risks associated with O2Micro's
international operations; the potential impact of a finding that
O2Micro has infringed on the intellectual property rights of
others, or that any third party may have infringed on O2Micro's
intellectual property that may negatively affect O2Micro's
business; O2Micro's legal classifications with governmental and
regulatory agencies; O2Micro's dependency on the performance of
distributors, carriers, independent sales representatives, and
other resellers of O2Micro's products; the effect that product and
service quality problems could have on O2Micro's sales ability and
operating profits; the ability of O2Micro to deliver its products
in a timely fashion to its customers, and the possible negative
ramifications if such is not possible; the continued service and
availability of key executives and employees; war, terrorism,
public health issues, natural disasters, and other circumstances
that could disrupt supply, delivery, or demand of products; and
unfavorable results of other legal proceedings.
Actual results may differ materially due to numerous risk
factors. Such risk factors are more fully enumerated in O2Micro's
20-F Annual Filings, Annual Report(s), 6-K's, the Form F-1 filed in
connection with the company's initial public offering in August
2000, information posted on our website at www.o2micro.com, and
other documents filed with the SEC, NASDAQ or any other public
agency from time to time. The statements herein are based on dated
information on the dates mentioned herein, which is subject to
change. O2Micro assumes no obligation to update or revise the
information provided on today, or any other forward-looking
information, whether as a result of new information, future events
or any other information that may arise. This information only
speaks to the respective dates mentioned in said information.
|
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 |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
NET SALES |
$13,671 |
$15,384 |
$ 41,462 |
$ 49,261 |
|
|
|
|
|
COST OF SALES |
6,556 |
7,408 |
20,509 |
23,828 |
|
|
|
|
|
GROSS PROFIT |
7,115 |
7,976 |
20,953 |
25,433 |
|
|
|
|
|
Research and development (1) |
4,709 |
5,499 |
13,006 |
16,329 |
Selling, general and administrative
(1) |
5,827 |
6,018 |
17,818 |
18,876 |
Total Operating Expenses |
10,536 |
11,517 |
30,824 |
35,205 |
|
|
|
|
|
LOSS FROM OPERATIONS |
(3,421) |
(3,541) |
(9,871) |
(9,772) |
|
|
|
|
|
NON-OPERATING INCOME |
|
|
|
|
Interest income |
139 |
255 |
575 |
791 |
Foreign exchange gain – net |
834 |
201 |
691 |
174 |
Gain on sale of real estate |
268 |
-- |
767 |
-- |
Other – net |
105 |
394 |
355 |
493 |
Total Non-operating Income |
1,346 |
850 |
2,388 |
1,458 |
|
|
|
|
|
LOSS BEFORE INCOME TAX |
(2,075) |
(2,691) |
(7,483) |
(8,314) |
|
|
|
|
|
INCOME TAX EXPENSE |
287 |
250 |
815 |
734 |
|
|
|
|
|
NET LOSS |
(2,362) |
(2,941) |
(8,298) |
(9,048) |
|
|
|
|
|
OTHER COMPREHENSIVE INCOME |
|
|
|
|
Foreign currency translation
adjustments |
(2,180) |
(487) |
(1,753) |
(720) |
Unrealized loss on available-for-sale
securities |
-- |
(255) |
-- |
(232) |
Unrealized pension gain |
2 |
2 |
5 |
5 |
Total Other Comprehensive Loss |
(2,178) |
(740) |
(1,748) |
(947) |
|
|
|
|
|
COMPREHENSIVE LOSS |
$ (4,540) |
$ (3,681) |
$ (10,046) |
$ (9,995) |
|
|
|
|
|
BASIC AND DILUTED LOSS PER ADS |
$ (0.09) |
$ (0.11) |
$ (0.32) |
$ (0.33) |
|
|
|
|
|
ADS UNITS USED IN LOSS PER ADS
CALCULATION: |
|
|
|
|
Basic (in thousands) |
25,896 |
27,174 |
26,163 |
27,436 |
Diluted (in thousands) |
25,896 |
27,174 |
26,163 |
27,436 |
|
|
|
|
|
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE
AS FOLLOWS: |
|
|
|
|
Research and development |
$ 76 |
$ 131 |
$ 246 |
$ 390 |
Selling, general and administrative |
$ 374 |
$ 417 |
$ 1,202 |
$ 1,232 |
|
O2MICRO INTERNATIONAL
LIMITED AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEET |
(In Thousand U.S.
Dollars, Except Share Amounts) |
|
|
|
|
September 30, |
December 31, |
|
2015 |
2014 |
ASSETS |
(Unaudited) |
(Audited) |
|
|
|
CURRENT ASSETS |
|
|
Cash and cash equivalents |
$ 43,261 |
$ 41,069 |
Restricted cash |
30 |
164 |
Short-term investments |
11,721 |
21,481 |
Accounts receivable – net |
6,980 |
6,789 |
Inventories |
9,214 |
8,642 |
Prepaid expenses and other current
assets |
1,218 |
1,308 |
Total Current Assets |
72,424 |
79,453 |
|
|
|
LONG-TERM INVESTMENTS |
14,257 |
14,754 |
|
|
|
PROPERTY AND EQUIPMENT – NET |
15,683 |
19,363 |
|
|
|
OTHER ASSETS |
2,692 |
3,168 |
|
|
|
TOTAL ASSETS |
$ 105,056 |
$ 116,738 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
Notes and accounts payable |
$ 3,539 |
$ 2,131 |
Income tax payable |
749 |
650 |
Accrued expenses and other current
liabilities |
4,188 |
6,049 |
Total Current Liabilities |
8,476 |
8,830 |
|
|
|
OTHER LONG-TERM LIABILITIES |
|
|
Accrued pension liabilities |
270 |
293 |
Other liabilities |
184 |
349 |
Total Other Long-Term Liabilities |
454 |
642 |
|
|
|
Total Liabilities |
8,930 |
9,472 |
|
|
|
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 shares |
|
|
Outstanding –1,291,845,550 and
1,327,260,450 shares as of September 30, 2015 and December 31,
2014, respectively |
33 |
33 |
Additional paid-in capital |
141,470 |
141,229 |
Accumulated deficits |
(25,589) |
(17,291) |
Accumulated other comprehensive
income |
5,020 |
6,768 |
Treasury stock – 368,941,050 and 333,526,150
shares as of September 30, 2015 and December 31, 2014,
respectively |
(24,808) |
(23,473) |
Total Shareholders' Equity |
96,126 |
107,266 |
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 105,056 |
$ 116,738 |
CONTACT: Scott L. Anderson
Director of Investor Relations, O2Micro
Phone: 408.987.5920, x8888
Email: scott.anderson@o2micro.com
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