Operational and Strategic Highlights:
- Q2 2019 sequential quarterly revenue was up 11.8% exceeding
guidance provided on March 29, 2019
- GAAP net loss per fully diluted ADS in the second quarter of
2019 was 11 cents, with non-GAAP net loss of 8 cents per fully
diluted ADS.
- Revenue growth in the second quarter of 2019 is expected to
range between 5% and 11% compared to Q2 2019.
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 ending June 30, 2019.
Financial Highlights for the Second
Quarter ending June 30, 2019: O2Micro
International Limited (the “Company”) reported Q2 2019 revenue of
$14.3 million. Revenue was up 11.8% sequentially, and down 6.1%
from the same quarter in the previous year. The gross margin in the
second quarter of 2019 was 50.1%, which is down from 50.5% in the
prior quarter, and down from 52.1% in the second quarter of 2018.
The gross margin remains in our target range and varies primarily
with the quarterly revenue and product mix. During the second
quarter of 2019, the Company recorded total GAAP operating expenses
of $9.7 million, compared to $10.1 million in the first quarter of
2019, and $9.7 million in the year-ago Q2 period. The GAAP
operating margins for the second quarter of 2019, the first quarter
of 2019, and second quarter of 2018 were (18.1%), (28.4%), and
(11.9%), respectively.
GAAP net loss was $2.8 million in Q2 2019. This compares to a
GAAP net loss of $3.8 million in the first quarter of 2019 and a
GAAP net income of $1.4 million in Q2 2018. GAAP net loss per fully
diluted ADS was $0.11 in Q2 2019. This compares to a GAAP net loss
per fully diluted ADS of $0.15 in Q1 2019 and a GAAP net income per
fully diluted ADS of $0.6 in Q2 2018.
Supplementary Data: The Company ended the
second quarter of 2019 with $34.9 million in cash and short-term
investments or $1.32 per outstanding ADS. The accounts receivable
balance was $11.1 million and represented 62 days sales outstanding
at the end of Q2 2019. Inventory was $9.9 million or 130 days and
turned over 2.8 times during Q2 2019. As of June 30, 2019, the
Company had $49.7 million in working capital and the book value was
$72.7 million, or $2.76 per outstanding ADS. As of June 30th, 2019,
O2Micro International Limited had a total of 387 employees
worldwide, including 246 engineers.
Management Commentary: “We forecast the second
half of 2019 will show strength in our growth drivers. Our TV
products have been adopted globally by many first-tier customers
along with increased design wins, while our monitor business grow
strong for industrial application. We expand the product line of
battery products are showing expanded adoption in the automotive,
power tools, uninterrupted power supplies, and household appliance
markets. Growth of our smartphone products are also showing more
opportunity in the upcoming quarters with new efficient and
adaptable products, although still a new market for us.", said
Sterling Du, O2Micro’s Chairman and CEO. “We believe our
solutions and design wins for these product segments will provide
for ongoing growth in a dynamic consumer market and lead O2Micro
back to long term profitability.”
Conference Call: O2Micro will hold its first
quarter conference call today, August 2, 2019, at 6:00AM. Pacific,
9:00AM Eastern. You may participate using the following dial-in
information.
Conference Code: 6588373Participants, Int'l Toll: +1
334-777-6978Participants, US/CAN: 800-367-2403
The Call-in Audio Replay will be available from Aug 2, 2019
12:00 Eastern Time (US & Canada) (UTC-05:00) through Aug 8,
2019 12:00 Eastern Time (US & Canada) (UTC
5:00)https://event.mymeetingroom.com/Public/WebRegistration/ZW5jPXNhQWNoekF6VkljMGw4UmZlZ2psSCt5YmxkeVFnQ0NNNFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlRLNlJqR3VDQ09WRWNYYlZBbDc5ZlVRPT0=
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. 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
SUBSIDIARIESCONSOLIDATED 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, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET SALES |
$ |
14,271 |
|
|
$ |
15,205 |
|
|
$ |
27,034 |
|
|
$ |
29,313 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COST OF SALES |
|
7,125 |
|
|
|
7,290 |
|
|
|
13,441 |
|
|
|
14,176 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GROSS PROFIT |
|
7,146 |
|
|
|
7,915 |
|
|
|
13,593 |
|
|
|
15,137 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development (1) |
|
4,846 |
|
|
|
4,695 |
|
|
|
9,956 |
|
|
|
9,501 |
|
|
Selling, general and administrative (1) |
|
4,879 |
|
|
|
5,035 |
|
|
|
9,835 |
|
|
|
9,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
9,725 |
|
|
|
9,730 |
|
|
|
19,791 |
|
|
|
19,500 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOSS FROM OPERATIONS |
|
(2,579 |
) |
|
|
(1,815 |
) |
|
|
(6,198 |
) |
|
|
(4,363 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NON-OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
107 |
|
|
|
114 |
|
|
|
164 |
|
|
|
211 |
|
|
Net (loss) gain recognized on long-term investments |
|
(187 |
) |
|
|
3,118 |
|
|
|
(172 |
) |
|
|
12,974 |
|
|
Foreign exchange gain (loss) – net |
|
57 |
|
|
|
186 |
|
|
|
(84 |
) |
|
|
29 |
|
|
Other – net |
|
112 |
|
|
|
123 |
|
|
|
253 |
|
|
|
308 |
|
|
Total Non-operating Income |
|
89 |
|
|
|
3,541 |
|
|
|
161 |
|
|
|
13,522 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME (LOSS) BEFORE INCOME
TAX |
|
(2,490 |
) |
|
|
1,726 |
|
|
|
(6,037 |
) |
|
|
9,159 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME TAX EXPENSE |
|
290 |
|
|
|
265 |
|
|
|
589 |
|
|
|
530 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME (LOSS) |
|
(2,780 |
) |
|
|
1,461 |
|
|
|
(6,626 |
) |
|
|
8,629 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OTHER COMPREHENSIVE
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
(302 |
) |
|
|
(968 |
) |
|
|
(133 |
) |
|
|
(293 |
) |
|
Unrealized pension gain |
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
4 |
|
|
Total Other Comprehensive Income |
|
(300 |
) |
|
|
(966 |
) |
|
|
(130 |
) |
|
|
(289 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| COMPREHENSIVE INCOME
(LOSS) |
$ |
(3,080 |
) |
|
$ |
495 |
|
|
$ |
(6,756 |
) |
|
$ |
8,340 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EARNINGS (LOSS) PER ADS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.11 |
) |
|
$ |
0.06 |
|
|
$ |
(0.25 |
) |
|
$ |
0.33 |
|
|
Diluted |
$ |
(0.11 |
) |
|
$ |
0.06 |
|
|
$ |
(0.25 |
) |
|
$ |
0.33 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ADS UNITS USED IN EARNINGS
(LOSS) PER ADS CALCULATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (in thousands) |
|
26,356 |
|
|
|
26,029 |
|
|
|
26,325 |
|
|
|
26,003 |
|
|
Diluted (in thousands) |
|
26,356 |
|
|
|
26,462 |
|
|
|
26,325 |
|
|
|
26,436 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) INCLUDES STOCK-BASED
COMPENSATION CHARGE AS FOLLOWS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
$ |
73 |
|
|
$ |
60 |
|
|
$ |
136 |
|
|
$ |
122 |
|
|
Selling, general and administrative |
$ |
313 |
|
|
$ |
294 |
|
|
$ |
575 |
|
|
$ |
596 |
|
| |
|
|
|
O2MICRO INTERNATIONAL LIMITED AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In Thousand U.S. Dollars, Except Share
Amounts) |
|
|
|
|
|
|
|
|
|
| |
June 30, |
|
December 31, |
| |
2019 |
|
2018 |
| ASSETS |
(Unaudited) |
|
(Audited) |
| |
|
|
|
|
|
|
|
| CURRENT ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
12,955 |
|
|
$ |
32,414 |
|
|
Restricted cash |
|
34 |
|
|
|
34 |
|
|
Short-term investments |
|
21,950 |
|
|
|
6,172 |
|
|
Accounts receivable – net |
|
11,143 |
|
|
|
11,388 |
|
|
Inventories |
|
9,910 |
|
|
|
10,288 |
|
|
Prepaid expenses and other current assets |
|
2,360 |
|
|
|
2,276 |
|
|
Total Current Assets |
|
58,352 |
|
|
|
62,572 |
|
| |
|
|
| LONG-TERM INVESTMENTS |
|
6,463 |
|
|
|
10,445 |
|
| |
|
|
| PROPERTY AND EQUIPMENT – NET
(2) |
|
17,365 |
|
|
|
13,714 |
|
| |
|
|
| OTHER ASSETS |
|
2,321 |
|
|
|
2,578 |
|
| |
|
|
|
|
|
|
|
| TOTAL ASSETS |
$ |
84,501 |
|
|
$ |
89,309 |
|
| |
|
|
|
|
|
|
|
| LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
| |
|
|
| CURRENT LIABILITIES |
|
|
|
Notes and accounts payable |
$ |
2,839 |
|
|
$ |
4,582 |
|
|
Income tax payable |
|
384 |
|
|
|
413 |
|
|
Lease liabilities |
|
975 |
|
|
|
- |
|
|
Accrued expenses and other current liabilities |
|
4,420 |
|
|
|
4,181 |
|
|
Total Current Liabilities |
|
8,618 |
|
|
|
9,176 |
|
| |
|
|
| OTHER LONG-TERM
LIABILITIES |
|
|
|
Accrued pension liabilities |
|
295 |
|
|
|
321 |
|
|
Deferred income tax liabilities |
|
673 |
|
|
|
681 |
|
|
Lease liabilities |
|
2,124 |
|
|
|
- |
|
|
Other liabilities |
|
86 |
|
|
|
85 |
|
|
Total Other Long-Term Liabilities |
|
3,178 |
|
|
|
1,087 |
|
| |
|
|
| Total Liabilities |
|
11,796 |
|
|
|
10,263 |
|
| |
|
|
|
|
|
|
|
| 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 – 1,669,036,600 shares as of June 30, 2019 and December 31,
2018 Outstanding –1,317,526,300 and 1,298,808,750 shares as of June
30, 2019 and December 31, 2018, respectively |
|
33 |
|
|
|
33 |
|
|
Additional paid-in capital |
|
142,775 |
|
|
|
143,115 |
|
|
Accumulated deficits |
|
(53,282 |
) |
|
|
(45,912 |
) |
|
Accumulated other comprehensive income |
|
4,544 |
|
|
|
4,674 |
|
|
Treasury stock – 351,510,300 and 370,227,850 shares as of June 30,
2019 and December 31, 2018, respectively |
|
(21,365 |
) |
|
|
(22,864 |
) |
|
Total Shareholders’ Equity |
|
72,705 |
|
|
|
79,046 |
|
| |
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
84,501 |
|
|
$ |
89,309 |
|
(2) Property and equipment- net includes right-of-used assets
under operating lease of $3,086 as of June 30, 2019
O2Micro
Daniel Meyberg
Investor Relations
ir@o2micro.com
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