O2Micro Reports Record Third Quarter 2020 Financial Results
GEORGE TOWN, Grand Cayman, Oct. 30, 2020 (GLOBE NEWSWIRE) --
*Operational Highlights**:*
· 2020 Q3 revenue was $22.2 million and within the range of updated guidance provided on October 5, 2020.· Revenue increased 39% from the same quarter in 2019.· GAAP earnings were $0.10 per fully diluted ADS, up from $(0.01) per ADS, for the same quarter a year ago.· O2Micro expects fourth quarter 2020 revenue to be in the range of $22.7 million to $24.0 million. This is an increase of 27% to 34% when compared to the fourth quarter of 2019.
O2Micro^® International Limited (NASDAQ: OIIM)(“O2Micro”), 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 ending September 30^th, 2020.
*Financial Highlights for the **Third* *Quarter ending* *Sept**ember** 30*^*th**, **20**20**: *
O2Micro reported third quarter 2020 revenue of $22.2 million. Revenue was up 39% from the same quarter in the previous year. The gross margin in the third quarter of 2020 was 51.8%, which was up from 51.4% in the same quarter of 2019. During the third quarter of 2020, the company recorded total GAAP operating expenses of $8.4 million and was down from $9.4 million in the third quarter of 2019. The GAAP operating margins for the third quarter of 2020 was 14% showing significant improvement compared to (6.9%) in the third quarter of 2019. The Company reported 2020 Q3 GAAP net income of $2.9 million, or $0.10 per fully diluted ADS, compared to a GAAP net loss of $200,000, or $(0.01) per ADS in the comparable quarter of 2019.
*Supplementary Data: *
The Company ended the third quarter of 2020 with $40.8 million in unrestricted cash and short-term investments or $1.51 per outstanding ADS, along with 298 employees worldwide of which 166 are engineers.
*Management Commentary: *
"O2Micro turned profitable in Q3 with a healthy 15% net profit margin (non-GAAP) compared to -3.4% net profit margin (non-GAAP) in the same quarter last year as we continued to benefit from the market growth of our next generation Battery Management and Intelligent Lighting products. We have seen strong demand from more Top Tier and OEM manufacturers choosing O2Micro Integrated circuits inside their products ranging from TV's and Monitors, cordless tools and appliances, to solutions for personal transportation such as e-bikes and scooters, while at the same time we continue to manage operational costs,” said Sterling Du, O2Micro’s Chairman and CEO. “We are optimistic that our business fundamentals are leading O2Micro into sustainable long-term profitability.”
*CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME follow**s** conference call information below*
*Conference Call:*
O2Micro will hold its third quarter conference call on Friday October 30th, 2020, at 6:00AM Pacific, 9:00AM Eastern. You may participate using the following dial-in information.
Conference Code: 5174504
Participants, Int'l Toll: +1 334-777-6978
Participants, US/CAN: 800-367-2403
The Call-in Audio Replay will be available following the call from Oct 30^th 12:00PM Eastern Time (US & Canada) through November 12th 12:00PM Eastern Time (US & Canada)
https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6VkljNTNGRllxYjNYZzdMcGZtczE5Zy9XNFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlQ4TjNLZjdvUUtpOG9iMGJrNDF0enVnPT0=
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 components for the Consumer, Industrial and Automotive markets. Products include 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.
*O*[*2*]*MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES*
*CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME **(U**NAUDITED)*
* (In Thousand U.S. Dollars, Except Per Share Amounts)*
*Three Months Ended* *Nine** Months Ended* *S**eptember** 30,* **September** 30,***
* *20**20* *2019* *20**20* * 201**9*
OPERATING REVENUES $ 22,235 $ 16,033 $ 55,100 $ 43,067
COST OF REVENUES 10,713 7,792 26,634 21,233
GROSS PROFIT 11,522 8,241 28,466 21,834
OPERATING EXPENSES
Research and development (1) 4,072 4,727 13,238 14,683
Selling, general and administrative (1) 4,333 4,623 13,357 14,458
Total Operating Expenses 8,405 9,350 26,595 29,141
INCOME (LOSS) FROM OPERATIONS 3,117 (1,109 ) 1,871 (7,307 )
NON-OPERATING INCOME
Interest income 92 163 436 327
Net (loss) gain recognized on long-term investments (171 ) 715 (212 ) 543
Foreign exchange (loss) gain – net (124 ) 1 (184 ) (83 )
Other – net 271 362 581 615
Total Non-operating Income 68 1,241 621 1,402
INCOME (LOSS) BEFORE INCOME TAX 3,185 132 2,492 (5,905 )
INCOME TAX EXPENSE 255 332 722 921
NET INCOME (LOSS) 2,930 (200 ) 1,770 (6,826 )
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments 576 (308 ) 494 (441 )
Unrealized pension gain - 1 1 4
Total Other Comprehensive Income (Loss) 576 (307 ) 495 (437 )
COMPREHENSIVE INCOME (LOSS) $ 3,506 $ (507 ) $ 2,265 $ (7,263 )
EARNINGS (LOSS) PER ADS
Basic $ 0.11 $ (0.01 ) $ 0.07 $ (0.26 )
Diluted $ 0.10 $ (0.01 ) $ 0.06 $ (0.26 )
ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION:
Basic (in thousands) 27,040 26,347 26,917 26,332
Diluted (in thousands) 28,896 26,347 28,078 26,332
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:
Research and development $ 66 $ 68 $ 213 $ 204
Selling, general and administrative $ 260 $ 305 $ 837 $ 880
*O*[*2*]*MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES*
*CONSOLIDATED BALANCE SHEETS*
*(In Thousand U.S. Dollars, Except Share Amounts)*
*September** 30,* **December** 31,***
* *20**20* *20**19 *
*ASSETS* *(Unaudited)**
* *(Audited)**
*
CURRENT ASSETS
Cash and cash equivalents $ 11,032 $ 10,696
Restricted cash 36 35
Short-term investments 29,732 35,693
Accounts receivable – net 16,797 10,335
Inventories 12,919 8,796
Prepaid expenses and other current assets 1,666 1,295
Total Current Assets 72,182 66,850
LONG-TERM INVESTMENTS 2,507 4,172
PROPERTY AND EQUIPMENT – NET (1) 15,888 15,551
OTHER ASSETS 4,975 2,426
TOTAL ASSETS $ 95,552 $ 88,999
*LIABILITIES AND SHAREHOLDERS’ EQUITY*
CURRENT LIABILITIES
Notes and accounts payable $ 7,935 $ 4,867
Income tax payable 421 611
Lease liabilities 692 827
Accrued expenses and other current liabilities 5,414 4,839
Total Current Liabilities 14,462 11,144
OTHER LONG-TERM LIABILITIES
Accrued pension liabilities 191 214
Deferred income tax liabilities 689 589
Lease liabilities 1,772 1,932
Other liabilities 67 65
Total Other Long-Term Liabilities 2,719 2,800
Total Liabilities 17,181 13,944
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 September 30, 2020 and December 31, 2019
Outstanding – 1,352,508,950 and 1,314,798,600 shares as of September 30, 2020 and
December 31, 2019, respectively 33 33
Additional paid-in capital 143,213 143,484
Accumulated deficits (51,101 ) (51,773 )
Accumulated other comprehensive income 5,149 4,654
Treasury stock – 316,527,650 and 354,238,000 shares as of September 30, 2020 and
December 31, 2019, respectively (18,923 ) (21,343 )
Total Shareholders’ Equity 78,371 75,055
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 95,552 $ 88,999
(1) Property and equipment- net includes right-of-used assets under operating lease of $2,419 as of September 30, 2020.
CONTACT: O2Micro
Daniel Meyberg
Investor Relations
ir@o2micro.com
Gregory Communications FCA
Joe Hassett
joeh@gregoryfca.com