O2Micro Reports Record Third Quarter 2020 Financial Results

Friday, 30. October 2020 12:00

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 30th, 2020.

Financial Highlights for the Third Quarter ending September 30th, 2020:
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 follows 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 30th 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.

 

O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED)
(In Thousand U.S. Dollars, Except Per Share Amounts)

 Three Months EndedNine Months Ended
 September 30, September 30,
  2020   2019   2020    2019 
                
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 
                

 

O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousand U.S. Dollars, Except Share Amounts)

 September 30, December 31,
  2020   2019  
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.

 

O2Micro
Daniel Meyberg
Investor Relations
ir@o2micro.com

Gregory Communications FCA
Joe Hassett
joeh@gregoryfca.com

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