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O2Micro Reports First Quarter 2022 Financial Results

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O2Micro reported Q1 2022 revenue of $21.6 million, a 6.9% decline year-over-year. The GAAP net income for the quarter was $915,000, or $0.03 per fully diluted ADS, down from $2.5 million or $0.08 in Q1 2021. The company anticipates Q2 2022 revenue between $20.5 million and $22.7 million. Gross margin improved to 52.6% compared to 51.6% a year prior. However, operating expenses rose to $10.5 million, increasing the operating margin to 3.9% from 10.2% in the previous year.

Positive
  • Improved gross margin at 52.6%, up from 51.6% year-over-year.
  • Cash and short-term investments at $48.2 million, or $1.65 per ADS.
Negative
  • Revenue decreased by 6.9% compared to Q1 2021.
  • Net income fell to $915,000 from $2.5 million year-over-year.
  • Operating expenses increased to $10.5 million from $9.6 million, impacting operating margin.

GEORGE TOWN, Grand Cayman, May 06, 2022 (GLOBE NEWSWIRE) --

Operational Highlights:

  • 2022 Q1 revenue was $21.6 million.

  • GAAP net income was $0.03 per fully diluted ADS

  • O2Micro expects the second quarter 2022 revenue to be in the range of $20.5 million to $22.7 million.

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 first quarter ending March 31, 2022.

Financial Highlights for the First Quarter ending March 31, 2022:
O2Micro reported the first quarter 2022 revenue of $21.6 million within the guidance announced on January 26, 2022. Revenue was down 6.9% from the same quarter in the previous year. The gross margin in the first quarter of 2022 was 52.6%, which was up from 51.6% in the same quarter of 2021. For the first quarter of 2022, the Company recorded total GAAP operating expenses of $10.5 million, which was up from $9.6 million in the same quarter of 2021. The GAAP operating margin for the first quarter of 2022 was 3.9% compared to 10.2% in the same quarter of 2021. The Company reported 2022 Q1 GAAP net income of $915 thousand, or $0.03 per fully diluted ADS, compared to GAAP net income of $2.5 million, or $0.08 per fully diluted ADS, in the comparable quarter of 2021.

Supplementary Data:
The Company ended the first quarter of 2022 with $48.2 million in unrestricted cash and short-term investments or $1.65 per outstanding ADS, along with 319 employees worldwide of which 181 are engineers.

Management Commentary:
Sterling Du, O2Micro’s Chairman and CEO, commented on the quarter, “O2 Micro continues to target fast growing markets with products that capitalize on our unique technological advantage in complex industrial, consumer and automotive applications with the world’s leading manufacturers. Importantly, the trend to integrate MOSFET transistors into these products should lead to higher ASPs and larger die sizes, driving revenue growth not only in 2022, but over the long term as well. We continue to focus on building shareholder value by implementing our strategic plan, leading edge research and development, and through both further penetration of existing customer and the expansion into new customers.”

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME follows conference call information below

Conference Call:
O2Micro will hold its first quarter conference call on May 6th, 2022, at 6:00AM. Pacific, 9:00AM Eastern. You may participate using the following dial-in information.

Conference Code: 4208398
Participants, Int'l Toll: +1 323-701-0160
Participants, US/CAN: 800-289-0720

A live webcast will also be available on the Company's website at http://ir.o2micro.com, and an online replay will be available following the call from May 6, 2022, at 12:00PM Eastern Time (US & Canada) through May 20, at 12:00PM Eastern Time (US & Canada) https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6VkljMVhVSXQwS05QbXZ3T1hxajdJLzFKNFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlQrSDFMUWxHSm4yTk5jS0xXZGZzSFV3PT0=

About O2Micro:
Founded in April 1995, O2Micro develops and markets innovative power management components for the Computer, Consumer, Industrial, and Automotive markets. Products include Backlighting, and Battery 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 Ended
  March 31,
   2022 2021
OPERATING REVENUES  $21,625  $23,236 
     
COST OF REVENUES   10,257   11,246 
     
GROSS PROFIT   11,368   11,990 
     
OPERATING EXPENSES    
Research and development (1)   4,970   4,566 
Selling, general and administrative (1)   5,565   5,056 
     
Total Operating Expenses   10,535   9,622 
     
INCOME FROM OPERATIONS   833   2,368 
     
NON-OPERATING INCOME    
Interest income   60   76 
Foreign exchange gain – net   102   42 
Government grants   11   110 
Other – net   112   130 
Total Non-operating Income   285   358 
     
INCOME BEFORE INCOME TAX   1,118   2,726 
     
INCOME TAX EXPENSE   203   244 
     
NET INCOME   915   2,482 
     
OTHER COMPREHENSIVE LOSS    
Foreign currency translation adjustments   (213)  (200)
Unrealized pension gain   1   - 
Total Other Comprehensive Loss   (212)  (200)
     
COMPREHENSIVE INCOME  $703  $2,282 
     
EARNINGS PER ADS    
Basic  $0.03  $0.09 
Diluted  $0.03  $0.08 
     
ADS UNITS USED IN EARNINGS PER ADS CALCULATION:    
Basic (in thousands)   28,963   27,964 
Diluted (in thousands)   30,609   31,400 
     
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:    
Research and development  $207  $91 
Selling, general and administrative  $367  $314 



O
2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousand U.S. Dollars, Except Share Amounts)

 March 31,
 December 31,
 2022
 2021
ASSETS(Unaudited)
 (Audited)
      
CURRENT ASSETS     
Cash and cash equivalents$18,484  $20,780 
Restricted cash 38   39 
Short-term investments 29,693   29,186 
Accounts receivable – net 16,157   18,784 
Inventories 21,815   19,523 
Prepaid expenses and other current assets 2,509   2,087 
Total Current Assets 88,696   90,399 
   
LONG-TERM INVESTMENTS 992   992 
   
PROPERTY AND EQUIPMENT – NET 23,864   23,611 
   
OTHER ASSETS 4,747   3,340 
   
TOTAL ASSETS$118,299  $118,342 
   
LIABILITIES AND SHAREHOLDERS’ EQUITY  
   
CURRENT LIABILITIES  
Accounts payable$8,532  $9,175 
Income tax payable 380   307 
Lease liabilities 1,274   1,076 
Accrued expenses and other current liabilities 4,294   5,773 
Total Current Liabilities 14,480   16,331 
   
LONG-TERM LIABILITIES  
Accrued pension liabilities 135   147 
Deferred income tax liabilities 616   537 
Lease liabilities 1,952   1,775 
Other liabilities 67   68 
Total Long-Term Liabilities 2,770   2,527 
   
Total Liabilities 17,250   18,858 
   
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 March 31, 2022 and December 31, 2021
Outstanding – 1,456,844,550 and 1,424,760,750 shares as of March 31, 2022 and
December 31, 2021, respectively
 33   33 
Additional paid-in capital 142,803   143,540 
Accumulated deficits (34,479)  (35,158)
Accumulated other comprehensive income 5,661   5,873 
Treasury stock – 212,192,050 and 244,275,850 shares as of March 31, 2022 and
December 31, 2021, respectively
 (12,969)  (14,804)
Total Shareholders’ Equity 101,049   99,484 
   
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$118,299  $118,342 

FAQ

What were the Q1 2022 earnings results for O2Micro (OIIM)?

O2Micro reported Q1 2022 revenue of $21.6 million with a GAAP net income of $915,000, or $0.03 per fully diluted ADS.

What is the Q2 2022 revenue guidance for O2Micro (OIIM)?

O2Micro expects Q2 2022 revenue to be in the range of $20.5 million to $22.7 million.

How did O2Micro's Q1 2022 revenue compare to the previous year?

O2Micro's Q1 2022 revenue decreased by 6.9% compared to Q1 2021.

What was O2Micro's gross margin in Q1 2022?

The gross margin for O2Micro in Q1 2022 was 52.6%, an improvement from 51.6% in Q1 2021.

What were O2Micro's operating expenses in Q1 2022?

O2Micro's operating expenses in Q1 2022 were $10.5 million, up from $9.6 million in the same quarter of the previous year.

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