O2Micro Reports Fourth Quarter 2020 Financial Results

Rhea-AI Summary

O2Micro reported Q4 2020 revenue of $23.2 million, a 30% increase year-over-year, aligning with previous guidance. The company achieved a GAAP net income of $4.4 million or $0.14 per ADS, up from $1.8 million in Q4 2019. Gross margin decreased to 51.3% from 56.7%, while operating expenses fell to $8.3 million. For Q1 2021, O2Micro expects revenue between $22.3 million and $24.6 million, reflecting a 43% to 58% increase compared to Q1 2020. The company ended Q4 with $47.8 million in cash and investments.

Positive

• 30% revenue growth compared to Q4 2019.
• Increased GAAP net income to $4.4 million from $1.8 million year-over-year.
• Operating margins improved to 15.7% from 5.2% in Q4 2019.
• Strong demand in backlighting and battery products, indicating robust market acceptance.

Negative

• Gross margin declined to 51.3% from 56.7% in Q4 2019.

GEORGE TOWN, Grand Cayman, Feb. 05, 2021 (GLOBE NEWSWIRE) --

Operational Highlights:

• 2020 Q4 revenue was $23.2 million, and within the guidance provided on October 30^th, 2020.
  
  
• Revenue increased 30% compared to the same quarter in 2019.
  
  
• GAAP net income was $0.14 per fully diluted ADS, up from $0.07 per ADS, for the same quarter a year ago.
  
  
• O2Micro expects first quarter 2021 revenue to be in the range of $22.3 million to $24.6 million. This is an increase of 43% to 58% when compared to the first quarter of 2020.
  

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 Fourth Quarter ending December 31^st, 2020.

Financial Highlights for the Fourth Quarter ending December 31st, 2020:
O2Micro reported fourth quarter 2020 revenue of $23.2 million. Revenue was up 30% from the same quarter in the previous year. The gross margin in the fourth quarter of 2020 was 51.3%, which was down from 56.7% in the same quarter of 2019. During the fourth quarter of 2020, the company recorded total GAAP operating expenses of $8.3 million and was down from $9.2 million in the fourth quarter of 2019. The GAAP operating margins for the fourth quarter of 2020 was 15.7 % compared to 5.2% in the fourth quarter of 2019. The Company reported 2020 Q4 GAAP net income of $4.4 million, or $0.14 per fully diluted ADS, compared to a GAAP net income of $1.8 million, or $0.07 per ADS in the comparable quarter of 2019.

Supplementary Data:
The Company ended the fourth quarter of 2020 with $47.8 million in unrestricted cash and short-term investments or $1.76 per outstanding ADS, along with 303 employees worldwide of which 171 are engineers.

Management Commentary:
"O2Micro continued our growth momentum into Q4 with a 30% revenue increase over the same quarter in 2019, a net income of $4.4 million and an 18.8% profit margin (GAAP), compared to net income of $1.8 million and 10% profit margin in the fourth quarter of 2019. Strong rising demand for backlighting products for monitors, televisions, notebooks, and tablets continued their upward trend through Q4, while revenue from our battery products also grew strongly across all sectors as our proprietary mixed signal designs enriched cordless appliances, UPS, energy storage, transportation, and power tools. Strong overall market acceptance has resulted in additional Top Tier and OEM manufacturers choosing O2Micro Integrated circuits.” said Sterling Du, O2Micro’s Chairman and CEO. “These factors, along with continued management of operational costs, shows confidence 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 February 5^th, 2021, at 6:00AM. Pacific, 9:00AM Eastern. You may participate using the following dial-in information.

Conference Code: 5315627
Participants, Int'l Toll: +1 323-289-6576
Participants, US/CAN: 800-437-2398

The Call-in Audio Replay will be available following the call from February 5^th, 2021, 12:00PM Eastern Time (US & Canada) through February 19^th, 2021, 12:00PM Eastern Time (US & Canada)
https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6Vklla3JjZi9iQ2dWSzBBRG14aDdzUk81NFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlR5Q1VVNG9sVE9GOHVxRHl2eVFIMmlnPT0=
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 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
(In Thousand U.S. Dollars, Except Per Share Amounts)

	Three Months Ended								Year Ended
	December 31,								December 31,
		2020				2019				2020				2019
	(Unaudited)								(Unaudited)				(Audited)
OPERATING REVENUES	$	23,235			$	17,861			$	78,335			$	60,928
COST OF REVENUES		11,317				7,727				37,951				28,960
GROSS PROFIT		11,918				10,134				40,384				31,968
OPERATING EXPENSES
Research and development (1)		3,881				4,382				17,119				19,065
Selling, general and administrative (1)		4,385				4,828				17,742				19,286
Total Operating Expenses		8,266				9,210				34,861				38,351
INCOME (LOSS) FROM OPERATIONS		3,652				924				5,523				(6,383	)
NON-OPERATING INCOME
Interest income		70				216				506				543
Net gain (loss) recognized on long-term investments		133				245				(79	)			788
Foreign exchange loss - net		(54	)			(79	)			(238	)			(162	)
Gain on sale of real estate		-				500				-				500
Government grants		666				129				817				204
Other - net		105				102				535				642
Total Non-operating Income		920				1,113				1,541				2,515
INCOME (LOSS) BEFORE INCOME TAX		4,572				2,037				7,064				(3,868	)
INCOME TAX EXPENSE		215				250				937				1,171
NET INCOME (LOSS)		4,357				1,787				6,127				(5,039	)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments		588				356				1,082				(85	)
Unrealized pension gain		3				61				4				65
Total Other Comprehensive Income (Loss)		591				417				1,086				(20	)
COMPREHENSIVE INCOME (LOSS)	$	4,948			$	2,204			$	7,213			$	(5,059	)
EARNINGS (LOSS) PER ADS
Basic	$	0.16			$	0.07			$	0.23			$	(0.19	)
Diluted	$	0.14			$	0.07			$	0.21			$	(0.19	)
ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION:
Basic (in thousands)		27,161				26,347				26,978				26,321
Diluted (in thousands)		30,664				27,095				28,724				26,321
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:
Research and development	$	80			$	68			$	293			$	272
Selling, general and administrative	$	284			$	310			$	1,121			$	1,190

O₂MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousand U.S. Dollars, Except Share Amounts)

	December 31,				December 31,
		2020				2019
ASSETS	(Unaudited)				(Audited)
CURRENT ASSETS
Cash and cash equivalents	$	18,752			$	10,696
Restricted cash		37				35
Short-term investments		29,054				35,693
Accounts receivable - net		16,430				10,335
Inventories		12,588				8,796
Prepaid expenses and other current assets		2,548				1,295
Total Current Assets		79,409				66,850
LONG-TERM INVESTMENTS		992				4,172
PROPERTY AND EQUIPMENT - NET		17,266				15,551
OTHER ASSETS		4,369				2,426
TOTAL ASSETS	$	102,036			$	88,999
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Notes and accounts payable	$	7,995			$	4,867
Income tax payable		272				611
Lease liabilities		865				827
Accrued expenses and other current liabilities		5,934				4,839
Total Current Liabilities		15,066				11,144
OTHER LONG-TERM LIABILITIES
Accrued pension liabilities		177				214
Deferred income tax liabilities		545				589
Lease liabilities		2,091				1,932
Other liabilities		68				65
Total Other Long-Term Liabilities		2,881				2,800
Total Liabilities		17,947				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 December 31, 2020 and December 31, 2019
Outstanding - 1,361,886,000 and 1,314,798,600 shares as of December 31, 2020 and
December 31, 2019, respectively		33				33
Additional paid-in capital		143,422				143,484
Accumulated deficits		(46,744	)			(51,773	)
Accumulated other comprehensive income		5,740				4,654
Treasury stock - 307,150,600 and 354,238,000 shares as of December 31, 2020 and
December 31, 2019, respectively		(18,362	)			(21,343	)
Total Shareholders’ Equity		84,089				75,055
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	102,036			$	88,999

  

FAQ

What were O2Micro's Q4 2020 earnings?

O2Micro reported Q4 2020 earnings of $23.2 million, a 30% increase compared to the same quarter in 2019.

What is O2Micro's expected revenue for Q1 2021?

For Q1 2021, O2Micro expects revenue between $22.3 million and $24.6 million, representing a 43% to 58% increase compared to Q1 2020.

How did O2Micro's GAAP net income change in Q4 2020?

O2Micro's GAAP net income rose to $4.4 million, or $0.14 per ADS, up from $1.8 million in Q4 2019.

What is the current cash position of O2Micro?

O2Micro ended Q4 2020 with $47.8 million in unrestricted cash and short-term investments.