O2Micro Reports Second Quarter 2020 Financial Results
O2Micro International Limited (OIIM) reported Q2 2020 revenue of $17.3 million, a 21.1% increase year-over-year and 10.9% sequential growth, aligning with earlier guidance. GAAP net income reached $380,000 or $0.01 per fully diluted ADS. Gross margin was 51.2%, slightly down from the prior quarter. The company expects Q3 2020 revenue between $17.6 million and $19.0 million. The firm ended Q2 with $41.4 million in cash, and working capital of $53.2 million.
- Q2 2020 revenue up 21.1% year-over-year and 10.9% sequentially.
- GAAP net income of $380,000 compared to losses in prior quarters.
- Q3 2020 revenue guidance of $17.6 million to $19.0 million.
- Gross margin decreased from 51.9% to 51.2% quarter-over-quarter.
- GAAP operating expenses increased to $9.5 million from $8.7 million in Q1 2020.
GEORGE TOWN, Grand Cayman, July 31, 2020 (GLOBE NEWSWIRE) --
Operational and Strategic Highlights:
- Q2 2020 revenue was 17.3 Million, up
21.1% from the same quarter in the previous year and up10.9% sequentially and within the range of guidance provided on May 8th, 2020.
- GAAP net income per fully diluted ADS in the second quarter of 2020 was 1 cent, with non-GAAP net income of 3 cents per fully diluted ADS.
- O2Micro expects the Q3 2020 revenue to be
$17.6 million to$19.0 million compared to$16.0 million in the comparable quarter of the previous year.
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, 2020.
Financial Highlights for the Second Quarter ending June 30, 2020:
O2Micro International Limited (the “Company”) reported Q2 2020 revenue of
GAAP net income was
Supplementary Data:
The Company ended the second quarter of 2020 with
Management Commentary:
“Our growth in the first half of 2020 has benefited from successful development of next-Gen products for Top Tier and OEM customers and a market focus on technologies supporting mobile and remote workforces, extended learning and in-home entertainment. Stay at home policies helped drive sales of higher end TV, monitors, power tools and electric bikes,” said Sterling Du, O2Micro’s Chairman and CEO. “We are optimistic that our business fundamentals are leading O2Micro back to long term profitability.”
Conference Call:
O2Micro will hold its Second quarter conference call on Friday July 31st, 2020, at 6:00AM. Pacific, 9:00AM Eastern. You may participate using the following dial-in information.
Conference ID: 9715102
Participants, Int'l Toll: +1 334-777-6978
Participants, US/CAN Toll Free: 800-367-2403
Live Webcast: https://ir.o2micro.com/events-and-presentations
The Call-in Audio Replay will be available following the call from July 31st, 2020 12:00PM Eastern Time (US & Canada) through August 12th, 2020 12:00PM Eastern Time (US & Canada) https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6VkllUlY5eHpuVjRaVTR0KzYzNXJXVDRMNFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlRqTXFMbHkxb3A0T0Y5b3BFOWNIOFJnPT0=
A 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, 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 Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| OPERATING REVENUES | $ | 17,284 | $ | 14,271 | $ | 32,865 | $ | 27,034 | ||||
| COST OF REVENUES | 8,431 | 7,125 | 15,921 | 13,441 | ||||||||
| GROSS PROFIT | 8,853 | 7,146 | 16,944 | 13,593 | ||||||||
| OPERATING EXPENSES | ||||||||||||
| Research and development (1) | 5,025 | 4,846 | 9,166 | 9,956 | ||||||||
| Selling, general and administrative (1) | 4,503 | 4,879 | 9,024 | 9,835 | ||||||||
| Total Operating Expenses | 9,528 | 9,725 | 18,190 | 19,791 | ||||||||
| LOSS FROM OPERATIONS | (675 | ) | (2,579 | ) | (1,246 | ) | (6,198 | ) | ||||
| NON-OPERATING INCOME | ||||||||||||
| Interest income | 157 | 107 | 344 | 164 | ||||||||
| Net gain (loss) recognized on long-term investments | 1,059 | (187 | ) | (41 | ) | (172 | ) | |||||
| Foreign exchange (loss) gain – net | (92 | ) | 57 | (60 | ) | (84 | ) | |||||
| Other – net | 193 | 112 | 310 | 253 | ||||||||
| Total Non-operating Income | 1,317 | 89 | 553 | 161 | ||||||||
| INCOME (LOSS) BEFORE INCOME TAX | 642 | (2,490 | ) | (693 | ) | (6,037 | ) | |||||
| INCOME TAX EXPENSE | 262 | 290 | 467 | 589 | ||||||||
| NET INCOME (LOSS) | 380 | (2,780 | ) | (1,160 | ) | (6,626 | ) | |||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
| Foreign currency translation adjustments | 164 | (302 | ) | (82 | ) | (133 | ) | |||||
| Unrealized pension gain | 1 | 2 | 1 | 3 | ||||||||
| Total Other Comprehensive Income (Loss) | 545 | (300 | ) | (81 | ) | (130 | ) | |||||
| COMPREHENSIVE INCOME (LOSS) | $ | 545 | $ | (3,080 | ) | $ | (1,241 | ) | $ | (6,756 | ) | |
| EARNINGS (LOSS) PER ADS | ||||||||||||
| Basic | $ | 0.01 | $ | (0.11 | ) | $ | (0.04 | ) | $ | (0.25 | ) | |
| Diluted | $ | 0.01 | $ | (0.11 | ) | $ | (0.04 | ) | $ | (0.25 | ) | |
| ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION: | ||||||||||||
| Basic (in thousands) | 26,991 | 26,356 | 26,856 | 26,325 | ||||||||
| Diluted (in thousands) | 27,726 | 26,356 | 26,856 | 26,325 | ||||||||
| (1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS: | ||||||||||||
| Research and development | $ | 67 | $ | 73 | $ | 147 | $ | 136 | ||||
| Selling, general and administrative | $ | 260 | $ | 313 | $ | 577 | $ | 575 | ||||
O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousand U.S. Dollars, Except Share Amounts)
| June 30, | December 31, | |||||
| 2020 | 2019 | |||||
| ASSETS | (Unaudited) | (Audited) | ||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 12,676 | $ | 10,696 | ||
| Restricted cash | 36 | 35 | ||||
| Short-term investments | 28,684 | 35,693 | ||||
| Accounts receivable – net | 11,730 | 10,335 | ||||
| Inventories | 12,416 | 8,796 | ||||
| Prepaid expenses and other current assets | 1,505 | 1,295 | ||||
| Total Current Assets | 67,047 | 66,850 | ||||
| LONG-TERM INVESTMENTS | 3,327 | 4,172 | ||||
| PROPERTY AND EQUIPMENT – NET (1) | 15,150 | 15,551 | ||||
| OTHER ASSETS | 5,484 | 2,426 | ||||
| TOTAL ASSETS | $ | 91,008 | $ | 88,999 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Notes and accounts payable | $ | 7,834 | $ | 4,867 | ||
| Income tax payable | 318 | 611 | ||||
| Lease liabilities | 644 | 827 | ||||
| Accrued expenses and other current liabilities | 5,090 | 4,839 | ||||
| Total Current Liabilities | 13,886 | 11,144 | ||||
| OTHER LONG-TERM LIABILITIES | ||||||
| Accrued pension liabilities | 193 | 214 | ||||
| Deferred income tax liabilities | 629 | 589 | ||||
| Lease liabilities | 1,752 | 1,932 | ||||
| Other liabilities | 66 | 65 | ||||
| Total Other Long-Term Liabilities | 2,640 | 2,800 | ||||
| Total Liabilities | 16,526 | 13,944 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||
| SHAREHOLDERS’ EQUITY | ||||||
| Preference shares at | ||||||
| Authorized – 250,000,000 shares | - | - | ||||
| Ordinary shares at | ||||||
| Authorized – 4,750,000,000 shares | ||||||
| Issued – 1,669,036,600 shares as of June 30, 2020 and December 31, 2019 Outstanding – 1,350,163,600 and 1,314,798,600 shares as of June 30, 2020 and December 31, 2019, respectively | 33 | 33 | ||||
| Additional paid-in capital | 142,926 | 143,484 | ||||
| Accumulated deficits | (53,987 | ) | (51,773 | ) | ||
| Accumulated other comprehensive income | 4,573 | 4,654 | ||||
| Treasury stock – 318,873,000 and 354,238,000 shares as of June 30, 2020 and December 31, 2019, respectively | (19,063 | ) | (21,343 | ) | ||
| Total Shareholders’ Equity | 74,482 | 75,055 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 91,008 | $ | 88,999 | ||
(1) Property and equipment- net includes right-of-used assets under operating lease of
O2Micro Daniel Meyberg Investor Relations
FAQ
What was O2Micro's revenue for Q2 2020?
What is the expected revenue range for O2Micro in Q3 2020?
What was the net income reported by O2Micro for Q2 2020?
How did O2Micro's gross margin change in Q2 2020?
