O2Micro Updates Guidance for Fourth Quarter

Tuesday December 11, 8:30 am ET

Company Anticipates Gross Margin Improvement and Reinitiates Stock Repurchase


GEORGE TOWN, Grand Cayman--(BUSINESS WIRE)--O2Micro® International Limited (NASDAQ :OIIM)(SEHK:0457 - News), a leading supplier of innovative power management, and security components and systems, announced today that it anticipates the growth rate of fourth quarter revenue to be between 2% to 5%, narrowed from the previous guidance. As a result of product mix improvement, the Company also sees gross margin improvement.

Sterling Du, Chairman and CEO, O2Micro, stated, “With our focus on the basic fundamentals of our business and improved product mix, our gross margins have continued to improve. Therefore, we are utilizing cash flow generated by record sales to buy company stock in the open market.” Mr. Du continued, “Given the price of our stock, which we believe is undervalued versus that of our peer group, our strong cash flow generation and solid financial position, the company will continue to repurchase stock in the open market from time to time.”


About O2Micro


Founded in April 1995, O2Micro develops and markets innovative power management, and security components and systems for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, SmartCardBus® and Security products, such as VPN/Firewall system solutions.


O2Micro International maintains an extensive portfolio of intellectual property with 8,490 patent claims granted, and over 9,000 more pending. 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, SmartCardBus, and combinations thereof are registered trademarks of O2Micro. All other trademarks are the property of their respective owners.


Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They include statements regarding O2Micro's future growth, long term profitability, increases in shareholder value, expansion of O2Micro's product and patent portfolios, legal expenditures, litigation activity and other statements regarding O2Micro's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Factors that could cause actual results to differ materially include risks and uncertainties such as reduced demand for products of electronic equipment manufacturers which include O2Micro's products due to adverse economic conditions in general or specifically affecting O2Micro's markets, technical difficulties and delays in the development process, and errors in the products. You are also referred to the Form F-1 in connection with the company's initial public offering in August 2000, Form F-3 in connection with the company's public offering in November 2001, and the annual reports on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The company assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.




Mitchell Benus, 408-332-1749

Director of Investor Relations




Source: O2Micro International Limited