O2Micro International Limited Reports Third Quarter 2014 Financial Results
Date | 30-Oct-2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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GEORGE TOWN, Grand Cayman, Oct. 30, 2014 (GLOBE NEWSWIRE) -- Operational and Strategic Highlights: 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 third
quarter of 2014, ending September 30, 2014. Financial Highlights for the Third Quarter ending September 30,
2014: O2Micro International Limited reported Q3 2014 revenue of $15.4
million. Revenue was down 12% sequentially and down 17% from the comparable
year-ago quarter. The gross margin in the third quarter of 2014 was 51.8%. The
gross margin was up from 51.5% in the prior quarter and up from 51.4% in the
third quarter of 2013. The gross margin remains in our target range and varies
primarily with revenue level and product mix. During the third quarter of 2014,
the company recorded total GAAP operating expenses of $11.5 million, compared to
$12.1 million in the second quarter of 2014 and $14.2 million in the year-ago Q3
period. The respective GAAP operating margins for the third quarter of 2014, the
second quarter of 2014, and third quarter of 2013 were (23.0%), (17.9%), and
(25.1%). GAAP net loss was $2.9 million in Q3 2014. This compares to a GAAP net loss
of $3.2 million in the second quarter of 2014 and a GAAP net loss of $4.5
million in Q3 2013. GAAP net loss per fully diluted ADS was $0.11 in Q3 2014.
This compares to a GAAP net loss per fully diluted ADS of $0.12 in Q2 2014 and a
GAAP net loss per fully diluted ADS of $0.16 in Q3 2013. Financial Highlights for the Nine Months ending September 30,
2014: O2Micro International Limited reported revenue of $49.3 million
for the nine months ending September 30, 2014. This was down 9.9% from $54.7
million in the comparable nine months of 2013. The gross margins were 51.6% and
50.9% during the corresponding periods of 2014 and 2013, respectively. GAAP
operating expenses were $35.2 million and $42.9 million in the first nine months
of 2014 and 2013, respectively. The respective GAAP operating margins for the
comparable periods were (19.8%) and (27.6%). Pretax loss from continuing
operations was $8.3 million in the first nine months of 2014. This compares to a
pretax loss from continuing operations of $13.3 million in the first nine months
of 2013. GAAP net loss was $9.0 million in the first nine months of 2014. This
compares to a GAAP net loss of $14.0 million in the first nine months of 2013.
The GAAP net loss per fully diluted ADS was $0.33 in the first nine months of
2014. This compares to a GAAP net loss per fully diluted ADS of $0.48 in the
first nine months of 2013. Supplementary Data: The company ended the third quarter of 2014 with $64.9 million in
unrestricted cash and short-term investments or $2.40 per outstanding ADS. The
accounts receivable balance was $8.3 million and represented 54 days sales
outstanding at the end of Q3 2014. Inventory was $10.2 million or 120 days and
turned over 3.0 times during Q3 2014. As of September 30, 2014, the company had
$75.3 million in working capital and the book value was $114.7 million, or $4.25
per outstanding ADS. As of September 30, 2014, O2Micro International Limited counted
478 employees, including 281 engineers. Management Commentary: "Our third quarter results were in-line with the updated guidance that we
provided in early October and reflect a difficult quarter in our power
management business for notebooks," said Sterling Du, O2Micro's
Chairman and CEO. "Despite the unexpected issue with one of our charger IC
products in the quarter, we are very confident that our new target of
penetrating the white-box smartphone and tablet markets with multiple products,
coupled with ongoing growth in our carefully chosen growth drivers including LED
general lighting, backlighting and battery management products, will contribute
to top-line growth in upcoming quarters and lead O2Micro back to
profitability in the near future." Conference Call: O2Micro will hold its third
quarter conference call today, October 30, 2014, at 6:00 a.m. PDT, 9:00 a.m.
EDT. You may participate using the following dial-in information.
A replay of the call will be available by phone for one week following the live call. The replay can be accessed using the following dial-in information.
A live webcast will also be available on the company website at www.o2Micro.com, and an online replay will be available for one week. About O2Micro Founded in April 1995, O2Micro develops and markets innovative power management components for the Computer, Consumer, Industrial, Automotive and Communications markets. Products include LED General Lighting, Backlighting, Battery Management and Power Management. O2Micro International maintains an extensive portfolio of intellectual property with 27,716 patent claims granted, and over 28,000 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, 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 O2 Micro'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 O2Mcro'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.
CONTACT: Scott L. Anderson Director of Investor Relations, O2Micro Phone: 408.987.5920, x8888 Email: scott.anderson@O2Micro.com |