O2Micro Reports Fourth Quarter Earnings
Date | 5-Feb-2004 |
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O2Micro Reports Fourth Quarter Earnings and Record High Sales
O2Micro(R) International Limited (Nasdaq:OIIM), a leading supplier of innovative power management and security ICs, reported its financial results today for the fourth quarter and the fiscal year ended December 31, 2003. Net sales for the fourth quarter were $25.2 million, a record high quarter for O2Micro. Fourth quarter revenue of $25.2 million was an increase of 9% over the preceding quarter, and 37% over the comparable quarter of the prior year. Earnings per share for the fourth quarter, fully diluted, were 13 cents per share, compared to 10 cents per share in the preceding quarter and 6 cents per share in the comparable quarter of the prior year. Net income for the fourth quarter of $5,116,000 was an increase of 29% from the preceding quarter, and an increase of 138% from the comparable quarter of the prior year. Fourth quarter R&D expenditures were $4,619,000, a decrease of 5% over the preceding quarter, and 7% from the comparable quarter of the prior year. For the fiscal year ended December 31, 2003, total revenues were $88.6 million, an increase of 26% from $70.2 million in fiscal year 2002. Earnings per share for the year ended December 31, 2003 were 33 cents fully diluted, compared to 27 cents for the previous year. Net income was $13.2 million, compared to $10.7 million for the previous year. R&D expenditures were $19.2 million, compared to $18.9 million for the previous year, an increase of 1%. "In Q4 we continued to grow revenue and market share in key product areas," said Sterling Du, Chairman and CEO of O2Micro. "We also focused on IP protection, an area that is key to our future growth." Conference Call: O2Micro will hold its fourth quarter conference call today at 2:00 p.m. PST, 5:00 p.m. EST. You may participate by dialing (800) 915-4836 or (973) 317-5319 (for International participants), no passcode required. A replay of the call will be available by phone until February 11th by dialing (800) 428-6051 or (973) 709-2089 (for International participants), passcode #329728. A live simulcast will also be available on the company website at www.o2micro.com, and an online replay will be available on the site for one week.
About O2Micro
Founded in April 1995, O2Micro designs, develops and markets innovative power management and security components for mobile communication, computer, information appliance, and LCD products. Products include Intelligent Lighting, Battery Charger and Management, DC/DC Converter, SmartCardBus(R) and 4-in-1 MemoryCardBus(TM) ICs. O2Micro International maintains an extensive portfolio of intellectual property with 1391 patent claims granted, and over 5000 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.
Statements made in this release that are not historical, including statements regarding O2Micro's or 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. 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 developments 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.
Note: In "O2Micro," the 2 should read as subscript. -0-
O2Micro International Limited and Subsidiaries Consolidated Statements of Operations and Comprehensive Income (In Thousand U.S. Dollars, Except Per Share Amounts)
Three Months Ended Years Ended December 31, December 31, ----------------------- ----------------- (Unaudited) (Unaudited) 2003 2002 2003 2002 ----------- ----------- ------- -------
NET SALES $25,170 $18,393 $88,599 $70,187
COST OF SALES 10,665 7,736 38,314 28,143 ------- ------- ------- -------
GROSS PROFIT 14,505 10,657 50,285 42,044 ------- ------- ------- -------
OPERATING EXPENSES Research and development 4,619 4,987 19,219 18,935 Selling, general and administrative 4,279 3,529 17,476 12,325 Stock-based compensation - 2 - 44 ------- ------- ------- ------- Total Operating Expenses 8,898 8,518 36,695 31,304 ------- ------- ------- -------
INCOME FROM OPERATIONS 5,607 2,139 13,590 10,740 ------- ------- ------- -------
NONOPERATING INCOME (EXPENSES) Interest income 331 313 1,283 1,802 Impairment loss on investment in shares of stocks - - (17) (483) Interest expenses - (1) (1) (4) Exchange gain (loss) (166) (79) 287 4 Other - net (3) 141 (115) 343 ------- ------- ------- ------- Total Nonoperating Income 162 374 1,437 1,662 ------- ------- ------- -------
INCOME BEFORE INCOME TAX 5,769 2,513 15,027 12,402
INCOME TAX EXPENSES 653 366 1,826 1,673 ------- ------- ------- -------
NET INCOME 5,116 2,147 13,201 10,729
OTHER COMPREHENSIVE GAIN (LOSS) Translation adjustments on subsidiaries - 61 (90) 132 Unrealized gain (loss) on available-for-sale securities (83) (59) 261 (127) ------- ------- ------- ------- Total Other Comprehensive Gain (Loss) (83) 2 171 5 ------- ------- ------- -------
COMPREHENSIVE INCOME $ 5,033 $ 2,149 $13,372 $10,734 ======= ======= ======= =======
EARNINGS PER SHARE: Basic $ 0.13 $ 0.06 $ 0.34 $ 0.28 ======= ======= ======= ======= Diluted $ 0.13 $ 0.06 $ 0.33 $ 0.27 ======= ======= ======= =======
SHARES USED IN EARNINGS PER SHARE CALCULATION: Basic (in thousands) 38,846 38,116 38,374 38,300 ======= ======= ======= ======= Diluted (in thousands) 40,683 38,921 39,736 39,590 ======= ======= ======= =======
O2Micro International Limited and Subsidiaries Consolidated Balance Sheets (In Thousand U.S. Dollars, Except Share Amounts)
December 31, December 31, ASSETS 2003 2002 ------- ----------- ------------
CURRENT ASSETS Cash and cash equivalents $ 66,489 $ 69,334 Restricted cash 1,892 2,019 Short-term investments 53,923 42,675 Accounts receivable - net 9,794 7,595 Inventories 9,613 6,967 Prepaid expenses and other current assets 3,365 2,891 -------- --------- Total Current Assets 145,076 131,481 -------- ---------
INVESTMENT IN SHARES OF STOCKS 7,865 5,985 -------- ---------
FIXED ASSETS - NET 4,880 5,611 -------- --------- OTHER ASSETS Restricted assets - net 10,044 - -------- --------- Convertible loans to 3600 Web Ltd. - 1,750 -------- --------- Other Assets 1,428 1,009 -------- ---------
TOTAL ASSETS $ 169,293 $ 145,836 ======== =========
LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------
CURRENT LIABILITIES Notes and accounts payable $ 6,334 $ 5,202 Income tax payable 2,852 1,957 Current portion of obligations under capital lease 1 7 Accrued expenses and other current liabilities 5,379 3,522 -------- --------- Total Current Liabilities 14,566 10,688 -------- ---------
OBLIGATIONS UNDER CAPITAL LEASE - NET OF CURRENT PORTION - - -------- ---------
Total Liabilities 14,566 10,688 -------- ---------
CONTINGENCIES AND COMMITMENTS
SHAREHOLDERS' EQUITY Preference shares at $0.001 par value per share - - Ordinary shares at $0.001 par value per share Authorized - 95,000,000 shares Issued - 39,032,616 shares as of December 31, 2003 and 38,857,094 shares including 720,700 shares of treasury stock as of December 31, 2002, respectively 39 39 Treasury Stock - (6,823) Additional paid-in capital 137,076 133,016 Accumulated other comprehensive loss (521) (692) Retained earnings 18,133 9,608 -------- --------- Total Shareholders' Equity 154,727 135,148 -------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 169,293 $ 145,836 ======== =========
CONTACT: O2Micro Gil Goodrich, 408-987-5920 x8013 gil.goodrich@o2micro.com |