O2Micro Reports Second Quarter 2021 Financial Results
07/30/2021 - 08:00 AM
GEORGE TOWN, Grand Cayman, July 30, 2021 (GLOBE NEWSWIRE) --
Operational Highlights:
2021 Q2 revenue was $26.2 million . Revenue increased 51.6% compared to the same quarter in 2020. GAAP net income was $0.10 per fully diluted ADS, up from $0.01 per ADS, for the same quarter a year ago. O2Micro expects the third quarter 2021 revenue to be in the range of $26.2 million to $27.5 million . 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 second quarter ending June 30, 2021.
Financial Highlights for the Second Quarter ending June 30, 2021: $26.2 million which exceeded guidance provided on June 30, 2021. Revenue was up 51.6% from the same quarter in the previous year. The gross margin in the second quarter of 2021 was 51.5% , which was up from 51.2% in the same quarter of 2020. During the second quarter of 2021, the Company recorded total GAAP operating expenses of $10.2 million and was up from $9.5 million in the second quarter of 2020. The GAAP operating margins for the second quarter of 2021 was 12.5% compared to (3.9% ) in the second quarter of 2020. The Company reported 2021 Q2 GAAP net income of $3.2 million , or $0.10 per fully diluted ADS, compared to a GAAP net income of $380 thousand or $0.01 per ADS in the comparable quarter of 2020.
Supplementary Data: $47.4 million in unrestricted cash and short-term investments or $1.66 per outstanding ADS, along with 341 employees worldwide of which 200 are engineers.
Management Commentary: 12.8% from the prior quarter and 51.6% over the same quarter in 2020. Our strong business came from both LCD backlighting and battery products. The cohesive flexible working hours between work from home and office continue to fuel the high demand of TV, Monitor and household battery powered appliances. Our battery business grew strongly in all sectors, while our intelligent lighting group continued seeing the benefit of post pandemic trends.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME follows conference call information below
Conference Call:
Participants, Int'l Toll: +1 323-289-6576
The Call-in Audio Replay will be available following the call at 12:00PM Eastern Time (US & Canada) for the next 14 days. https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6VkllT3FYbjdCajcvWkEzWEdQRWVkVjVnNFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlREWDdudzQzUmR2aFNnZDc4WHhCa3JBPT0= https://ir.o2micro.com following the conference.
About O2Micro: 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.
O 2 MICRO 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, 2021 2020 2021 2020 OPERATING REVENUES $ 26,205 $ 17,284 $ 49,441 $ 32,865 COST OF REVENUES 12,718 8,431 23,964 15,921 GROSS PROFIT 13,487 8,853 25,477 16,944 OPERATING EXPENSES Research and development (1) 4,741 5,025 9,307 9,166 Selling, general and administrative (1) 5,465 4,503 10,521 9,024 Total Operating Expenses 10,206 9,528 19,828 18,190 INCOME (LOSS) FROM OPERATIONS 3,281 (675 ) 5,649 (1,246 ) NON-OPERATING INCOME (LOSS) Interest income 62 157 138 344 Net gain (loss) recognized on long-term investments - 1,059 - (41 ) Foreign exchange loss – net (70 ) (92 ) (28 ) (60 ) Government grants 28 75 138 84 Other – net 113 118 243 226 Total Non-operating Income (Loss) 133 1,317 491 553 INCOME (LOSS) BEFORE INCOME TAX 3,414 642 6,140 (693 ) INCOME TAX EXPENSE 253 262 497 467 NET INCOME (LOSS) 3,161 380 5,643 (1,160 ) OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustments 384 164 184 (82 ) Unrealized pension gain 1 1 1 1 Total Other Comprehensive Income (Loss) 385 165 185 (81 ) COMPREHENSIVE INCOME (LOSS) $ 3,546 $ 545 $ 5,828 $ (1,241 ) EARNINGS (LOSS) PER ADS Basic $ 0.11 $ 0.01 $ 0.20 $ (0.04 ) Diluted $ 0.10 $ 0.01 $ 0.18 $ (0.04 ) ADS UNITS USED IN LOSS PER ADS CALCULATION: Basic (in thousands) 28,435 26,991 28,245 26,856 Diluted (in thousands) 31,063 27,726 31,323 26,856 (1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS: Research and development $ 105 $ 67 $ 196 $ 147 Selling, general and administrative $ 337 $ 260 $ 651 $ 577
O 2 MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousand U.S. Dollars, Except Share Amounts) June 30, December 31, 2021 2020 ASSETS (Unaudited) (Audited) CURRENT ASSETS Cash and cash equivalents $ 21,856 $ 18,752 Restricted cash 38 37 Short-term investments 25,497 29,054 Accounts receivable – net 16,555 16,430 Inventories 16,005 12,588 Prepaid expenses and other current assets 4,229 2,548 Total Current Assets 84,180 79,409 LONG-TERM INVESTMENTS 992 992 PROPERTY AND EQUIPMENT – NET 22,113 17,266 OTHER ASSETS 4,397 4,369 TOTAL ASSETS $ 111,682 $ 102,036 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Notes and accounts payable $ 10,132 $ 7,995 Income tax payable 220 272 Lease liabilities 1,018 865 Accrued expenses and other current liabilities 5,317 5,934 Total Current Liabilities 16,687 15,066 OTHER LONG-TERM LIABILITIES Accrued pension liabilities 152 177 Deferred income tax liabilities 651 545 Lease liabilities 1,979 2,091 Other liabilities 69 68 Total Other Long-Term Liabilities 2,851 2,881 Total Liabilities 19,538 17,947 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Preference shares at $0.00 002 par value per share Authorized – 250,000,000 shares - - Ordinary shares at $0.00 002 par value per share Authorized – 4,750,000,000 shares Issued – 1,669,036,600 shares as of June 30, 2021 and December 31, 2020 33 33 Additional paid-in capital 142,569 143,422 Accumulated deficits (41,628 ) (46,744 ) Accumulated other comprehensive income 5,925 5,740 Treasury stock – 246,819,750 and 307,150,600 shares as of June 30, 2021 and (14,755 ) (18,362 ) Total Shareholders’ Equity 92,144 84,089 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 111,682 $ 102,036
