O2Micro Reports Second Quarter 2022 Financial Results

Jul 29th, 2022 12:00 EST

GEORGE TOWN, Grand Cayman, July 29, 2022 (GLOBE NEWSWIRE) --

Operational Highlights:

  • 2022 Q2 revenue was $22.1 million.
  • Revenue increased 2% compared to prior quarter.
  • O2Micro expects the third quarter 2022 revenue to be in the range of $17.0 million to $19.0 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, 2022.

Financial Highlights for the Second Quarter ending June 30, 2022: O2Micro reported the second quarter 2022 revenue of $22.1 million within the guidance announced on May 6, 2022. Revenue was down 15.8% from the same quarter in the previous year. The gross margin in the second quarter of 2022 was 52.6 %, which was up from 51.5% in the same quarter of 2021. During the second quarter of 2022, the Company recorded total GAAP operating expenses of $11.1 million and was up from $10.2 million in the same quarter of 2021. The GAAP operating margins for the second quarter of 2022 was 2.1% compared to 12.5% in the same quarter of 2021. The Company reported 2022 Q2 GAAP net income of $555,000, or $0.02 per fully diluted ADS, compared to a GAAP net income of $3.2 million or $0.10 per fully diluted ADS in the comparable quarter of 2021.

Supplementary Data: The Company ended the second quarter of 2022 with $49.5 million in unrestricted cash and short-term investments or $1.70 per outstanding ADS, along with 324 employees worldwide of which 184 are engineers.

Management Commentary: “O2Micro’s increasing active design wins with new technologies show strong acceptance by our customers in both LCD backlighting and battery products. It shows the long-term growth drivers continue its momentum despite current inventory correction headwind. The growth drivers include vacuum cleaners, E Bikes, televisions, and high-end monitors, power tools and energy storage system,” said Sterling Du, O2Micro’s Chairman and CEO “Our rich global patent portfolio highlights our commitment to designing leading edge technologies for our customers. These along with continued management of operational costs, are leading O2Micro into sustainable long-term profitability.”

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME follows conference call information below

Conference Call: O2Micro will hold its second quarter conference call on July 29th, 2022, at 6:00AM. Pacific, 9:00AM Eastern. You may participate using the following dial-in information.

O2Micro International Limited (NASDAQ Global: OIIM) earnings callParticipants, Int'l Toll: 1-412-317-6060Participants, US/CAN: 1-866-652-5200Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Yci0pImJ

A live webcast will also be available on the Company's website at http://ir.o2micro.com, and an online replay will be available following the call from July 29, 2022, at 12:00PM Eastern Time (US & Canada) through August 05, at 12:00PM Eastern Time (US & Canada) https://services.choruscall.com/ccforms/replay.html   Replay access code: 9160803

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, and Battery 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 EndedSix Months Ended
 June 30,June 30,
  2022  2021  2022  2021 
    
OPERATING REVENUES$22,058 $26,205 $43,683 $49,441 
     
COST OF REVENUES 10,447  12,718  20,704  23,964 
     
GROSS PROFIT 11,611  13,487  22,979  25,477 
     
OPERATING EXPENSES    
Research and development (1) 4,918  4,741  9,888  9,307 
Selling, general and administrative (1) 6,224  5,465  11,789  10,521 
     
Total Operating Expenses 11,142  10,206  21,677  19,828 
     
INCOME FROM OPERATIONS 469  3,281  1,302  5,649 
     
NON-OPERATING INCOME    
Interest income 80  62  140  138 
Foreign exchange gain (loss) – net 38  (70) 140  (28)
Government grants 75  28  86  138 
Other – net 125  113  237  243 
Total Non-operating Income 318  133  603  491 
     
INCOME BEFORE INCOME TAX 787  3,414  1,905  6,140 
     
INCOME TAX EXPENSE 232  253  435  497 
     
NET INCOME 555  3,161  1,470  5,643 
     
OTHER COMPREHENSIVE (LOSS) INCOME    
Foreign currency translation adjustments (1,066) 384  (1,279) 184 
Unrealized pension gain                         1                          1                          2                          1 
Total Other Comprehensive (Loss) Income                         (1,065)                         385                          (1,277)                         185 
     
COMPREHENSIVE (LOSS) INCOME$                        (510)$                        3,546 $                        193 $                        5,828 
     
EARNINGS PER ADS    
Basic$                        0.02 $                        0.11 $                        0.05 $                        0.20 
Diluted$                        0.02 $                        0.10 $                        0.05 $                        0.18 
     
ADS UNITS USED IN EARNINGS PER ADS CALCULATION:    
Basic (in thousands)                         29,151                          28,435                          29,057                          28,245 
Diluted (in thousands)                         30,396                          31,063                          30,502                          31,323 
     
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:    
Research and development$                        210 $                        105 $                        417 $                        196 
Selling, general and administrative$                        376 $                        337 $                        743 $                        651 

O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS(In Thousand U.S. Dollars, Except Share Amounts)

 June 30,December 31,
          2022                    2021           
ASSETS(Unaudited)(Audited)
   
CURRENT ASSETS  
Cash and cash equivalents$                        27,526 $                        20,780 
Restricted cash                         36                          39 
Short-term investments                         21,935                          29,186 
Accounts receivable – net                         17,187                          18,784 
Inventories                         21,559                          19,523 
Prepaid expenses and other current assets                         1,728                          2,087 
Total Current Assets                         89,971                          90,399 
   
LONG-TERM INVESTMENTS                         992                          992 
   
PROPERTY AND EQUIPMENT – NET                         22,968                          23,611 
   
OTHER ASSETS                         4,237                          3,340 
   
TOTAL ASSETS$                        118,168 $                        118,342 
   
LIABILITIES AND SHAREHOLDERS’ EQUITY  
   
CURRENT LIABILITIES  
Accounts payable$                        6,860 $                        9,175 
Income tax payable                         183                          307 
Lease liabilities                         1,128                          1,076 
Accrued expenses and other current liabilities                         6,331                          5,773 
Total Current Liabilities                         14,502                          16,331 
   
OTHER LONG-TERM LIABILITIES  
Accrued pension liabilities                         123                          147 
Deferred income tax liabilities                         672                          537 
Lease liabilities                         1,637                          1,775 
Other liabilities                         66                          68 
Total Other Long-Term Liabilities                         2,498                          2,527 
   
Total Liabilities                         17,000                          18,858 
   
COMMITMENTS AND CONTINGENCIES  
   
SHAREHOLDERS’ EQUITY  
Preference shares at $0.00002 par value per share  
Authorized – 250,000,000 shares                         -                          - 
Ordinary shares at $0.00002 par value per share  
Authorized – 4,750,000,000 shares  
Issued – 1,669,036,600 shares as of June 30, 2022 and December 31, 2021 Outstanding – 1,457,751,050 and 1,424,760,750 shares as of June 30, 2022 and December 31, 2021, respectively                         33                          33 
Additional paid-in capital                         143,377                  143,540 
Accumulated deficits                         (33,924)                         (35,158)
Accumulated other comprehensive income                         4,596                          5,873 
Treasury stock – 211,285,550 and 244,275,850 shares as of June 30, 2022 and         December 31, 2021, respectively                         (12,914)                         (14,804)
Total Shareholders’ Equity                         101,168                          99,484 
   
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$                        118,168 $                        118,342 

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