Operational and Strategic Highlights:
- O2Micro continues to lower operating expenses. Company lowers
fiscal year 2015 operating expenses by $7.4 million on a
year-over-year basis
- Lower operating expense levels reflect new cash breakeven level
estimate of $16.5-$17.5 million and new profitability breakeven
level estimate of $18.5-$19.5 million on a quarterly basis
- Expects revenue to be down 5 percent to up two percent
sequentially in the first quarter of fiscal year 2016
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 fourth quarter and fiscal year 2015, ending December
31, 2015.
Financial Highlights for the Fourth Quarter ending
December 31, 2015:
O2Micro International Limited reported Q4 2015 revenue of $13.4
million. Revenue was down 2% sequentially and down 7% from the
comparable year-ago quarter. The gross margin in the fourth quarter
of 2015 was 50.4%. The gross margin was down from 52.0% in the
prior quarter and down from 51.0% in the fourth quarter of 2014.
The gross margin remains in our target range and varies primarily
with revenue level and product mix. During the fourth quarter of
2015, the company recorded total GAAP operating expenses of $11.3
million, compared to $10.5 million in the third quarter of 2015 and
$14.4 million in the year-ago Q4 period. The respective GAAP
operating margins for the fourth quarter of 2015, the third quarter
of 2015, and fourth quarter of 2014 were (34.1%), (25.0%), and
(49.2%).
GAAP net loss was $12.8 million in Q4 2015. This compares to a
GAAP net loss of $2.4 million in the third quarter of 2015 and a
GAAP net loss of $6.0 million in Q4 2014. GAAP net loss per fully
diluted ADS was $0.50 in Q4 2015. This compares to a GAAP net loss
per fully diluted ADS of $0.09 in Q3 2015 and a GAAP net loss per
fully diluted ADS of $0.23 in Q4 2014.
Financial Highlights for the Twelve Months ending
December 31, 2015:
O2Micro International Limited produced revenue of $54.8 million
in 2015. Revenue was down by 13.8% from 2014 when the company
reported revenue of $63.6 million. The gross margin in 2015 was
50.5%, compared to 51.5% in 2014. GAAP operating expenses totaled
$42.1 million and $49.6 million in 2015 and 2014, respectively. The
GAAP operating loss was $14.4 million in 2015 compared to a GAAP
operating loss of $16.8 million in 2014. The corresponding GAAP
operating margins were (26.3%) and (26.5%) in 2015 and 2014,
respectively. Pretax loss from continuing operations was $16.5
million in 2015, compared to a pretax loss from continuing
operations of $13.9 million in 2014. GAAP net loss in 2015 was
$21.1 million, compared to a GAAP net loss of $15.1 million in
2014. The corresponding GAAP net loss per fully diluted ADS was
$0.81 in 2015, compared to a GAAP net loss per fully diluted ADS of
$0.55 in 2014.
Supplementary Data:
The company ended the fourth quarter of 2015 with $52.4 million
in unrestricted cash and short-term investments or $2.05 per
outstanding ADS. The accounts receivable balance was $5.2 million
and represented 41 days sales outstanding at the end of Q4 2015.
Inventory was $9.7 million or 128 days and turned over 2.8 times
during Q4 2015. As of December 31, 2015, the company had $57.7
million in working capital and the book value was $83.1 million, or
$3.25 per outstanding ADS.
As of December 31, 2015, O2Micro International Limited counted
357 employees, including 194 engineers.
Management Commentary:
“We are very confident that our targets of penetrating the high
end 4K TV market and the white-box smartphone and tablet markets,
coupled with ongoing growth in our carefully chosen growth drivers
including LED general lighting products and battery management
products for the power tool market, will contribute to top-line
growth in upcoming quarters and lead O2Micro back to profitability
in the near future,” said Sterling Du, O2Micro’s Chairman and CEO.
“Meanwhile, we are taking the necessary steps to focus our
resources on our key customer accounts and key markets, as well as
being financially focused on expense reduction management. “
Conference Call: O2Micro will hold its
fourth quarter conference call today, January 27, 2016, at 6:00
a.m. PST, 9:00 a.m. EST. You may participate using the following
dial-in information.
In the US and CANADA:
800-499-4035, pass code
#4400544INTERNATIONAL
participants:
416-204-9269, pass code #4400544
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.
In the US and CANADA:
888-203-1112, pass code
#4400544INTERNATIONAL participants:
719-457-0820, pass code #4400544
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 over 1,600 patents issued Worldwide, and
over 33,000 patent claims granted. 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 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.
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, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
(Unaudited) |
(Unaudited) |
(audited) |
|
|
|
NET SALES |
$ |
13,379 |
|
|
$ |
14,330 |
|
|
$ |
54,841 |
|
|
$ |
63,591 |
|
|
|
|
|
|
|
COST OF SALES |
|
6,636 |
|
|
|
7,028 |
|
|
|
27,145 |
|
|
|
30,856 |
|
|
|
|
|
|
|
GROSS PROFIT |
|
6,743 |
|
|
|
7,302 |
|
|
|
27,696 |
|
|
|
32,735 |
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
Research and development
(1) |
|
5,487 |
|
|
|
8,296 |
|
|
|
18,493 |
|
|
|
24,625 |
|
|
Selling, general and
administrative (1) |
|
5,814 |
|
|
|
6,057 |
|
|
|
23,632 |
|
|
|
24,933 |
|
|
Total Operating
Expenses |
|
11,301 |
|
|
|
14,353 |
|
|
|
42,125 |
|
|
|
49,558 |
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS |
|
(4,558 |
) |
|
|
(7,051 |
) |
|
|
(14,429 |
) |
|
|
(16,823 |
) |
|
|
|
|
|
|
NON-OPERATING
INCOME |
|
|
|
|
Interest income |
|
106 |
|
|
|
244 |
|
|
|
681 |
|
|
|
1,035 |
|
|
Foreign exchange gain –
net |
|
39 |
|
|
|
415 |
|
|
|
730 |
|
|
|
589 |
|
|
Impairment loss on
long-term investments |
|
(4,953 |
) |
|
|
- |
|
|
|
(4,953 |
) |
|
|
- |
|
|
Gain on sale of real
estate |
|
- |
|
|
|
458 |
|
|
|
767 |
|
|
|
458 |
|
|
Other – net |
|
394 |
|
|
|
375 |
|
|
|
749 |
|
|
|
868 |
|
|
Total Non-operating
Income (Loss) |
|
(4,414 |
) |
|
|
1,492 |
|
|
|
(2,026 |
) |
|
|
2,950 |
|
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX |
|
(8,972 |
) |
|
|
(5,559 |
) |
|
|
(16,455 |
) |
|
|
(13,873 |
) |
|
|
|
|
|
|
INCOME TAX EXPENSE |
|
3,825 |
|
|
|
450 |
|
|
|
4,640 |
|
|
|
1,184 |
|
|
|
|
|
|
|
NET LOSS |
|
(12,797 |
) |
|
|
(6,009 |
) |
|
|
(21,095 |
) |
|
|
(15,057 |
) |
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME |
|
|
|
|
Foreign currency
translation adjustments |
|
(192 |
) |
|
|
(696 |
) |
|
|
(1,945 |
) |
|
|
(1,416 |
) |
|
Unrealized loss on
available-for-sale securities |
|
- |
|
|
|
(166 |
) |
|
|
- |
|
|
|
(398 |
) |
|
Unrealized pension
(loss) gain |
|
(4 |
) |
|
|
65 |
|
|
|
1 |
|
|
|
70 |
|
|
Total Other
Comprehensive Loss |
|
(196 |
) |
|
|
(797 |
) |
|
|
(1,944 |
) |
|
|
(1,744 |
) |
|
|
|
|
|
|
COMPREHENSIVE LOSS |
$ |
(12,993 |
) |
|
$ |
(6,806 |
) |
|
$ |
(23,039 |
) |
|
$ |
(16,801 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED LOSS
PER ADS |
$ |
(0.50 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.81 |
) |
|
$ |
(0.55 |
) |
|
|
|
|
|
|
ADS UNITS USED IN LOSS
PER ADS CALCULATION: |
|
|
|
|
Basic (in
thousands) |
|
25,627 |
|
|
|
26,690 |
|
|
|
26,029 |
|
|
|
27,249 |
|
|
Diluted (in
thousands) |
|
25,627 |
|
|
|
26,690 |
|
|
|
26,029 |
|
|
|
27,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) INCLUDES
STOCK-BASED COMPENSATION CHARGE AS FOLLOWS: |
|
|
|
|
Research and
development |
$ |
76 |
|
|
$ |
99 |
|
|
$ |
322 |
|
|
$ |
489 |
|
|
Selling, general and
administrative |
$ |
388 |
|
|
$ |
399 |
|
|
$ |
1,590 |
|
|
$ |
1,631 |
|
|
|
|
|
|
|
O2MICRO INTERNATIONAL LIMITED AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
(In Thousand U.S. Dollars, Except Share
Amounts) |
|
December 31, |
December 31, |
|
|
2015 |
|
|
|
2014 |
|
ASSETS |
(Unaudited) |
(Audited) |
|
|
|
CURRENT ASSETS |
|
|
Cash and cash
equivalents |
$ |
41,199 |
|
|
$ |
41,069 |
|
Restricted cash |
|
31 |
|
|
|
164 |
|
Short-term
investments |
|
11,233 |
|
|
|
21,481 |
|
Accounts receivable –
net |
|
5,197 |
|
|
|
6,789 |
|
Inventories |
|
9,662 |
|
|
|
8,642 |
|
Prepaid expenses and other
current assets |
|
1,126 |
|
|
|
1,308 |
|
Assets held for sale |
|
1,956 |
|
|
|
- |
|
Total Current Assets |
|
70,404 |
|
|
|
79,453 |
|
|
|
|
LONG-TERM INVESTMENTS |
|
9,304 |
|
|
|
14,754 |
|
|
|
|
PROPERTY AND EQUIPMENT –
NET |
|
14,011 |
|
|
|
19,363 |
|
|
|
|
OTHER ASSETS |
|
2,489 |
|
|
|
3,168 |
|
|
|
|
TOTAL ASSETS |
$ |
96,208 |
|
|
$ |
116,738 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
Notes and accounts
payable |
$ |
3,333 |
|
|
$ |
2,131 |
|
Income tax payable |
|
2,245 |
|
|
|
650 |
|
Accrued expenses and other
current liabilities |
|
7,102 |
|
|
|
6,049 |
|
Total Current
Liabilities |
|
12,680 |
|
|
|
8,830 |
|
|
|
|
OTHER LONG-TERM
LIABILITIES |
|
|
Accrued pension
liabilities |
|
272 |
|
|
|
293 |
|
Other liabilities |
|
139 |
|
|
|
349 |
|
Total Other Long-Term
Liabilities |
|
411 |
|
|
|
642 |
|
|
|
|
Total Liabilities |
|
13,091 |
|
|
|
9,472 |
|
|
|
|
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 –
1,660,786,600 shares Outstanding –1,278,661,400 and
1,327,260,450 shares as of December 31, 2015 and 2014,
respectively |
|
33 |
|
|
|
33 |
|
Additional paid-in
capital |
|
141,886 |
|
|
|
141,229 |
|
Accumulated deficits |
|
(38,386 |
) |
|
|
(17,291 |
) |
Accumulated other
comprehensive income |
|
4,824 |
|
|
|
6,768 |
|
Treasury stock –
382,125,200 and 333,526,150 shares as of December 31, 2015 and
2014, respectively |
|
(25,240 |
) |
|
|
(23,473 |
) |
Total Shareholders’
Equity |
|
83,117 |
|
|
|
107,266 |
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
96,208 |
|
|
$ |
116,738 |
|
|
|
|
|
|
|
|
|
Contact Information:
Scott L. Anderson
Director of Investor Relations, O2Micro
Phone: 408.987.5920, x8888
Email: scott.anderson@o2micro.com
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