GEORGE TOWN, Grand Cayman, Nov. 3, 2010 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM) reported its financial results today for the third quarter of fiscal 2010, ending September 30, 2010.
Financial Results for the Third Quarter ending 9/30/2010:
Revenue was $34.5 million in the third quarter of fiscal 2010. This was down 13.4% sequentially and 5.8% versus the year-ago period. Gross margin was 61.8% in the third quarter. This was approximately flat with 61.7% in the prior quarter and up from 60.6% in the year-ago period.
Total Q3 operating expenses were $19.3 million, versus $17.3 million in the second quarter, and $21.9 million in the third quarter of 2009. The GAAP operating expenses incurred in the third quarter of 2010 included a one-time asset impairment charge of $2.2 million and there was no comparable charge in the prior or year-ago periods. These results yielded a GAAP operating margin of 6.0% in the third quarter of 2010, compared to 18.3% in the second quarter of 2010, and 1.0% in the third quarter of 2009.
Pretax income was $2.1 million in Q3 2010, down from $7.5 million in Q2 and up from $684,000 in the year-ago quarter. After taxes, the GAAP net income was $1.7 million in Q3, which was also down from $7.1 million in the prior quarter and up from $267,000 in the Q3 2009 period. GAAP net income per fully diluted ADS was $0.05 in Q3 2010 versus $0.20 in Q2 2010 and $0.01 in Q3 2009.
Financial Results for the Nine Months ending 9/30/2010:
Revenue for the first nine months of 2010 was $109.2 million. This compares favorably to $94.4 million in the first nine months of 2009. The gross margin in the nine months ending September 30, 2010 was 61.7%, up from 58.7% in the comparable nine months of last year. GAAP operating expenses declined to $53.8 million in the first nine months of 2010 from $59.1 million in the comparable period of 2009. The GAAP operating expenses in the nine months ending September 30, 2010 also included a one-time asset impairment charge of $2.2 million and there was no comparable charge during the corresponding period of 2009. The GAAP operating margins were 12.5% and (3.9)% in the first nine months of 2010 and 2009, respectively. Pretax income was $14.1 million in the first nine months of 2010 and reversed a pretax loss of $2.5 million in the comparable nine months of 2009. After taxes, GAAP net income was $12.8 million in the first nine months of 2010, compared to a GAAP net loss of $3.8 million in the first nine months of 2009. The corresponding GAAP net income per fully diluted ADS was $0.36 in the first nine months of 2010, which also compares favorably to a GAAP net loss per ADS of $0.10 in the first nine months of 2009.
The company ended the third quarter of 2010 with $108.2 million in unrestricted cash and short-term investments, or $3.21 per outstanding ADS. The ending cash balance comes after the repurchase of 271,109 ADS units in the third quarter for approximately $1.7 million. The accounts receivable balance was $14.3 million and represented 43 days sales outstanding at the end of Q3 2010. Inventory was $14.4 million. Inventory stood at 93 days at the end of the third quarter and turned over 3.9 times during Q3 2010. As of September 30, 2010, the company had $123.0 million in working capital and the book value was $178.9 million, or $5.30 per outstanding ADS.
As of September 30, 2010, O2Micro International Limited counted 839 employees, including 520 engineers.
Sterling Du, Chairman and CEO, commented, "I am pleased that our company remained solidly profitable with high gross and operating margins during this period of oversupply." Mr. Du continued, "At this point, key markets seem to be coming back into balance and we are excited about the breadth of our product line and its potential to drive growth in 2011 and beyond."
Conference Call: O2Micro will hold its third quarter conference call on November 3, 2010 at 7:00 a.m. PDT, 10:00 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 simulcast will also be available on the company website at www.o2micro.com, and an online replay will be available on the company's website for one week.
Founded in April 1995, O2Micro develops and markets innovative power management and security components for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, and SmartCardBus® integrated circuits.
O2Micro International maintains an extensive portfolio of intellectual property with 696 patents and 15,127 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, SmartCardBus, and combinations thereof are registered trademarks of O2Micro. All other trademarks are the property of their respective owners.
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CONTACT: O2Micro International Limited Gary E. Abbott, Director of Investor Relations 408.987.5920, x8888 firstname.lastname@example.org