EX-99 3 dex99.htm SECOND QUARTER SALES AND EARNINGS Prepared by R.R. Donnelley Financial -- Second Quarter Sales and Earnings
EXHIBIT 99
 
O2Micro Reports Record Second Quarter Sales and Earnings
 
Santa Clara, CA and George Town, Grand Cayman, July 31, 2002. O2Micro International Limited (Nasdaq: OIIM), a leading supplier of innovative power management and security ICs to mobile computer and communications manufacturers, reported its financial results today for the second quarter ended June 30, 2002.
 
Net sales for the second quarter were $17.7 million, a record high quarter for O2Micro. Second quarter revenue of $17.7 million was an increase of 10% over the preceding quarter, and 81% over the comparable quarter of the prior year. Earnings per share for the second quarter, fully diluted, were 8 cents per share, compared to 8 cents per share in the preceding quarter, and 3 cents in the comparable quarter of the prior year.
 
Net income for the second quarter of $3,008,000 was a decrease of 1% from the preceding quarter, and 214% greater than the net income for the comparable quarter of the prior year. Second quarter R&D expenditures were $4,626,000, an increase of 1% over the preceding quarter, and 42% over the comparable quarter of the prior year.
 
“In Q2 we continued to grow revenue and market share in key product areas,” said Sterling Du, Chairman and CEO of O2Micro.
 
Conference Call: O2Micro will hold its second quarter conference call today at 2:00 p.m. PDT, 5:00 p.m. EDT. You may participate by dialing (800) 997-8642 or (973) 694-6836 (for International participants). A replay of the call will be available by phone until August 7th by dialing (800) 428-6051 or (973) 709-2089 (for International participants), passcode #249091. 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 AudioDJ®, SmartCardBus® for secure on line e-commerce, Intelligent Inverter® and Battery Management IC’s.
 
O2Micro International maintains an extensive portfolio of intellectual property with 639 patent claims granted, and over 2500 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 development process, and errors in the products. You are also referred to the documents filed by O2Micro

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with the SEC from time to time, including but not limited to the Form F-1 in connection with the company’s initial public offering in August 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.
 
Contact Information:
Gil Goodrich
Director of Investor Relations, O2Micro
Phone: 408.987.5920 x8013
Email: gil.goodrich@o2micro.com

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O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
(In Thousand U.S. Dollars, Except Per Share Amounts)
 
    
Three Months Ended
June 30
     
Six Months Ended
June 30
  
    
2002
     
2001
     
2002
     
2001
  
NET SALES
   
$
17,667
 
   
$
9,781
 
   
$
33,770
 
   
$
18,571
 
COST OF SALES
   
 
7,393
 
   
 
3,346
 
   
 
13,138
 
   
 
6,619
 
    
  
  
  
GROSS PROFIT
   
 
10,274
 
   
 
6,435
 
   
 
20,632
 
   
 
11,952
 
    
  
  
  
OPERATING EXPENSES
                                    
Research and development
   
 
4,626
 
   
 
3,252
 
   
 
9,198
 
   
 
6,120
 
Selling, general and administrative
   
 
2,848
 
   
 
2,357
 
   
 
5,512
 
   
 
4,794
 
Stock-based compensation
   
 
13
 
   
 
45
 
   
 
33
 
   
 
98
 
    
  
  
  
Total Operating Expenses
   
 
7,487
 
   
 
5,654
 
   
 
14,743
 
   
 
11,012
 
    
  
  
  
INCOME FROM OPERATIONS
   
 
2,787
 
   
 
781
 
   
 
5,889
 
   
 
940
 
    
  
  
  
NON-OPERATING INCOME (EXPENSES)
                                    
Interest income on bank deposits
   
 
122
 
   
 
366
 
   
 
440
 
   
 
886
 
Interest income on short-term investments
   
 
339
 
   
 
35
 
   
 
675
 
   
 
35
 
Impairment loss on investment in shares of stocks
   
 
(129
)
   
 
—  
 
   
 
(229
)
   
 
—  
 
Interest expenses
   
 
(1
)
   
 
(5
)
   
 
(2
)
   
 
(8
)
Other—net
   
 
355
 
   
 
107
 
   
 
216
 
   
 
104
 
    
  
  
  
Total Nonoperating Income—Net
   
 
686
 
   
 
503
 
   
 
1,100
 
   
 
1,017
 
    
  
  
  
INCOME BEFORE INCOME TAX
   
 
3,473
 
   
 
1,284
 
   
 
6,989
 
   
 
1,957
 
INCOME TAX EXPENSES
   
 
465
 
   
 
325
 
   
 
952
 
   
 
352
 
    
  
  
  
NET INCOME
   
 
3,008
 
   
 
959
 
   
 
6,037
 
   
 
1,605
 
OTHER COMPREHENSIVE LOSS
                                    
Translation adjustments on subsidiaries
   
 
121
 
   
 
(154
)
   
 
103
 
   
 
(164
)
Unrealized loss on available-for-sale securities
   
 
112
 
   
 
—  
 
   
 
(65
)
   
 
—  
 
    
  
  
  
Total Other Comprehensive Loss
   
 
233
 
   
 
(154
)
   
 
38
 
   
 
(164
)
    
  
  
  
COMPREHENSIVE INCOME
   
$
3,241
 
   
$
805
 
   
$
6,075
 
   
$
1,441
 
    
  
  
  
EARNINGS PER SHARE:
                                    
Basic
   
$
0.08
 
   
$
0.03
 
   
$
0.16
 
   
$
0.05
 
    
  
  
  
Diluted
   
$
0.08
 
   
$
0.03
 
   
$
0.15
 
   
$
0.05
 
    
  
  
  
SHARES USED IN EARNINGS PER SHARE
CALCULATION:
                                    
Basic (in thousands)
   
 
38,435
 
   
 
33,268
 
   
 
38,362
 
   
 
33,087
 
    
  
  
  
Diluted (in thousands)
   
 
39,805
 
   
 
34,489
 
   
 
40,132
 
   
 
34,432
 
    
  
  
  

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O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES
 
CONSOLIDATED BALANCE SHEETS
(In Thousand U.S. Dollars, Except Share Amounts)
 
    
June 30, 2002
     
December 31, 2001
  
    
(Unaudited)
         
A S S E T S
                  
CURRENT ASSETS
                  
Cash
   
$
58,229
 
   
$
108,936
 
Restricted cash
   
 
1,607
 
   
 
1,159
 
Short-term investments
   
 
62,817
 
   
 
10,014
 
Accounts receivable—net
   
 
7,101
 
   
 
3,700
 
Inventories
   
 
7,920
 
   
 
5,361
 
Prepaid expenses and other current assets
   
 
1,913
 
   
 
1,808
 
    
  
Total Current Assets
   
 
139,587
 
   
 
130,978
 
    
  
INVESTMENT IN SHARES OF STOCKS
   
 
271
 
   
 
500
 
    
  
FIXED ASSETS—NET
   
 
4,181
 
   
 
3,213
 
    
  
OTHER ASSETS
                  
Convertible loans to 360°Web Ltd.
   
 
1,750
 
   
 
750
 
    
  
Deferred income tax—noncurrent
   
 
109
 
   
 
219
 
    
  
Other Assets
   
 
1,068
 
   
 
759
 
    
  
TOTAL ASSETS
   
$
146,966
 
   
$
136,419
 
    
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                  
CURRENT LIABILITIES
                  
Notes and accounts payable
   
$
6,687
 
   
$
3,570
 
Income tax payable
   
 
1,475
 
   
 
1,220
 
Current portion of obligations under capital lease
   
 
9
 
   
 
9
 
Accrued expenses and other current liabilities
   
 
3,939
 
   
 
3,189
 
    
  
Total Current Liabilities
   
 
12,110
 
   
 
7,988
 
    
  
OBLIGATIONS UNDER CAPITAL LEASE—NET OF CURRENT PORTION
   
 
3
 
   
 
7
 
    
  
Total Liabilities
   
 
12,113
 
   
 
7,995
 
    
  
SHAREHOLDERS’ EQUITY
                  
Ordinary shares at $0.001 par value per share Authorized—95,000,000 shares. Issued—38,465,098 and 38,134,511 shares as of June 30, 2002 and December 31, 2001, respectively
   
 
38
 
   
 
38
 
Treasury Stock—89,500 shares
   
 
(1,108
)
   
 
—  
 
Additional paid-in capital
   
 
131,625
 
   
 
130,197
 
Warrants
   
 
51
 
   
 
51
 
Deferred compensation
   
 
(10
)
   
 
(44
)
Accumulated other comprehensive income
   
 
(659
)
   
 
(697
)
Accumulated earning (deficit)
   
 
4,916
 
   
 
(1,121
)
    
  
Total Shareholders’ Equity
   
 
134,853
 
   
 
128,424
 
    
  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   
$
146,966
 
   
$
136,419
 
    
  

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