EX-99 3 dex99.htm PRESS RELEASE Press Release
 
EXHIBIT 99
 
O2Micro® Reports Record Third Quarter Sales
 
Santa Clara, CA and George Town, Grand Cayman, October 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 third quarter ended September 30, 2002.
 
Net sales for the third quarter were $18.0 million, a record high quarter for O2Micro. Third quarter revenue of $18.0 million was an increase of 2% over the preceding quarter, and 52% over the comparable quarter of the prior year. Earnings per share for the third quarter, fully diluted, were 7 cents per share, compared to 8 cents per share in the preceding quarter, and 4 cents in the comparable quarter of the prior year.
 
Net income for the third quarter of $2,545,000 was a decrease of 15% from the preceding quarter, and 93% greater than the net income for the comparable quarter of the prior year. Third quarter R&D expenditures were $4,750,000, an increase of 3% over the preceding quarter, and 26% over the comparable quarter of the prior year.
 
“In Q3 we continued to grow revenue and market share in key product areas,” said Sterling Du, Chairman and CEO of O2Micro. “We will also focus on IP protection, an area that is key to our future growth.”
 
Conference Call: O2Micro will hold its third quarter conference call today at 2:00 p.m. PST, 5:00 p.m. EST. 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 November 7th by dialing (800) 428-6051 or (973) 709-2089 (for International participants), passcode #262984. 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 831 patent claims granted, and over 3100 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

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process, and errors in the products. You are also referred to the documents filed by O2Micro 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 September 30,
     
Nine Months Ended September 30,
  
    
2002
     
2001
     
2002
     
2001
  
NET SALES
   
$
18,024
 
   
$
11,855
 
   
$
51,794
 
   
$
30,425
 
COST OF SALES
   
 
7,269
 
   
 
4,306
 
   
 
20,407
 
   
 
10,924
 
    
  
  
  
GROSS PROFIT
   
 
10,755
 
   
 
7,549
 
   
 
31,387
 
   
 
19,501
 
    
  
  
  
OPERATING EXPENSES
                                    
Research and development
   
 
4,750
 
   
 
3,771
 
   
 
13,948
 
   
 
9,890
 
Selling, general and administrative
   
 
3,284
 
   
 
2,510
 
   
 
8,796
 
   
 
7,305
 
Stock-based compensation
   
 
9
 
   
 
47
 
   
 
42
 
   
 
145
 
    
  
  
  
Total Operating Expenses
   
 
8,043
 
   
 
6,328
 
   
 
22,786
 
   
 
17,340
 
    
  
  
  
INCOME FROM OPERATIONS
   
 
2,712
 
   
 
1,221
 
   
 
8,601
 
   
 
2,161
 
    
  
  
  
NONOPERATING INCOME (EXPENSES)
                                    
Interest income on bank deposits
   
 
144
 
   
 
282
 
   
 
584
 
   
 
1,168
 
Interest income on short-term investments
   
 
230
 
   
 
123
 
   
 
905
 
   
 
158
 
Impairment loss on investment in shares of stocks
   
 
(254
)
   
 
—  
 
   
 
(483
)
   
 
—  
 
    
  
  
  
Interest expenses
   
 
(1
)
   
 
(1
)
   
 
(3
)
   
 
(9
)
Other—net
   
 
69
 
   
 
(50
)
   
 
285
 
   
 
54
 
    
  
  
  
Total Nonoperating Income—Net
   
 
188
 
   
 
354
 
   
 
1,288
 
   
 
1,371
 
    
  
  
  
INCOME BEFORE INCOME TAX
   
 
2,900
 
   
 
1,575
 
   
 
9,889
 
   
 
3,532
 
INCOME TAX EXPENSES
   
 
355
 
   
 
257
 
   
 
1,307
 
   
 
609
 
    
  
  
  
NET INCOME
   
 
2,545
 
   
 
1,318
 
   
 
8,582
 
   
 
2,923
 
OTHER COMPREHENSIVE GAIN (LOSS)
                                    
Translation adjustments on subsidiaries
   
 
(32
)
   
 
(71
)
   
 
71
 
   
 
(235
)

19

 
Unrealized gain (loss) on available-for-sale securities
   
 
(3
)
   
 
69
 
   
 
(68
)
   
 
69
 
    
  
  
  
Total Other Comprehensive Gain (Loss)
   
 
(35
)
   
 
(2
)
   
 
3
 
   
 
(166
)
    
  
  
  
COMPREHENSIVE INCOME
   
$
2,510
 
   
$
1,316
 
   
$
8,585
 
   
$
2,757
 
    
  
  
  
EARNINGS PER SHARE:
                                    
Basic
   
$
0.07
 
   
$
0.04
 
   
$
0.22
 
   
$
0.09
 
    
  
  
  
Diluted
   
$
0.07
 
   
$
0.04
 
   
$
0.21
 
   
$
0.08
 
    
  
  
  
SHARES USED IN EARNINGS PER SHARE CALCULATION:
                                    
Basic (in thousands)
   
 
38,361
 
   
 
33,351
 
   
 
38,362
 
   
 
33,175
 
    
  
  
  
Diluted (in thousands)
   
 
39,073
 
   
 
34,944
 
   
 
40,232
 
   
 
34,618
 
    
  
  
  
 
O2Micro International Limited and Subsidiaries
 
Consolidated Balance Sheets
 
(In Thousand U.S. Dollars, Except Share Amounts)
 
    
September 30,
2002
   
December 31,
2001
    
(Unaudited)
     
ASSETS
              
CURRENT ASSETS
              
Cash and cash equivalents
   
$
86,158
   
$
108,936
Restricted cash
   
 
1,815
   
 
1,159
Short-term investments
   
 
19,472
   
 
10,014
Accounts receivable—net
   
 
10,370
   
 
3,700
Inventories
   
 
8,304
   
 
5,361
Prepaid expenses and other current assets
   
 
2,170
   
 
1,808
    
  
Total Current Assets
   
 
128,289
   
 
130,978
    
  
INVESTMENT IN SHARES OF STOCKS
   
 
5,485
   
 
500
    
  
FIXED ASSETS—NET
   
 
4,789
   
 
3,213
    
  
OTHER ASSETS
              
Convertible loans to 360° Web Ltd.
   
 
1,750
   
 
750
    
  
Deferred income tax—noncurrent
   
 
55
   
 
219
    
  
Other assets
   
 
1,083
   
 
759
    
  
TOTAL ASSETS
   
$
141,451
   
$
136,419
    
  

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LIABILITIES AND SHAREHOLDERS’ EQUITY
                  
CURRENT LIABILITIES
                  
Notes and accounts payable
   
$
3,916
 
   
$
3,570
 
Income tax payable
   
 
1,609
 
   
 
1,220
 
Current portion of obligations under capital lease
   
 
10
 
   
 
9
 
Accrued expenses and other current liabilities
   
 
3,253
 
   
 
3,189
 
    
  
Total Current Liabilities
   
 
8,788
 
   
 
7,988
 
    
  
OBLIGATIONS UNDER CAPITAL LEASE—NET OF CURRENT PORTION
   
 
—  
 
   
 
7
 
    
  
Total Liabilities
   
 
8,788
 
   
 
7,995
 
    
  
CONTINGENCIES AND COMMITMENT
   
 
—  
 
   
 
—  
 
SHAREHOLDERS’ EQUITY
                  
Ordinary shares at $0.001 par value per share Authorized—95,000,000 shares. Issued—38,798,269 and 38,134,511 shares as of September 30, 2002 and December 31, 2001, respectively.
   
 
39
 
   
 
38
 
Treasury Stock—710,700 shares as of September 30, 2002
   
 
(6,763
)
   
 
—  
 
Additional paid-in capital
   
 
132,621
 
   
 
130,197
 
Warrants
   
 
—  
 
   
 
51
 
Deferred compensation
   
 
(1
)
   
 
(44
)
Accumulated other comprehensive income
   
 
(694
)
   
 
(697
)
Accumulated earnings (deficit)
   
 
7,461
 
   
 
(1,121
)
    
  
Total Shareholders’ Equity
   
 
132,663
 
   
 
128,424
 
    
  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   
$
141,451
 
   
$
136,419
 
    
  

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