O2Micro Reports First Quarter 2018 Financial Results

O2Micro International Limited (NASDAQ:OIIM), a global leader in the design, development and marketing of performance integrated circuits and solutions reported its financial results today for the first quarter ending March 31, 2018.

The company said that their Q1 2018 results were within the range of guidance provided in January 2018. The revenue growth in the second quarter according to the company is expected to range between two to ten percent compared to Q1 2018.

As quoted in the press release:

O2Micro International Limited (“Company”) reported Q1 2018 revenue of $14.1 million. Revenue was down 7.3% sequentially, and down 5.7% from the same quarter in the previous year. The gross margin in the first quarter of 2018 was 51.2 %, which was up from 50.5% in the prior quarter, and down from 52.7 % in the first quarter of 2017. The gross margin remains in our target range and varies primarily with the quarterly revenue and product mix. During the first quarter of 2018, the Company recorded total GAAP operating expenses of $9.8 million, compared to $9.4 million in the fourth quarter of 2017, and $9.1 million in the year-ago Q1 period. The GAAP operating margins for the first quarter of 2018, the fourth quarter of 2017, and first quarter of 2017 were (18.1 %), (11.5 %), and (8.0 %), respectively.

GAAP net income was $ 7.2 million in Q1 2018. This compares to a GAAP net loss of $1.9 million in the fourth quarter of 2017 and a GAAP net loss of $1.5 million in Q1 2017. GAAP net income per fully diluted ADS was $0.27 in Q1 2018. This compares to a GAAP net loss per fully diluted ADS of $0.07 in Q4 2017 and a GAAP net loss per fully diluted ADS of $0.06 in Q1 2017.

“Our second quarter of 2018 revenue guidance reflects continuing design activities in the growth drivers of the consumer and industrial markets. We are pleased to see our customer acceptance including high end backlighting for the TV/monitor, power tools, household appliances, and automotive, despite the dynamic consumer market,” said Sterling Du, O2Micro’s Chairman and CEO. “We believe our solutions for these product segments will accelerate growth in upcoming quarters through the year and lead O2Micro back to long term profitability.”

Supplementary Data: 
The Company ended the first quarter of 2018 with $45.1 million in unrestricted cash and short-term investments or $1.73 per outstanding ADS. The accounts receivable balance was $8.0 million and represented 55 days sales outstanding at the end of Q1 2018. Inventory was $9.7 million or 124 days and turned over 2.9 times during Q1 2018. As of March 31, 2018, the Company had $57.2 million in working capital and the book value was $84.6 million, or $3.25 per outstanding ADS. As of March 31, 2018, O2Micro International Limited had a total of 375 employees worldwide, including 232 engineers.

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