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[LOGO]MICRO
Breathing Life into Mobility Exhibit 99
O2Micro Reports Record Third Quarter Sales and Earnings
Santa Clara, CA, November 1, 2000. O2Micro International Limited (Nasdaq:
OIIM), a leading supplier of innovative ICs for power management, reported today
----
its financial results for the third quarter, ended September 30, 2000.
Net sales for the third quarter were $11.1 million, an increase of 65% over net
sales of $6.8 million for the third quarter of 1999 and an increase of 17% over
net sales of $9.5 million for the second quarter of 2000. Net sales for the
first nine months of 2000 were $29.0 million, an increase of 80% over net sales
of $16.2 million for the first nine months of 1999.
Net income and net income per share for the third quarter amounted to $2.1
million and $0.06 respectively, compared to $0.8 million and $0.03 in the third
quarter of 1999 and $1.3 million and $0.04 in the second quarter of 2000. Net
income for the first nine months of 2000 was $4.6 million or $0.15 per share,
compared to a net loss and net loss per share of $(0.2) million and $(0.02) in
the first nine months of 1999.
Gross margin for the third quarter was 60.4%, compared to 60.6% in the second
quarter and 63.7% in the third quarter of 1999. Operating profit margin for the
third quarter increased to 16.4% from 13.2% in the second quarter and 10.2% in
the third quarter of 1999.
During the quarter, cash and short-term investments increased by $33 million
primarily due to the net proceeds from the initial public offering.
"Business continues to be strong for our power management products. Over the
past two years, O2Micro has become a leading supplier of analog and mixed-
signal components to the mobile communications and computing markets," said
Sterling Du, Chairman and CEO of O2Micro. "This past quarter we continued to
build our leadership position through growth in revenue from current products,
successful new customer design activity and new product development. In August
2000, we completed a successful initial public offering of our stock on Nasdaq."
About O2Micro
-----------------
Founded in March 1995, O2Micro designs, develops and markets innovative
peripheral components for notebook computers, Internet appliances, LCD monitors
and wireless communications. Products include AudioDJ(TM), CardBus Controller,
SmartCardBus(TM), CCFL Backlight Inverter and Battery Management IC's.
O2Micro designs products compliant with the System Management Bus (SMBus)
and Smart Battery System (SBS) specifications, a subset of the ACPI
specification (ACPI is a requirement for Microsoft's PC98 and 99). O2Micro
maintains an extensive portfolio of intellectual property with 205 patent claims
granted, and over 250 more pending. The company maintains offices worldwide.
Additional company and product information can be found on the company website
at www.o2micro.com.
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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 1955. 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
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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 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:
Jayant Ishwar
VP, Investor Relations, O2Micro
Phone: 408.987.5920 x8013
Email: [email protected]
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O2Micro International Limited
Consolidated Statements of Income
(Thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
2000 1999 2000 1999
---- ---- ---- ----
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Net Sales $ 11,149 $ 6,775 $ 29,021 $ 16,165
Cost of sales 4,410 2,457 11,090 7,250
---------- ---------- ---------- ---------
6,739 4,318 17,931 8,915
Operating expenses
Research and development 2,528 1,524 6,936 3,960
Selling, general and administrative 2,262 1,879 6,465 4,694
Stock-based compensation 119 221 390 599
---------- ---------- ---------- ---------
Total Operating Expenses 4,909 3,624 13,791 9,253
Income (loss) from operations 1,830 694 4,140 (338)
Interest income and other, net 224 58 414 138
---------- ---------- ---------- ---------
Income (loss) before income taxes 2,054 752 4,554 (200)
Income tax expense (benefit) (44) -- (58) 1
---------- ---------- ---------- ---------
Net Income (loss) $ 2,098 $ 752 $ 4,612 $ (201)
========== ========== ========== =========
Earnings (loss) per share
Basic $ 0.08 $ 0.08 $ 0.31 $ (0.02)
========== ========== ========== =========
Diluted $ 0.06 $ 0.03 $ 0.15 $ (0.02)
========== ========== ========== =========
Shares used in earnings (loss) per share
calculation, in thousands:
Basic 24,973 9,865 14,962 9,672
========== ========== ========== =========
Diluted 33,272 29,801 31,490 9,672
========== ========== ========== =========
</TABLE>
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O2Micro International Limited
Consolidated Balance Sheets
(Thousands)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
--------------- --------------
(unaudited)
<S> <C> <C>
Assets
Cash and cash equivalents $ 36,793 $ 5,946
Restricted cash 1,198 317
Accounts receivable 5,371 1,693
Inventories 5,474 3,118
Deferred income tax - current 138 --
Prepaid expenses and other current assets 726 160
--------------- --------------
Total current assets 49,700 11,234
Fixed assets - net 1,808 290
Receivables from 360 Degree Web Ltd. 750 --
Deferred income tax 133 --
Other assets 321 267
--------------- -------------
Total assets $ 52,712 $ 12,791
=============== ==============
Liabilities and Stockholders' Equity
Notes and accounts payable $ 4,074 $ 2,752
Income tax payable 199 12
Current portion of obligations under capital lease 46 5
Accrued expenses and other current liabilities 2,179 1,669
--------------- -------------
Total current liabilities 6,498 4,438
Obligations under capital lease - net of 21 2
current portion
Guarantee deposits 51 51
--------------- --------------
Total liabilities 6,570 4,491
Stockholders' Equity
Ordinary shares, at par 33 10
Preference shares, at par -- 19
Additional paid in capital 55,303 22,375
Warrants 61 61
Deferred compensation (338) (728)
Accumulated other comprehensive income (130) (38)
Accumulated deficit (8,787) (13,399)
--------------- -------------
Total stockholders' equity 46,142 8,300
--------------- -------------
Total liabilities and stockholders' equity $ 52,712 $ 12,791
=============== =============
</TABLE>
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