GEORGE TOWN, Grand Cayman, May 01, 2019 (GLOBE NEWSWIRE) --

Operational and Strategic Highlights:

• Q1 2019 revenue was down 9.5 % from the same quarter in the previous year and down 23.0% sequentially and within the range of adjusted guidance provided on March 29, 2019. As announced, this adjustment was primarily the result of an inventory correction in key markets.

• GAAP net loss per fully diluted ADS in the first quarter of 2019 was 15 cents, with non-GAAP net loss of 13 cents per fully diluted ADS.

• Revenue growth in the second quarter of 2019 is expected to range between 0% and 8% compared to Q1 2019.

• Activated an expense reduction plan to reduce our breakeven point.            

O2Micro® International Limited (NASDAQ: OIIM), a global leader in the design, development and marketing of high-performance integrated circuits and solutions, reported its financial results today for the first quarter ending March 31, 2019.

Financial Highlights for the First Quarter ending March 31, 2019: 
O2Micro International Limited (the “Company”) reported Q1 2019 revenue of $12.8 million. Revenue was down 23.0% sequentially, and down 9.5% from the same quarter in the previous year. The gross margin in the first quarter of 2019 was 50.5%, which was up from 50.3% in the prior quarter, and down from 51.2% in the first quarter of 2018. The gross margin remains in our target range and varies primarily with the quarterly revenue and product mix. During the first quarter of 2019, the Company recorded total GAAP operating expenses of $10.1 million, compared to $10.4 million in the fourth quarter of 2018, and $9.8 millionin the year-ago Q1 period. The GAAP operating margins for the first quarter of 2019, the fourth quarter of 2018, and first quarter of 2018 were (28.4%), (12.4%), and (18.1%), respectively.

GAAP net loss was $3.8 million in Q1 2019. This compares to a GAAP net loss of $3.1 million in the fourth quarter of 2018 and a GAAP net income of $7.2 million in Q1 2018. GAAP net loss per fully diluted ADS was $0.15 in Q1 2019. This compares to a GAAP net loss per fully diluted ADS of $0.12 in Q4 2018 and a GAAP net income per fully diluted ADS of $0.27 in Q1 2018.

Supplementary Data: 
The Company ended the first quarter of 2019 with $35.2 million in cash and short-term investments or $1.33 per outstanding ADS. The accounts receivable balance was $8.6 million and represented 70 days sales outstanding at the end of Q1 2019. Inventory was $10.6 million or 149 days and turned over 2.4 times during Q1 2019. As of March 31, 2019, the Company had $50.7 million in working capital and the book value was $75.5 million, or $2.86 per outstanding ADS. As of March 31, 2019, O2Micro International Limited had a total of 402 employees worldwide, including 257 engineers.

Management Commentary: 
"Our primary growth drivers continue to show promise and projected growth into 2019. Our TV products have had increased design wins and our battery products are showing increased adoption with new and existing customers including automotive, power tools, uninterrupted power supplies, and household appliances. Our smartphone products are showing opportunity for growth as well, although still breaking into the market," said Sterling Du, O2Micro’s Chairman and CEO. “We believe our solutions and design wins for these product segments will provide for ongoing growth in a dynamic consumer market and lead O2Microback to long term profitability.”

Conference Call:
O2Micro will hold its first quarter conference call today, May 1, 2019, at 6:00AM Pacific, 9:00AM Eastern. You may participate using the following dial-in information.

Conference Code: 2520056
Participants, Int'l Toll:  +1 334-323-0522 
Participants, US/CAN:  800-667-5617

The Call-in Audio Replay will be available from May 1, 201912:00 Eastern Time (US & Canada) (UTC-05:00) through May 8, 201912:00 Eastern Time (US & Canada) (UTC 5:00)
https://event.mymeetingroom.com/Public/ReplayNumberViewPage/2520056?instance=1&language=english&webreg=True 

About O2Micro:
Founded in April 1995, O2Micro develops and markets innovative power management components for the Computer, Consumer, Industrial, Automotive and Communications markets. Products include LED General Lighting, Backlighting, Battery Management, and Power Management. 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, and combinations thereof are registered trademarks of O2Micro. All other trademarks or registered trademarks are the property of their respective owners.

Statements made in this release that are not historical, including statements regarding O2Micro or its 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 and other Federal Securities Laws. Such statements involve risks, speculation and uncertainties that may cause actual results to differ materially from those set forth in these statements or from management's current views and expectations. Risks and uncertainties in this release may include, without limitation, any one or combination of the following: the effect of competitive and economic factors; real property value fluctuations and market demand; legal changes in any relevant rules and regulations pertaining to O2Micro's business; changes in technology and industry standards, and O2Micro's reaction to those factors; consumer and business buying decisions with respect to our customers' products incorporating O2Micro's products; continued competitive pressures in the marketplace; the ability of O2Microto deliver to the marketplace, and stimulate customer demand therein, for new products and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on O2Micro's gross margins; the inventory risk associated with O2Micro's need to order, or commit to order, product components and product capacity in advance of forecast customer orders; the continued availability of acceptable terms of certain components and services essential to O2Micro's business which are currently obtained by the Company from sole or limited sources; the effect that O2Micro's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity, availability or cost of products manufactured or services rendered; risks associated with O2Micro's international operations; the potential impact of a finding that O2Micro has infringed on the intellectual property rights of others, or that any third party may have infringed on O2Micro's intellectual property that may negatively affect O2Micro's business; O2Micro's legal classifications with governmental and regulatory agencies; O2Micro's dependency on the performance of distributors, carriers, independent sales representatives, and other resellers of O2Micro's products; the effect that product and service quality problems could have on O2Micro's sales ability and operating profits; the ability of O2Micro to deliver its products in a timely fashion to its customers, and the possible negative ramifications if such is not possible; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. Actual results may differ materially due to numerous risk factors. Such risk factors are more fully enumerated in O2Micro's 20-F Annual Filings, Annual Report(s), 6-K's, the Form F-1 filed in connection with the Company's initial public offering in August 2000, information posted on our website atwww.o2micro.com, and other documents filed with the SEC, NASDAQ or any other public agency from time to time. The statements herein are based on dated information on the dates mentioned herein, which is subject to change. O2Micro assumes no obligation to update or revise the information provided on today, or any other forward-looking information, whether as a result of new information, future events or any other information that may arise. This information only speaks to the respective dates mentioned in said information.

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
	March 31,
		2019				2018
NET SALES	$	12,763			$	14,108
COST OF SALES		6,316				6,886
GROSS PROFIT		6,447				7,222
OPERATING EXPENSES
Research and development (1)		5,110				4,806
Selling, general and administrative (1)		4,956				4,964
Total Operating Expenses		10,066				9,770
LOSS FROM OPERATIONS		(3,619	)			(2,548	)
NON-OPERATING INCOME
Interest income		57				97
Net gain recognized on long-term investments		15				9,856
Foreign exchange loss – net		(141	)			(157	)
Other – net		141				185
Total Non-operating Income		72				9,981
INCOME (LOSS) BEFORE INCOME TAX		(3,547	)			7,433
INCOME TAX EXPENSE		299				265
NET INCOME (LOSS)		(3,846	)			7,168
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustments		169				675
Unrealized pension gain		1				2
Total Other Comprehensive Income		170				677
COMPREHENSIVE INCOME (LOSS)	$	(3,676	)		$	7,845
EARNINGS (LOSS) PER ADS
Basic	$	(0.15	)		$	0.28
Diluted	$	(0.15	)		$	0.27
ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION:
Basic (in thousands)		26,294				25,977
Diluted (in thousands)		26,294				26,477
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:
Research and development	$	63			$	62
Selling, general and administrative	$	262			$	302

O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousand U.S. Dollars, Except Share Amounts)

	March 31,				December 31,
	2019				2018
ASSETS	(Unaudited)				(Audited)
CURRENT ASSETS
Cash and cash equivalents	$	31,058			$	32,414
Restricted cash		34				34
Short-term investments		4,189				6,172
Accounts receivable – net		8,592				11,388
Inventories		10,608				10,288
Prepaid expenses and other current assets		2,347				2,276
Total Current Assets		56,828				62,572
LONG-TERM INVESTMENTS		8,567				10,445
PROPERTY AND EQUIPMENT – NET		15,283				13,714
OTHER ASSETS		2,444				2,578
TOTAL ASSETS	$	83,122			$	89,309
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Notes and accounts payable	$	1,746			$	4,582
Income tax payable		444				413
Lease liabilities		727				-
Accrued expenses and other current liabilities		3,188				4,181
Total Current Liabilities		6,105				9,176
OTHER LONG-TERM LIABILITIES
Accrued pension liabilities		315				321
Deferred income tax liabilities		735				681
Lease liabilities		344
Other liabilities		87				85
Total Other Long-Term Liabilities		1,481				1,087
Total Liabilities		7,586				10,263
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Preference shares at $0.00002 par value per share
Authorized – 250,000,000 shares		-				-
Ordinary shares at $0.00002 par value per share
Authorized – 4,750,000,000 shares
Issued – 1,669,036,600 shares as of March 31, 2019 and December 31, 2018  Outstanding –1,321,078,750 and 1,298,808,750 shares as of March 31, 2019 and December 31, 2018, respectively		33				33
Additional paid-in capital		142,424				143,115
Accumulated deficits		(50,440	)			(45,912	)
Accumulated other comprehensive income		4,844				4,674
Treasury stock – 347,957,850 and 370,227,850 shares as of March 31, 2019 and    December 31, 2018, respectively		(21,325	)			(22,864	)
Total Shareholders’ Equity		75,536				79,046
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	83,122			$	89,309

O2MicroDaniel Meyberg
Investor Relations ir@o2micro.com

Source: O2Micro, Inc.