O2Micro Reports Fourth Quarter Financial Results

GEORGE TOWN, Grand Cayman, Jan. 27, 2011 (GLOBE NEWSWIRE) -- O2Micro ^® International Limited (Nasdaq:OIIM) reported its financial results today for the fourth quarter of fiscal 2010, ending December 31, 2010.

Financial Results for the Fourth Quarter ending 12/31/2010:

Revenue was $30.2 million in the fourth quarter of 2010. This was down 10.6% from the prior quarter and 6.8% from the year-ago period. Gross margin was 60.2% in Q4 2010. This was 171 basis points less than the third quarter and 47 basis points lower than the comparable year-ago quarter. Q4 operating expenses consisted of R&D expense of $8.1 million and SG&A expense of $7.6 million. This resulted in total operating expenses of $15.7 million in the fourth quarter of 2010, compared to $15.5 million in Q3 2010 and $16.9 million in the year-ago quarter. In the fourth quarter of 2010, the company recorded a GAAP operating margin of 8.2%. This operating margin was down from 16.1% in Q3 2010 and down from 8.4% in the year-ago quarter.

Pretax income from continuing operations was $2.9 million in the fourth quarter of 2010 and income taxes were $54,000 during the period. This compares with $5.5 million and $449,000 in pretax income and income taxes in Q3 2010 and $2.9 million and $559,000 in Q4 2009, respectively.

During the fourth quarter of 2010, the company discontinued the operations of its network security business. This resulted in a loss from discontinued operations of $3.5 million after taxes in Q4 2010. Historical revenue and expenses have also been reclassified to adjust for the discontinued operations and yield a comparable loss from discontinued operations of $3.4 million in Q3 2010 and $1.4 million in Q4 2009. After including losses from discontinued operations, the GAAP net loss was $636,000 in the fourth quarter of 2010, compared to GAAP net income of $1.7 million in the third quarter of 2010 and GAAP net income of $962,000 million in the fourth quarter of 2009. The corresponding net loss per ADS was $0.02 in Q4 2010, compared to net income per ADS of $0.05 and $0.03 in Q3 2010 and Q4 2009, respectively. The impact of the discontinued operations reduced GAAP results per ADS by $0.10 in Q4 2010, $0.10 in Q3 2010, and $0.03 in Q4 2009.