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MEMSIC Announces First-Quarter 2011 Sales Of $13.0 Million

MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today announced financial results for the first quarter ended March 31, 2011.

“MEMSIC’s first-quarter results were driven by strong sales into the mobile phone market, which rose to $4.7 million from the prior-year period as the popularity of smartphones continued to expand worldwide,” said Chairman, President and CEO Dr. Yang Zhao. “In addition, our magnetic sensor has been designed into additional phone models by a major global cell phone manufacturer. We turned in a strong performance in the automotive market, where sales rose 58% to $3.8 million from the first quarter of 2010. Sales in the industrial and consumer markets also grew, helping our first-quarter revenue performance top the guidance we provided in March.”

Financial Highlights

  • Revenues rose to $13.0 million from $7.3 million in the first quarter of 2010.
  • Gross margin was 38.1% compared to 39.1% in the 2010 quarter.
  • Operating expenses, including R&D expense of $2.3 million, totaled $6.4 million compared to $5.4 million in the 2010 quarter.
  • GAAP net loss in the 2011 first quarter was $1.3 million, or $0.06 per diluted share, compared to net loss of $2.3 million, or $0.10 per diluted share, in the prior-year period. This includes $0.4 million in stock-based compensation in both the 2011 and 2010 periods.
  • EBITDA in the 2011 first quarter was ($0.2) million, compared to ($1.7) million in the 2010 period.

Recent Highlights

  • MEMSIC recently introduced a new magnetic sensor that features 2mm x 2mm x 1mm in size and is optimized for smartphone, tablet PC, gaming and other high volume consumer electronic applications. The new product’s smaller size and cost, combined with MEMSIC’s manufacturing capacity in China, are major competitive advantages for the company. Mass production of the new mag sensor is expected in the third quarter of 2011.
  • MEMSIC also introduced LOTUS, its next-generation mote platform, enabling higher performance, low power consumption and competitive pricing. The introduction reflects MEMSIC’s mission of delivering innovative wireless sensor network products and solutions to enable its customers’ growth.

Outlook

  • Revenue is expected to be between $13.0 million and $13.5 million for the second quarter of 2011.
  • GAAP net loss, including stock-based compensation of $0.4 million, is expected to be in the range of $0.05 to $0.06 per share for the second quarter of 2011.
  • Average diluted share count for the 2011 second quarter is estimated to be approximately 24 million.

Conference Call

Management will hold a conference call and webcast at 10:00 a.m. EDT on Tuesday, May 10, 2011 to review and discuss the Company's results.

What:

        MEMSIC 1Q 2011 financial results conference call and webcast

When:

Tuesday, May 10, 2011

Time:

10:00 a.m. EDT

Live Call:

(877) 291-1367, domestic

(914) 495-8534, international

Replay:

(800) 642-1687, pass code 62612724 domestic
(706) 645-9291, pass code 62612724, international

Webcast:

http://investor.memsic.com (live and replay)

 

About Non-GAAP Financial Information

EBITDA is a measure used by management to evaluate the Company’s ongoing operations and as a general indicator of its operating cash flow (in conjunction with a cash flow statement that also includes, among other items, changes in working capital and the effect of non-cash charges). The Company defines EBITDA as net income, plus interest expense, net of interest income, provision for income taxes, and depreciation and amortization. Management believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the comparative evaluation of companies. Because not all companies use identical calculations, the company's presentation of EBITDA and EBITDA per share may not be comparable to similarly titled measures of other companies. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use as it does not reflect certain cash requirements such as interest payments, tax payments and debt service requirements.

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