MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today announced financial results for the second quarter ended June 30, 2013.
- Net sales totaled $13.2 million compared to $14.4 million in the 2012 quarter.
- Gross margin was 37.6% compared to 40.1% in the 2012 quarter.
- Operating expenses, including $1.7 million legal and other expenses related to MEMSIC’s pending acquisition, totaled $7.5 million compared to $6.2 million in the 2012 quarter.
- GAAP net loss was $2.3 million, or $0.09 per diluted share, compared to a net loss of $0.5 million, or $0.02 per diluted share, in the 2012 quarter.
- EBITDA was ($1.2) million compared to $0.7 million in the 2012 quarter.
MEMSIC Chairman, President and CEO Dr. Yang Zhao commented, “In this year’s second quarter, growing revenue from shipments to the China mobile market helped alleviate the impact of reduced sales to a large mobile customer. We are pleased with the progress we are making in penetrating the China mobile market. The number of units shipped that related to mobile applications increased more than 80% during the period.
“In June 2013 we unveiled our MMC246xMT Two-Axis Magnetic Sensor, which offers top performance at the lowest power consumption for a two-axis magnetic sensor. The MMC246xMT is well suited for consumer, industrial and automotive applications.”
On April 23, 2013, MEMSIC announced it had agreed to be acquired by IDG-Accel China Capital II, L.P. and its affiliates. The company continues to expect that transaction to close in the third quarter of 2013.
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.