MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today announced financial results for the third quarter ended September 30, 2010.
- Revenues totaled $10.8 million compared to $7.1 million in the third quarter of 2009.
- Gross margin was 37.8% compared to 41.3% in the 2009 quarter. Gross margin in the 2010 quarter was negatively impacted by a $0.4 million sales credit granted to a customer for estimated engineering and screening costs incurred during 2010. The credit reduced gross margin by 2.4 basis points.
- Operating expenses rose to $6.4 million from $3.1 million in the 2009 quarter, including an increase in R&D expense to $2.4 million from $1.2 million.
- Net loss in the 2010 third quarter was ($1.9) million, or ($0.08) per diluted share, compared to net income of $52,000, or $0.00 per diluted share, in the prior-year period.
- EBITDA in the 2010 third quarter was ($1.0) million compared to $0.4 million in the 2009 quarter.
“The transition to China of manufacturing operations for the sensor system product lines we acquired is progressing as planned. Manufacturing for all of the wireless sensing products has been transferred, and we will finish transferring our inertial navigation system and solution products by Q1 next year except for our FAA-certified product line, which takes longer due to the nature of FAA regulations. We continue to expect cost savings through the transfer process and increased product performance and functionality through redesigning most of the product lines.”The company’s third-quarter 2010 results include revenue from the products MEMSIC acquired from Crossbow Technology, Inc. in January 2010 and costs related to the addition of Crossbow engineering and sales staff. The 2010 and the 2009 results include $0.4 million and $0.3 million, respectively, in stock-based compensation. Outlook For the fourth quarter of 2010, MEMSIC anticipates revenue in the range of $10.0 to $11.0 million. Net loss, including stock-based compensation of $0.4 million, is expected to be in the range of ($0.08) to ($0.11) per share. Average diluted share count for the fourth quarter is estimated to be 24 million. Conference Call Management will hold a conference call and webcast at 10:00 a.m. EST on November 8, 2010 to review and discuss the Company's results.
|What:||MEMSIC 3Q 2010 financial results conference call and webcast|
|When:||Monday, November 8, 2010|
|Time:||10:00 a.m. EST|
|Live Call:||(877) 291-1367, domestic|
|(914) 495-8534, international|
|Replay:||(800) 642-1687 pass code 16895977, domestic|
|(706) 645-9291, pass code 16895977, international|
|Webcast:||http://investor.memsic.com (live and replay)|
Pursuant to the requirements of Regulation G, we have provided a reconciliation of EBITDA to GAAP net income as an exhibit to this release.About MEMSIC, Inc. MEMSIC Inc., headquartered in Andover, Massachusetts, provides advanced semiconductor sensors and multi-sensor system solutions based on micro-electromechanical systems (MEMS) technology and sophisticated integration technologies in both the IC level and module level. MEMSIC's unique and proprietary approach combines leading-edge sensor technologies, such as magnetic sensors and accelerometers, with mixed signal processing circuitry to produce reliable, high quality, cost-effective solutions for the mobile phone, automotive, consumer, industrial, and general aviation markets. The company shares are listed on the NASDAQ Stock Exchange (NASDAQ GM: MEMS). Safe Harbor Statement Statements included in this press release that are not historical in nature are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements for reasons identified under the heading "Risk Factors" in the company's most recent annual report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof, and the company does not undertake any obligation to update any forward-looking statements, whether as a result of future events, new information or otherwise.
|CONSOLIDATED BALANCE SHEETS|
|September 30,||December 31,|
|Cash and cash equivalents||$||56,756,071||$||66,970,736|
|Accounts receivable, net of allowance for doubtful accounts of $6,441|
|as of September 30, 2010 and December 31, 2009, respectively||4,048,875||2,670,144|
|Total current assets||73,514,186||76,497,388|
|Property and equipment, net||21,922,331||14,591,828|
|Intangible assets, net||12,113,093||988,270|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Advance research funding||2,614,515||863,439|
|Total current liabilities||10,067,676||3,641,651|
|Note payable to bank||17,930,000||-|
|Common stock, $0.00001 par value; authorized, 45,000,000 shares; 23,805,363 and 23,793,113shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively|
|Additional paid-in capital||99,233,128||98,112,408|
|Accumulated other comprehensive income||2,615,109||2,218,496|
|MEMSIC, Inc. stockholders' equity||89,162,297||93,870,290|
|Noncontrolling interest related to joint venture in Japan||363,427||-|
|Total liabilities and stockholders’ equity||$||117,523,400||$||97,511,941|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended September 30,||Nine Months Ended September 30,|
|Cost of goods sold||6,751,194||4,147,180||16,584,892||12,505,427|
|Research and development||2,377,649||1,210,197||6,386,394||4,088,923|
|Sales and marketing||1,376,893||502,829||3,557,223||1,622,890|
|General and administrative||2,212,399||1,342,290||6,525,484||4,115,447|
|Total operating expenses||6,373,502||3,093,383||17,615,945||9,937,272|
|Operating income (loss)||(2,279,977||)||(172,980||)||(6,988,499||)||316,994|
|Interest and dividend income||99,026||205,322||319,803||665,171|
|Total other income||424,100||273,973||750,164||772,457|
|Earnings (loss) before income taxes||(1,855,877||)||100,993||(6,238,335||)||1,089,451|
|Provision (benefit) for income taxes||36,392||48,927||(79,102||)||289,021|
|Net income (loss)||(1,892,269||)||52,066||(6,159,233||)||800,430|
|Less: net income attributable to noncontrolling interest||39,004||-||66,093||-|
|Net income (loss) attributable to MEMSIC, Inc.||$||(1,931,273||)||$||52,066||$||(6,225,326||)||$||800,430|
|Net income (loss) per common share:|
|Weighted average shares outstanding used in calculating|
|net income (loss) per common share:|
|Reconciliation of Net Income (Loss) to Earnings Before Interest, Taxes andDepreciation and Amortization (EBITDA (Unaudited)|
|Three months ended September 30,||Nine months ended September 30,|
|Net income (loss)||$||(1,931,273||)||$||52,066||$||(6,225,326||)||$||800,430|
|Interest (income) expense, net||(99,026||)||(205,322||)||(319,802||)||(665,171||)|
|Income tax expense (benefit)||36,392||48,927||(79,102||)||289,021|
|Depreciation and amortization||1,002,616||493,769||2,822,667||1,518,353|