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.
- 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.
- 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.
|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)|
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|
|March 31,||December 31,|
|Cash and cash equivalents||$||51,272,253||$||55,694,205|
|Accounts receivable, net of allowance for doubtful accounts of $6,441||5,446,620||3,664,444|
|Total current assets||72,388,836||73,748,154|
|Property and equipment, net||22,050,619||22,015,502|
|Intangible assets, net||11,648,603||11,894,328|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Advance research funding||2,442,263||2,928,933|
|Total current liabilities||9,442,604||10,462,192|
|Note payable to bank||17,930,000||17,930,000|
|Total other liabilities||18,060,604||18,020,036|
|Common stock, $0.00001 par value; authorized, 45,000,000 shares; 23,813,613 and 23,810,613|
|shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively||238||238|
|Additional paid-in capital||100,022,023||99,615,378|
|Accumulated other comprehensive income||3,216,075||3,029,372|
|MEMSIC, Inc. stockholders' equity||88,086,592||88,821,423|
|Noncontrolling interest related to joint venture in Japan||315,502||361,445|
|Total stockholders' equity||88,402,094||89,182,868|
|Total liabilities and stockholders’ equity||$||115,905,302||$||117,665,096|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended March 31,|
|Cost of goods sold||8,013,199||4,426,499|
|Research and development||2,297,836||1,973,657|
|Sales and marketing||1,464,746||1,071,479|
|General and administrative||2,254,260||1,985,047|
|Total operating expenses||6,422,777||5,368,944|
|Interest and dividend income||83,490||116,664|
|Foreign exchange gain||190,676||4,021|
|Total other income||342,742||134,194|
|Earnings (loss) before income taxes||(1,138,314||)||(2,389,256||)|
|Provision for (benefit from) income taxes||117,394||(116,435||)|
|Less: net income attributable to noncontrolling interest||72,471||47,141|
|Net loss attributable to MEMSIC, Inc.||$||(1,328,179||)||$||(2,319,962||)|
|Net loss per common share to MEMSIC, Inc.:|
|Weighted average shares outstanding used in calculating|
|net loss per common share:|
|Reconciliation of Net Loss to Earnings Before Interest, Taxes and Depreciationand Amortization (EBITDA) (Unaudited)|
|Three months ended March 31,|
|Net income (loss)||$||(1,328,179||)||$||(2,319,962||)|
|Interest (income) expense, net||(83,490||)||(116,664||)|
|Income tax expense (benefit)||117,394||(116,435||)|
|Depreciation and amortization||1,069,320||879,231|