MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today announced financial results for the fourth quarter ended December 31, 2011.
- Revenues rose to $21.5 million from $11.4 million in the 2010 quarter. Total shipments of our sensor products rose to 35.0 million units from 11.2 million units in prior-year period.
- Gross margin was 35.9% compared to 41.1% in the 2010 quarter.
- Operating expenses, including a $4.5 million non-cash goodwill impairment charge related to the system solution business acquired from Crossbow Technology, totaled $11.6 million compared to $6.3 million in the 2010 quarter.
- GAAP net loss was $3.3 million, or $0.14 per diluted share, compared to net loss of $1.1 million, or $0.05 per diluted share, in the 2010 quarter. Before giving effect to the goodwill impairment charge, MEMSIC realized net income of $1.2 million, or $0.05 per share for the fourth quarter of 2011.
- EBITDA was ($2.3) million, compared to ($0.1) million in the 2010 quarter. Before giving effect to the goodwill impairment charge, EBITDA for the 2011 fourth quarter was $2.2 million.
Dr. Zhao added, “Our fourth-quarter 2011 results include a $4.5 million non-cash charge related to the impairment of a portion of the goodwill associated with our Crossbow Technology acquisition in January 2010. The impairment reflects the fact that sales forecasted for the system solution products, particularly the avionics products, are lower than projected at the time of acquisition. We believe this impairment does not negate the tremendous value of the know-how and IPs in sensor integration technology we acquired from Crossbow. Our original vision and strategy of realizing more higher-margin and stable business by combining MEMSIC’s strong sensor component technologies with the system integration technologies we acquired from Crossbow remain unchanged.”Recent Developments
- Electronic Products magazine honored MEMSIC’s MXC6226XC two-axis digital accelerometer with a Product of the Year award in January 2012. The MXC6226XC – the world’s smallest and the first wafer-level packaged CMOS monolithic accelerometer – was selected for its innovative design, significant advancement in technology, and achievement in price and performance.
- In November 2011, a subsidiary of MEMSIC entered into a joint venture with Wuxi New District Science and Technology Financial Investment Group Co. Ltd., a state-owned Chinese venture capital fund, to focus on the sensor and sensing network solution market by leveraging MEMSIC’s proven mesh wireless sensor network technology.
- Revenue is expected to be between $18 million and $19 million for the first quarter of 2012, an increase of approximately 39% - 46% from the prior-year period.
- GAAP net loss is expected to be in the range of $0.02 to $0.04 per share for the first quarter of 2012.
- Average diluted share count for the 2012 first quarter is estimated to be approximately 24 million.
|What:||MEMSIC 4Q 2011 financial results conference call and webcast|
|When:||Wednesday, February 29, 2012|
|Time:||5:00 p.m. EST|
|Live Call:||(877) 291-1367, domestic|
|(914) 495-8534, international|
|Replay:||(855) 859-2056, pass code 46805814, domestic|
|(404) 537-3406, pass code 46805814, 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’s 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|
|December 31,||December 31,|
|Cash and cash equivalents||$||51,914,128||$||55,694,205|
|Accounts receivable, net of allowance for doubtful accounts of$6,441 as of December 31, 2011 and December 31, 2010||6,068,904||3,664,444|
|Total current assets||82,098,889||73,748,154|
|Property and equipment, net||30,998,489||22,015,502|
|Intangible assets, net||11,091,532||11,894,328|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Advance research funding||3,791,189||2,928,933|
|Current portion of long-term debt||500,000||-|
|Total current liabilities||15,361,760||10,462,192|
|Note payable to bank, net of current portion||17,430,000||17,930,000|
|Total other liabilities||25,715,468||18,020,036|
|Common stock, $0.00001 par value; authorized, 45,000,000 shares;23,983,813 and 23,810,613 shares issued and outstanding at|
|December 31, 2011 and December 31, 2010, respectively||240||238|
|Additional paid-in capital||101,266,272||99,615,378|
|Accumulated other comprehensive income||4,363,930||3,029,372|
|MEMSIC, Inc. stockholders' equity||85,722,307||88,821,423|
|Non-controlling interest related to joint ventures||732,984||361,445|
|Total stockholders' equity||86,455,291||89,182,868|
|Total liabilities and stockholders’ equity||$||127,532,519||$||117,665,096|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended December 31,||Year Ended December 31,|
|Cost of goods sold||13,770,585||6,741,931||44,313,782||23,326,823|
|Research and development||1,943,356||2,311,587||8,553,569||8,697,981|
|Sales and marketing||2,016,409||1,535,130||6,892,303||5,092,353|
|General and administrative||2,781,135||2,015,663||10,354,798||8,546,722|
|Goodwill impairment charge||4,492,000||-||4,492,000||-|
|Total operating expenses||11,648,590||6,270,489||31,920,361||23,886,433|
|Interest and dividend income||102,572||122,365||437,655||442,167|
|Foreign exchange gain||305,708||322,480||1,153,822||682,290|
|Total other income||566,761||507,284||2,155,965||1,257,449|
|Earnings (loss) before income taxes||(3,384,136||)||(1,065,897||)||(5,925,046||)||(7,304,230||)|
|Provision for (benefit from) income taxes||(95,256||)||73,474||77,397||(5,628||)|
|Net income (loss)||(3,288,880||)||(1,139,371||)||(6,002,443||)||(7,298,602||)|
|Less: net income attributable tononcontrolling interest||(9,558||)||(1,982||)||82,127||64,111|
|Net income (loss) attributable toMEMSIC, Inc.||$||(3,279,322||)||$||(1,137,389||)||$||(6,084,570||)||$||(7,362,713||)|
|Net income (loss) per common shareto MEMSIC, Inc.:|
|Weighted average shares outstandingused in calculating net income (loss)|
|per common share:|
|Reconciliation of Net Loss to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA)|
|Three months ended December 31,||Year ended December 31,|
|Interest (income) expense, net||(102,572||)||(122,365||)||(437,655||)||(442,167||)|
|Income tax expense (benefit)||(95,256||)||73,474||77,397||(5,628||)|
|Depreciation and amortization||1,208,787||1,039,749||4,742,190||3,862,416|