MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today announced financial results for the fourth quarter ended December 31, 2012.
- Net sales totaled $14.2 million compared to $21.5 million in the 2011 quarter.
- Gross margin was 36.6% compared to 35.9% in the 2011 quarter.
- Operating expenses totaled $7.0 million compared to $11.6 million in the 2011 quarter.
- GAAP net loss was $1.4 million, or $0.06 per diluted share, compared to $3.3 million, or $0.14 per diluted share, in the 2011 quarter.
- Before giving effect to a goodwill impairment charge of $0.6 million in the 2012 quarter and $4.5 million in the 2011 quarter, MEMSIC realized a net loss of $0.8 million, or $0.03 for the 2012 quarter and net income of $1.2 million, or $0.05 per share, for the 2011 quarter.
- EBITDA was ($0.5) million compared to ($2.3) million in the 2011 quarter. Before giving effect to the goodwill impairment charge in each quarter, EBITDA was $0.2 million and $2.2 million, respectively.
For the year ended December 31, 2012, net sales totaled $63.8 million compared to $68.2 million for 2011. Net loss totaled $1.0 million, or $0.04 per diluted share, compared to a net loss of $6.1 million, or $0.26 per diluted share in the prior year. MEMSIC’s 2012 and 2011 results included non-cash charges related to the impairment of the goodwill associated with the company’s Crossbow Technology acquisition in January 2010. Before giving effect to a goodwill impairment charge of $0.6 million in 2012 and $4.5 million in 2011, MEMSIC’s net loss was $0.3 million, or $0.01 per share, for 2012 compared to net loss of $1.6 million, or $0.07 per share, for 2011. EBITDA for the year ended December 31, 2012 totaled $3.7 million compared to ($1.7) million for 2011. Before giving effect to the impairment charges in 2012 and 2011, EBITDA was $4.4 million and $2.8 million, respectively.Strategic Alternatives Review Process The Special Committee appointed by MEMSIC’s Board of Directors is continuing to evaluate the company’s strategic alternatives in light of the November 20, 2012 proposal from IDG-Accel China Growth Fund II LP. No assurance can be given as to whether this process, which is ongoing, will result in a proposed transaction, whether any transaction that may be proposed as a result of such process would be acceptable to the Company, the Special Committee and the Board, or whether any such proposed transaction will be announced or consummated. Recent Developments
- In January 2013 MEMSIC won Electronic Products magazine’s prestigious “Product of the Year Award” for the second consecutive year. This year’s POY was awarded to MEMSIC’s three-axis magnetic sensor, the MMC3316xMT. Last year’s POY was awarded to MEMSIC’s MXC6226xC, an ultra-small, two-axis accelerometer.
- Revenue is expected to be between $11 million and $12 million for the first quarter of 2013.
- GAAP net loss is expected to be in the range of $0.09 to $0.11 per share for the first quarter of 2013.
- Average diluted share count for the 2013 first quarter is estimated to be approximately 24.5 million.
|What:||MEMSIC 4Q 2012 financial results conference call and webcast|
|When:||Friday, March 8, 2013|
|Time:||9:00 a.m. EST|
|Live Call:||(877) 291-1367, domestic (914) 495-8534, international|
|Replay:||(855) 859-2056, pass code 15153653, domestic (404) 537-3406, pass code 15153653, 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.
|MEMSIC, Inc.CONSOLIDATED BALANCE SHEETS|
|December 31, 2012||December 31, 2011|
|Cash and cash equivalents||$||27,306,202||$||51,914,128|
|Accounts receivable, net of allowance for doubtful accounts of $18,774 and $6,441, respectively, as of December 31, 2012 and December 31, 2011||4,821,867||6,068,904|
|Other current assets||2,285,923||2,050,787|
|Total current assets||81,762,735||82,098,889|
|Property and equipment, net||29,002,825||30,998,489|
|Intangible assets, net||9,918,305||11,091,532|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Advance research funding||2,867,896||3,791,189|
|Current portion of note payable to bank||1,000,000||500,000|
|Total current liabilities||11,581,543||15,361,760|
|Note payable to bank, net of current portion||16,430,000||17,430,000|
|Total other liabilities||24,651,535||25,715,468|
|Common stock, $0.00001 par value; authorized, 45,000,000 shares; 24,219,685 and 23,983,813 shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively||242||240|
|Additional paid-in capital||102,813,203||101,266,272|
|Accumulated other comprehensive income||4,477,071||4,363,930|
|MEMSIC, Inc. stockholders' equity||86,394,442||85,722,307|
|Non-controlling interest related to joint ventures||700,451||732,984|
|Total stockholders' equity||87,094,893||86,455,291|
|Total liabilities and stockholders’ equity||$||123,327,971||$||127,532,519|
|MEMSIC, Inc.CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three months ended December 31,||Twelve months ended December 31,|
|Cost of goods sold||8,998,780||13,770,585||40,107,592||44,313,782|
|Research and development||1,962,267||1,943,356||6,874,962||8,553,569|
|Sales and marketing||1,257,093||2,016,409||5,194,733||6,892,303|
|General and administrative||2,448,701||2,342,825||9,417,623||8,717,322|
|Impairment charge of goodwill||646,602||4,492,000||646,602||4,492,000|
|Total operating expenses||7,023,158||11,648,590||25,166,874||31,920,362|
|Interest and dividend income||21,104||102,572||258,516||437,655|
|Foreign exchange gain||207,309||305,708||191,484||1,153,822|
|Total other income||488,848||566,761||768,660||2,155,966|
|Loss before income taxes||(1,343,278||)||(3,384,136||)||(694,999||)||(5,925,046||)|
|Provision for income taxes||71,944||(95,256||)||266,344||77,397|
|Less: net income attributable to non-controlling interests||(6,349||)||(9,558||)||26,596||82,127|
|Net loss attributable to MEMSIC, Inc.||$||(1,408,873||)||$||(3,279,322||)||$||(987,939||)||$||(6,084,570||)|
|Net loss per common share attributable 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 Depreciation and Amortization (EBITDA) (Unaudited)|
|Three months ended December 31,||Twelve months ended December 31,|
|Interest (income) expense, net||(21,104||)||(102,572||)||(258,516||)||(437,655||)|
|Income tax expense||71,944||(95,256||)||266,344||77,397|
|Depreciation and amortization||900,764||1,208,787||4,692,124||4,742,190|