O2Micro Reports Fourth Quarter & Fiscal Year End Earnings & Record Revenues
O2Micro® International Ltd. reported its financial results for the fourth quarter and fiscal year ended December 31, 2007. Net sales for the fourth quarter of 2007 were $47.2 million, an increase of 4.5% from the preceding quarter, and up 30% from the fourth quarter of the prior year. The GAAP gross margin on net sales was 58.7% in the fourth quarter, up from 57.5% in the preceding quarter, and up from 53.9% in the fourth quarter of the prior year.
The company recorded a GAAP operating margin of 15.8% in the fourth quarter. Research and development (R&D) expenditures were $9.8 million, or 20.7% of net sales. SG&A expenses were $8.9 million, or 18.9% of net sales. Other expenses consist primarily of net litigation expense of $1.5 million, or 3.3% of net sales. GAAP Net Income for the fourth quarter of 2007 was $7.7 million or 20 cents per American Depositary Share (ADS).
Net sales for the fiscal year ending December 31, 2007 were $165.5 million, an increase of 32.5% from the prior year. The GAAP gross margin on net sales was 57.1% in fiscal 2007, up from 54.6% in fiscal 2006.
The company recorded a GAAP operating margin of 14.3% in fiscal 2007. This compares with a GAAP operating loss of 3.7% in fiscal 2006. For the fiscal year ending 12/31/2007, R&D expenditures were $34.6 million, or 20.9% of net sales; SG&A expenses were $34.7 million, or 21.0% of net sales; and other operating expenses consist primarily of net litigation expense of $1.5 million, or 0.9% of net sales.
GAAP Net Income for the fiscal year ending December 31, 2007 and the fiscal year ending December 31, 2006 was $25.0 million and $743,000, respectively. GAAP Net Income per fully diluted ADS was 64 cents in fiscal 2007, up from 2 cents in fiscal 2006.
