GEORGE TOWN, Grand Cayman, Nov. 4, 2009 (GLOBE NEWSWIRE) -- O2Micro(R) International Limited (Nasdaq:OIIM) reported its financial results today for the third quarter ended September 30, 2009.

Financial Results for the Third Quarter ending 9/30/2009:

O2Micro(R) International reported Q3 2009 GAAP revenue of $36.7 million. Q3 revenue increased by 6.0% from Q2 2009 and decreased by 3.0% from Q3 2008. The sequential increase was a function of seasonal demand for core power management products.

The GAAP gross margin was 60.6% in the third quarter of 2009. The gross margin compares favorably to both the second quarter and the year-ago period when the company recorded gross margins of 58.8% and 59.3%, respectively.

During Q3, the company recorded $21.9 million in GAAP operating expenses. This was up from $20.5 million in Q2 2009 and $21.7 million in Q3 2008. The SG&A expense was $13.4 million of the total operating expenses and increased from $12.5 million in Q2 and $8.9 million in the year-ago period. R&D expense was $8.5 million of total operating expenses in the third quarter, compared to $8.0 million in Q2 and $9.8 million in the comparable year-ago period. During the third quarter of 2008, the company also expensed $2.9 million for a one-time write-off of prepaid foundry services where there was no comparable expense in Q2 or Q3 2009.

GAAP income from operations was $352,000 in the third quarter of 2009. This compares with a GAAP loss from operations of $109,000 in the second quarter and GAAP income from operations of $719,000 in the year-ago period. This represents 1.0% of revenue in the recent quarter and (0.3%) and 1.9% in Q2 2009 and Q3 2008, respectively.

GAAP Net Income was $267,000 in Q3 2009. This compares favorably to GAAP Net Losses of $505,000 in Q2 and $12.6 million in Q3 2008. GAAP Net Income per fully diluted ADS was $0.01 in Q3 2009. This reverses losses per ADS of $0.01 and $0.34 in Q2 and the year-ago period, respectfully.

Financial Results for the Nine Months ending 9/30/2009:

For the nine months ending September 30, 2009, O2Micro(R) International reported GAAP revenue of $94.4 million versus $116.1 million for the corresponding nine months of 2008.

The GAAP gross margin for the first nine months of 2009 was 58.7%. This is consistent with the GAAP gross margin of 58.6% in the first nine months of 2008.

GAAP operating expenses were $59.1 million for the first nine months of 2009 and $60.7 million for the corresponding period in 2008. The operating loss was $3.7 million for the first nine months of 2009, compared to operating income of $7.4 million in the comparable year-ago period. The operating margins were (3.9%) and 6.4% of nine month revenue in 2009 and 2008, respectively.

GAAP Net Loss was $3.8 million and $5.9 million for the first nine months of 2009 and 2008, respectively. The Net Losses per ADS were $0.10 for the first nine months of 2009 and $0.16 for the corresponding period in 2008.

Supplementary Data:

The company ended the third quarter of 2009 with $124.5 million in working capital. This included unrestricted cash and investments of $120.7 million and the company did not have any debt. The unrestricted cash and investments amounted to $3.26 per ADS. The accounts receivable balance was $15.2 million as of 9/30/09 and there were 36 days sales outstanding. Inventory was $11.1 million as of 9/30/09 and turned over 4.7 times during the quarter. Total shareholder's equity was $180.0 million as of September 30th 2009 and the book value per ADS was $4.86.

As of September 30th 2009, O2Micro(R) International also counted 849 employees, including 538 engineers.

Management Commentary:

Sterling Du, Chairman and CEO, commented, "Our business has rebounded nicely from the low points of several quarters earlier. Now, our focus is to increase our profitability by leveraging our traditional strength in power management ICs."

Conference Call: O2Micro will hold its third quarter conference call at 2:00 p.m. PST, 5:00 p.m. EST.