GlobeNewswire Inc | Oct 29, 2021 08:00AM EDT

October 29, 2021

GEORGE TOWN, Grand Cayman, Oct. 29, 2021 (GLOBE NEWSWIRE) --

Operational Highlights:

-- 2021 Q3 revenue was $27.3 million. -- Revenue increased 22.6% compared to the same quarter in 2020. -- GAAP net income was $0.12 per fully diluted ADS, up from $0.10 per fully diluted ADS, for the same quarter a year ago. -- O2Micro expects the fourth quarter 2021 revenue to be in the range of $25.5 million to $26.5 million.

O2Micro International Limited (NASDAQ: OIIM)(O2Micro), a global leader in the design, development and marketing of high-performance integrated circuits and solutions, reported its financial results today for the third quarter ending September 30, 2021.

Financial Highlights for the Third Quarter ending September 30, 2021: O2Micro reported the third quarter 2021 revenue of $27.3 million within guidance provided on July 30, 2021. Revenue was up 22.6% from the same quarter in the previous year. The gross margin in the third quarter of 2021 was 52.0%, which was up from 51.8% in the same quarter of 2020. During the third quarter of 2021, the Company recorded total GAAP operating expenses of $10.6 million and was up from $8.4 million in the third quarter of 2020. The GAAP operating margins for the third quarter of 2021 was 13.3% compared to 14.0% in the third quarter of 2020. The Company reported 2021 Q3 GAAP net income of $3.7 million, or $0.12 per fully diluted ADS, compared to a GAAP net income of $2.9 million or $0.10 per fully diluted ADS in the comparable quarter of 2020.

Supplementary Data: The Company ended the third quarter of 2021 with $50.7 million in unrestricted cash and short-term investments or $1.78 per outstanding ADS, along with 344 employees worldwide of which 201 are engineers.

Management Commentary: O2Micros escalating growth continued through the third quarter with revenue increasing 4.1% from the prior quarter and 22.6% over the same quarter in 2020. Our battery business grew strongly despite the dynamic market and supply chain situation. Not only have the lithium-ion battery dominated the power tool market but the high-end tools, which is our focus, outgrows the other sectors. Our Intelligent Lighting group business continues to expand with recent design wins as the high-end TV market takes market share, said Sterling Du, O2Micros Chairman and CEO. These factors, along with continued investment to the RD and expanding packing testing capability, are leading O2Micro into sustainable long-term profitability.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME follows conference call information below

Conference Call:O2Micro will hold its third quarter conference call on October 29, 2021, at 6:00AM. Pacific, 9:00AM Eastern. You may participate using the following dial-in information.

Conference Code: 6414359

Participants, Int'l Toll: 800-767-8973Participants, US/CAN: 800-767-8973

The Call-in Audio Replay will be available following the call at 12:00PM Eastern Time (US & Canada) for the next 14 days. https://events.globalmeet.com/Public/WebRegistration/ZW5jPXNhQWNoekF6VklkSzg1T0VNUFBpN0lqN084dUh6T25wNFIzcUF2RFcrcSt3WU5HZTN0M3lzQ1dnd1lMOXlFSlRFNU00a2YvZGJzQWxCVjZTY0pUbkRBPT0=

An online replay will also be available at https://ir.o2micro.com following the conference.

About O2Micro:Founded in April 1995, O2Micro develops and markets innovative power management components for the Computer, Consumer, Industrial, and Automotive markets. Products include Backlighting, and Battery Power Management. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2Micro.com.

O2Micro, the O2Micro logo, and combinations thereof are registered trademarks of O2Micro. All other trademarks or registered trademarks are the property of their respective owners.

Statements made in this release that are not historical, including statements regarding O2Micro or its management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal Securities Laws. Such statements involve risks, speculation and uncertainties that may cause actual results to differ materially from those set forth in these statements or from management's current views and expectations. Risks and uncertainties in this release may include, without limitation, any one or combination of the following: the effect of competitive and economic factors; real property value fluctuations and market demand; legal changes in any relevant rules and regulations pertaining to O2Micro's business; changes in technology and industry standards, and O2Micro's reaction to those factors; consumer and business buying decisions with respect to our customers' products incorporating O2Micro's products; continued competitive pressures in the marketplace; the ability of O2Micro to deliver to the marketplace, and stimulate customer demand therein, for new products and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on O2Micro's gross margins; the inventory risk associated with O2Micro's need to order, or commit to order, product components and product capacity in advance of forecast customer orders; the continued availability of acceptable terms of certain components and services essential to O2Micro's business which are currently obtained by the Company from sole or limited sources; the effect that O2Micro's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity, availability or cost of products manufactured or services rendered; risks associated with O2Micro's international operations; the potential impact of a finding that O2Micro has infringed on the intellectual property rights of others, or that any third party may have infringed on O2Micro's intellectual property that may negatively affect O2Micro's business; O2Micro's legal classifications with governmental and regulatory agencies; O2Micro's dependency on the performance of distributors, carriers, independent sales representatives, and other resellers of O2Micro's products; the effect that product and service quality problems could have on O2Micro's sales ability and operating profits; the ability of O2Micro to deliver its products in a timely fashion to its customers, and the possible negative ramifications if such is not possible; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. Actual results may differ materially due to numerous risk factors. Such risk factors are more fully enumerated in O2Micro's 20-F Annual Filings, Annual Report(s), 6-K's, the Form F-1 filed in connection with the Company's initial public offering in August 2000, information posted on our website at www.o2micro.com, and other documents filed with the SEC, NASDAQ or any other public agency from time to time. The statements herein are based on dated information on the dates mentioned herein, which is subject to change. O2Micro assumes no obligation to update or revise the information provided on today, or any other forward-looking information, whether as a result of new information, future events or any other information that may arise. This information only speaks to the respective dates mentioned in said information.

O2MicroDaniel MeybergInvestor Relations

Gregory Communications FCAJoe Hassett

O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) (In Thousand U.S. Dollars, Except Per Share Amounts)

Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 OPERATING $ 27,270 $ 22,235 $ 76,711 $ 55,100 REVENUES COST OF 13,096 10,713 37,060 26,634 REVENUES GROSS PROFIT 14,174 11,522 39,651 28,466 OPERATING EXPENSESResearch anddevelopment 5,126 4,072 14,433 13,238 (1)Selling,general and 5,434 4,333 15,955 13,357 administrative(1) TotalOperating 10,560 8,405 30,388 26,595 Expenses INCOME FROM 3,614 3,117 9,263 1,871 OPERATIONS NON-OPERATING INCOMEInterest 48 92 186 436 incomeNet lossrecognized on - (171 ) - (212 )long-terminvestmentsForeignexchange gain 57 (124 ) 29 (184 )(loss) ? netGovernment 136 67 274 151 grantsOther ? net 101 204 344 430 TotalNon-operating 342 68 833 621 Income INCOME BEFORE 3,956 3,185 10,096 2,492 INCOME TAX INCOME TAX 279 255 776 722 EXPENSE NET INCOME 3,677 2,930 9,320 1,770 OTHERCOMPREHENSIVE (LOSS) INCOMEForeigncurrency (148 ) 576 36 494 translationadjustmentsUnrealized - - 1 1 pension gainTotal OtherComprehensive (148 ) 576 37 495 (Loss) Income COMPREHENSIVE $ 3,529 $ 3,506 $ 9,357 $ 2,265 INCOME EARNINGS PER ADSBasic $ 0.13 $ 0.11 $ 0.33 $ 0.07 Diluted $ 0.12 $ 0.10 $ 0.30 $ 0.06 ADS UNITS USEDIN EARNINGS PER ADSCALCULATION:Basic (in 28,478 27,040 28,323 26,917 thousands)Diluted (in 31,017 28,896 31,221 28,078 thousands) (1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:Research and $ 98 $ 66 $ 294 $ 213 developmentSelling,general and $ 345 $ 260 $ 996 $ 837 administrative

O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS(In Thousand U.S. Dollars, Except Share Amounts)

September 30, December 31, 2021 2020 ASSETS (Unaudited) (Audited) CURRENT ASSETS Cash and cash $ 22,073 $ 18,752 equivalentsRestricted cash 38 37 Short-term 28,661 29,054 investmentsAccounts 16,693 16,430 receivable ? netInventories 18,001 12,588 Prepaid expensesand other 3,423 2,548 current assetsTotal Current 88,889 79,409 Assets LONG-TERM 992 992 INVESTMENTS PROPERTY AND 22,407 17,266 EQUIPMENT ? NET OTHER ASSETS 3,858 4,369 TOTAL ASSETS $ 116,146 $ 102,036 LIABILITIES ANDSHAREHOLDERS? EQUITY CURRENT LIABILITIESNotes and $ 10,295 $ 7,995 accounts payableIncome tax 376 272 payableLease 977 865 liabilitiesAccrued expensesand other 5,355 5,934 currentliabilitiesTotal Current 17,003 15,066 Liabilities OTHER LONG-TERM LIABILITIESAccrued pension 144 177 liabilitiesDeferred income 690 545 tax liabilitiesLease 1,965 2,091 liabilitiesOther 69 68 liabilitiesTotal OtherLong-Term 2,868 2,881 Liabilities Total 19,871 17,947 Liabilities COMMITMENTS AND CONTINGENCIES SHAREHOLDERS? EQUITYPreferenceshares at $0.00002 parvalue per shareAuthorized ?250,000,000 - - sharesOrdinary sharesat $0.00002 par value per shareAuthorized ?4,750,000,000 sharesIssued ?1,669,036,600shares as ofSeptember 30,2021 andDecember 31,2020Outstanding ?1,425,507,250 33 33 and1,361,886,000shares as ofSeptember 30,2021 andDecember 31,2020,respectivelyAdditional 142,974 143,422 paid-in capitalAccumulated (37,951 ) (46,744 )deficitsAccumulatedother 5,777 5,740 comprehensiveincomeTreasury stock ?243,529,350 and307,150,600shares as ofSeptember 30, (14,558 ) (18,362 )2021 andDecember31, 2020,respectivelyTotalShareholders? 96,275 84,089 Equity TOTALLIABILITIES AND $ 116,146 $ 102,036 SHAREHOLDERS?EQUITY

Email: ir@o2micro.com