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| [May 08, 2012] |
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MEMSIC Announces First-Quarter Sales and Profits
ANDOVER, Mass. --(Business Wire)--
MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider,
today announced financial results for the first quarter ended March 31,
2012.
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Revenues rose to $20.0 million from $13.0 million in the 2011 quarter.
Total shipments of our sensor products grew to 32.1 million units from
12.6 million units in the prior-year period.
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Gross margin was 37.1% compared to 38.1% in the 2011 quarter.
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Operating expenses totaled $6.2 million compared to $6.4 million in
the 2011 quarter.
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GAAP net income was $1.2 million, or $0.05 per diluted share, compared
to a net loss of $1.3 million, or $0.06 per diluted share, in the 2011
quarter.
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EBITDA was $2.5 million, compared to ($0.2) million in the 2011
quarter.
Chairman, President and CEO Dr. Yang Zhao commented, "MEMSIC's solid
first-quarter results were driven by continued strong sales of our
magnetic sensor in the smartphone market. In total, revenues rose 55%
year over year. Our outstanding innovations in technology, design and
our fast manufacturing responsiveness to surges in market demand,
together with continued expense control, contributed to our bottom-line
results, producing a profitable quarter despite the persistent price
pressures in the industry.
"Due to a significant drop in expected volume in Q2 over Q1 in the
smartphone models we were designed into with a large customer, we expect
MEMSIC's Q2 2012 revenues to be flat compared to last year's period.
Nonetheless, we remain optimistic about our prospects for longer-term
design-win expansion into more smartphone models and for revenue
diversification into additional customers and regions. As the market for
magnetic sensors is continuously growing towards one billion units per
year, we are confident that this short-term reduction in volume will not
slow down our product market entry and revenue diversification and that
MEMSIC, as a major market player in magnetic products, will resume
growth in the coming quarters."
Dr. Zhao continued, "The new fully integrated 3D electronic compass
product we are announcing today offers the highest heading accuracy in
today's market. Along with this new product, we will also release our
sensor integration algorithm and software that leverages MEMSIC'S proven
11DOF (Degree Of
Freedom) inertial sensing system
integration product line, which has been successfully sold into
high-precision applications in industrial and avionics for a decade.
This system-level solution outperforms any 'sensor fusion' product
available in the market today."
Dr. Zhao concluded, "Over the past years, MEMSIC has been leading
technology trends by pioneering MEMS sensor system integration and
solution products for a wide range of applications in the industrial and
aviation markets. This quarter we are introducing a high-performance
mass flow module that exemplifies our groundbreaking work. Targeting
home natural gas metering and industrial gas flow control, the product
is based on MEMSIC's proprietary and proven monolithic CMOS MEMS IC
thermal sensor technology. Our high-precision MEMS-based full electronic
flow module will offer a superior replacement for the traditional bulky
mechanical flow module, and can be easily integrated with MEMSIC's
proven Wireless Sensor Network (WSN) products for smart meter networks."
Outlook
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Revenue is expected to be between $14 million and $16 million for the
second quarter of 2012.
-
GAAP net loss is expected to be in the range of $0.04 to $0.06 per
share for the second quarter of 2012.
-
Average diluted share count for the 2012 second quarter is estimated
to be approximately 24.5 million.
Conference Call
Management will hold a conference call and webcast at 5:00 p.m. EDT on
Tuesday, May 8, 2012 to review and discuss the Company's results.
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What:
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MEMSIC 1Q 2012 financial results conference call and webcast
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When:
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Tuesday, May 8, 2012
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Time:
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5:00 p.m. EDT
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Live Call:
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(877) 291-1367, domestic
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(914) 495-8534, international
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Replay:
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(855) 859-2056, pass code 73346507, domestic
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(404) 537-3406, pass code 73346507, international
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Webcast:
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http://investor.memsic.com
(live and replay)
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About Non-GAAP Financial Information
EBITDA is a measure used by management to evaluate the Company's ongoing
operations and as a general indicator of its operating cash flow (in
conjunction with a cash flow statement that also includes, among other
items, changes in working capital and the effect of non-cash charges).
The Company defines EBITDA as net income, plus interest expense, net of
interest income, provision for income taxes, and depreciation and
amortization. Management believes EBITDA is useful to investors because
it is frequently used by securities analysts, investors and other
interested parties in the comparative evaluation of companies. Because
not all companies use identical calculations, the Company's presentation
of EBITDA and EBITDA per share may not be comparable to similarly titled
measures of other companies. EBITDA is not a recognized term under GAAP
and does not purport to be an alternative to net income as a measure of
operating performance or to cash flows from operating activities as a
measure of liquidity. Additionally, EBITDA is not intended to be a
measure of free cash flow for management's discretionary use as it does
not reflect certain cash requirements such as interest payments, tax
payments and debt service requirements.
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.
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MEMSIC, Inc.
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CONSOLIDATED BALANCE SHEETS
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(Unaudited)
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March 31,
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December 31,
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2012
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2011
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ASSETS
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Current assets:
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Cash and cash equivalents
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$
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36,266,765
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$
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51,914,128
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Restricted cash
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3,370,034
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3,791,189
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Short-term investments
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21,249,998
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6,814,728
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Accounts receivable, net of allowance for doubtful accounts of
$6,441 as of March 31, 2012 and December 31, 2011
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6,683,630
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6,068,904
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Inventories
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10,122,620
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11,459,153
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Other assets
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3,430,284
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2,050,787
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Total current assets
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81,123,331
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82,098,889
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Property and equipment, net
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30,913,810
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30,998,489
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Long-term investments
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2,600,000
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2,600,000
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Goodwill
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604,764
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606,976
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Intangible assets, net
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10,760,461
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11,091,532
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Other assets
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138,641
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136,633
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Total assets
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$
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126,141,007
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$
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127,532,519
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$
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6,546,703
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$
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8,439,605
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Accrued expenses
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2,143,401
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2,630,966
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Advance research funding
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3,370,034
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3,791,189
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Current portion of long-term debt
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500,000
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500,000
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Total current liabilities
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12,560,138
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15,361,760
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Note payable to bank, net of current portion
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17,430,000
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17,430,000
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Building liability
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8,147,246
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8,161,288
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Other liabilities
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115,582
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124,180
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Total other liabilities
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25,692,828
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25,715,468
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Stockholders' equity:
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Common stock, $0.00001 par value; authorized, 45,000,000 shares;
23,992,968 and 23,983,813 shares issued and outstanding at March
31, 2012 and December 31, 2011, respectively
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240
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240
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Additional paid-in capital
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101,603,729
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101,266,272
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Accumulated other comprehensive income
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4,287,744
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4,363,930
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Accumulated deficit
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(18,707,631
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)
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(19,908,135
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)
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MEMSIC, Inc. stockholders' equity
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87,184,082
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85,722,307
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Non-controlling interest related to joint ventures
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703,959
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732,984
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Total stockholders' equity
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87,888,041
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86,455,291
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Total liabilities and stockholders' equity
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$
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126,141,007
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$
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127,532,519
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MEMSIC, Inc.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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Three months ended March 31,
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2012
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2011
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Net sales
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$
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20,017,053
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$
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12,954,920
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Cost of goods sold
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12,599,954
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8,013,199
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Gross profit
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7,417,099
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4,941,721
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Operating expenses:
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Research and development
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1,703,159
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2,297,836
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Sales and marketing
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1,432,299
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1,464,746
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General and administrative
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2,236,071
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1,879,892
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Depreciation
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438,941
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374,368
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Amortization
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396,123
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405,935
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Total operating expenses
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6,206,593
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6,422,777
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Operating income (loss)
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1,210,506
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(1,481,056
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)
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Other income:
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Interest and dividend income
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107,774
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83,490
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Foreign exchange gain (loss)
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(32,263
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)
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190,676
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Other, net
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13,174
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68,576
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Total other income
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88,685
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342,742
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Profit (loss) before income taxes
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1,299,191
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(1,138,314
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)
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Provision for income taxes
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68,583
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117,394
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Net income (loss)
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1,230,608
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(1,255,708
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)
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Less: net income attributable to non-controlling interests
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30,104
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72,471
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Net income (loss) attributable to MEMSIC, Inc.
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$
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1,200,504
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$
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(1,328,179
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)
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Net income (loss) per common share to MEMSIC, Inc.:
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Basic
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$
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0.05
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$
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(0.06
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Diluted
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$
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0.05
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$
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(0.06
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)
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Weighted average shares outstanding used in calculating net income
(loss) per common share:
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Basic
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23,846,864
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23,811,058
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Diluted
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24,344,799
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23,811,058
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MEMSIC, Inc.
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Reconciliation of Net Income (Loss) to Earnings Before Interest,
Taxes and Depreciation and Amortization (EBITDA) (Unaudited)
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|
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Three months ended March 31,
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2012
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2011
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Net income (loss)
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|
$
|
1,200,504
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$
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(1,328,179
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)
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Interest (income) expense, net
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(107,774
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)
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|
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(83,490
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)
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Income tax expense
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|
|
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68,583
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|
|
|
117,394
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Depreciation and amortization
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|
1,308,152
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|
|
|
1,069,320
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EBITDA
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$
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2,469,465
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$
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(224,955
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