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New Products for Commercial and Industrial Markets Entering Introductory Phase
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.
Revenues rose to
$20.0 millionfrom $13.0 millionin 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.
- Gross margin was 37.1% compared to 38.1% in the 2011 quarter.
Operating expenses totaled
$6.2 millioncompared to $6.4 millionin the 2011 quarter.
GAAP net income was
$1.2 million, or $0.05per diluted share, compared to a net loss of $1.3 million, or $0.06per diluted share, in the 2011 quarter.
$2.5 million, compared to ($0.2) millionin the 2011 quarter.
Chairman, President and CEO Dr.
Yang Zhaocommented, "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,
MEMSIChas 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."
Revenue is expected to be between
$14 million and $16 millionfor the second quarter of 2012.
GAAP net loss is expected to be in the range of
$0.04 to $0.06per share for the second quarter of 2012.
- Average diluted share count for the 2012 second quarter is estimated to be approximately 24.5 million.
Management will hold a conference call and webcast at
5:00 p.m. EDTon Tuesday, May 8, 2012to review and discuss the Company's results.
MEMSIC1Q 2012 financial results conference call and webcast
Tuesday, May 8, 2012
5:00 p.m. EDT
(877) 291-1367, domestic
(914) 495-8534, international
(855) 859-2056, pass code 73346507, domestic
(404) 537-3406, pass code 73346507, international
http://investor.memsic.com (live and replay)
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.
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'sunique 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 (Unaudited) March 31, December 31, 2012 2011 ASSETS Current assets: Cash and cash equivalents $ 36,266,765 $ 51,914,128 Restricted cash 3,370,034 3,791,189 Short-term investments 21,249,998 6,814,728
Accounts receivable, net of allowance for doubtful accounts of
$6,441as of March 31, 2012and December 31, 2011 6,683,630 6,068,904 Inventories 10,122,620 11,459,153 Other assets 3,430,284 2,050,787 Total current assets 81,123,331 82,098,889 Property and equipment, net 30,913,810 30,998,489 Long-term investments 2,600,000 2,600,000 Goodwill 604,764 606,976 Intangible assets, net 10,760,461 11,091,532 Other assets 138,641 136,633 Total assets $ 126,141,007 $ 127,532,519 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 6,546,703 $ 8,439,605 Accrued expenses 2,143,401 2,630,966 Advance research funding 3,370,034 3,791,189 Current portion of long-term debt 500,000 500,000 Total current liabilities 12,560,138 15,361,760 Note payable to bank, net of current portion 17,430,000 17,430,000 Building liability 8,147,246 8,161,288 Other liabilities 115,582 124,180 Total other liabilities 25,692,828 25,715,468 Stockholders' equity:
$0.00001par value; authorized, 45,000,000 shares; 23,992,968 and 23,983,813 shares issued and outstanding at March 31, 2012and December 31, 2011, respectively
Additional paid-in capital 101,603,729 101,266,272 Accumulated other comprehensive income 4,287,744 4,363,930 Accumulated deficit (18,707,631 ) (19,908,135 ) MEMSIC, Inc.stockholders' equity 87,184,082 85,722,307 Non-controlling interest related to joint ventures 703,959 732,984 Total stockholders' equity 87,888,041 86,455,291 Total liabilities and stockholders' equity $ 126,141,007 $ 127,532,519 MEMSIC, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended March 31, 2012 2011 Net sales $ 20,017,053 $ 12,954,920 Cost of goods sold 12,599,954 8,013,199 Gross profit 7,417,099 4,941,721 Operating expenses: Research and development 1,703,159 2,297,836 Sales and marketing 1,432,299 1,464,746 General and administrative 2,236,071 1,879,892 Depreciation 438,941 374,368 Amortization 396,123 405,935 Total operating expenses 6,206,593 6,422,777 Operating income (loss) 1,210,506 (1,481,056 ) Other income: Interest and dividend income 107,774 83,490 Foreign exchange gain (loss) (32,263 ) 190,676 Other, net 13,174 68,576 Total other income 88,685 342,742 Profit (loss) before income taxes 1,299,191 (1,138,314 ) Provision for income taxes 68,583 117,394 Net income (loss) 1,230,608 (1,255,708 ) Less: net income attributable to non-controlling interests 30,104 72,471 Net income (loss) attributable to MEMSIC, Inc. $ 1,200,504 $ (1,328,179 ) Net income (loss) per common share to MEMSIC, Inc.: Basic $ 0.05 $ (0.06 ) Diluted $ 0.05 $ (0.06 )
Weighted average shares outstanding used in calculating net income (loss) per common share:
Basic 23,846,864 23,811,058 Diluted 24,344,799 23,811,058 MEMSIC, Inc. Reconciliation of Net Income (Loss) to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) (Unaudited) Three months ended March 31, 2012 2011 Net income (loss) $ 1,200,504 $ (1,328,179 ) Interest (income) expense, net (107,774 ) (83,490 ) Income tax expense 68,583 117,394 Depreciation and amortization 1,308,152 1,069,320 EBITDA $ 2,469,465 $ (224,955 ) MEMSIC, Inc. Patricia Niu, 978-738-0900
Chief Financial Officer
Harriet Fried/ Jody Burfening, 212-838-3777
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- Revenues rose to