GEORGE TOWN, Grand Cayman, April 30, 2014 (GLOBE NEWSWIRE) — O2Micro® International Limited (Nasdaq:OIIM), a global leader in the design, development and marketing of high-performance integrated circuits and solutions, reported its financial results today for the first quarter of 2014, ending March 31, 2014.

Financial Highlights for the First Quarter ending March 31, 2014

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O2Micro International Limited reported Q1 2014 revenue of $16.5 million. Revenue was down 14% sequentially and down 5% from the comparable year-ago quarter. The gross margin in the first quarter of 2014 was 51.5%. The gross margin was up from 50.1% in the prior quarter and up from 50.0% in the first quarter of 2013. The gross margin remains in our target range and varies primarily with revenue level and product mix. During the first quarter of 2014, the company recorded total GAAP operating expenses of $11.6 million, compared to $15.0 million in the fourth quarter of 2013 and $14.1 million in the year-ago Q1 period. The respective GAAP operating margins for the first quarter of 2014, the fourth quarter of 2013, and first quarter of 2013 were (18.9%), (28.4%), and (31.2%).

GAAP net loss was $2.9 million in Q1 2014. This compares to a GAAP net loss of $5.1 million in the fourth quarter of 2013 and a GAAP net loss of $5.1 million in Q1 2013. GAAP net loss per fully diluted ADS was $0.10 in Q1 2014. This compares to a GAAP net loss per fully diluted ADS of $0.18 in Q4 2013 and a GAAP net loss per fully diluted ADS of $0.17 in Q1 2013.

Supplementary Data:

The company ended the first quarter of 2014 with $72.1 million in unrestricted cash and short-term investments or $2.60 per outstanding ADS. The accounts receivable balance was $8.1 million and represented 49 days sales outstanding at the end of Q1 2014. Inventory was $8.2 million or 87 days and turned over 4.2 times during Q1 2014. As of March 31, 2014, the company had $81.1 million in working capital and the book value was $122.4 million, or $4.42 per outstanding ADS.

As of March 31, 2014, O2Micro International Limited counted 475 employees, including 263 engineers.

Management Commentary:

“First quarter 2014 revenue of $16.5 million, was at the higher range of the updated guidance that we provided in late March. As previously noted, Q1 revenue was impacted by the combination of weakness in our TV and notebook end markets, as well as production delays in some general lighting customers,” said Sterling Du, O2Micro’s Chairman and CEO. “Looking forward, we continue to see solid acceptance of our new products in design win activity and we have confidence that our carefully chosen growth drivers, including LED general lighting, backlighting and power management, will lead to growth in our second quarter as we approach our near-term goal of a return to profitability.”

Conference Call: O2Micro will hold its first quarter conference call today, April 30, 2014, at 6:00 a.m. PDT, 9:00 a.m. EDT. You may participate using the following dial-in information.

In the US and CANADA:        888-438-5524, pass code # 1389272

INTERNATIONAL participants:        719-325-2484, pass code # 1389272

A replay of the call will be available by phone for one week following the live call. The replay can be accessed using the following dial-in information.

In the US and CANADA:        888-203-1112, pass code # 1389272

INTERNATIONAL participants:        719-457-0820, pass code # 1389272

A live webcast will also be available on the company website at www.o2Micro.com, and an online replay will be available for one week.

About O2Micro

Founded in April 1995, O2Micro develops and markets innovative power management components for the Computer, Consumer, Industrial, Automotive and Communications markets. Products include LED General Lighting, Backlighting, Battery Management and Power Management.

O2Micro International maintains an extensive portfolio of intellectual property with 26,272 patent claims granted, and over 27,000 more pending. 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’s or 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. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Factors that could cause actual results to differ materially include risks and uncertainties such as reduced demand for products of electronic equipment manufacturers which include O2Micro’s products due to adverse economic conditions in general or specifically affecting O2Micro’s markets, technical difficulties and delays in the developments process, and errors in the products. You are also referred to the Form F-1 in connection with the company’s initial public offering in August 2000, Form F-3 in connection with the company’s public offering in November 2001, and the annual reports on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The company assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

CONTACT: Scott L. Anderson

Director of Investor Relations, O2Micro

Phone: 408.987.5920, x8888

Email: [email protected]