MEMSIC, Inc. (NasdaqGM: MEMS), the
industry's only MEMS solution provider to combine proprietary
thermal-based technology with advanced mixed signal processing circuitry
onto a single chip using a standard CMOS IC process, today announced
financial results for the first quarter ended March 31, 2008.
Revenue for the first quarter of 2008 was $6.3 million, a 45% increase
from the first quarter of 2007. Net income in the first quarter was $1.5
million on a GAAP basis, or $0.06 per diluted share, compared to
$779,000 in the first quarter of 2007. On a non-GAAP basis, which
excludes stock-based compensation charges of approximately $339,000, net
income was $1.9 million, or $0.08 per diluted share, compared to a
non-GAAP net income of $836,000, which excludes stock-based compensation
charges of $57,000, in the first quarter of 2007.
Dr. Yang Zhao, Chief Executive Officer of MEMSIC said, “We
continued our rapid pace of revenue growth in the first quarter of 2008
and produced earnings at the upper end of expectations. While our
revenue results were at the lower end of the guidance range due to
inventory adjustments at customers, this issue appears to be gradually
improving. Early indications show our device business increasing in Q2.
In addition, we were pleased to report our first revenues from the
Olympic-torch project that we announced last quarter.”
Outlook
For the second quarter of 2008, MEMSIC anticipates revenue in the range
of $7.0 to $7.3 million, none of which is related to the Olympic torch
project, as we expect revenue for subsequent orders, if any, to be
recognized after the second quarter. GAAP net income for the second
quarter of 2008 is anticipated to be in the range of $0.07 to $0.08 per
diluted share. Non-GAAP net income, which excludes approximately
$360,000 in stock-based compensation expenses, is anticipated to be in
the range of $0.08 to $0.09 per diluted share. Average diluted share
count for the quarter is estimated to be 23.8 million.
Use of Non-GAAP Financial Measures
A "non-GAAP financial measure" is a numerical measure of a company's
historical or future financial performance that excludes amounts that
are included in the most directly comparable measure calculated and
presented in the GAAP statement of operations. MEMSIC is providing the
non-GAAP historical and forward-looking financial measures presented
above as the company believes that these figures are helpful in allowing
individuals to better assess the ongoing nature of MEMSIC's core
operations.
Net income (loss) (non-GAAP) and net income (loss) per share (non-GAAP),
as we present them in the financial data included in this press release,
exclude non-cash stock-based compensation expense. The company uses
these non-GAAP financial measures internally to focus management on
period-to-period changes in the company's core business. Therefore, the
company believes that this information is meaningful in addition to the
information contained in the GAAP presentation of financial information.
The presentation of this additional non-GAAP financial information is
not intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with GAAP.
Conference Call
Management will hold a conference call and webcast at 5:00 p.m. ET today
to review and discuss the Company’s results
and outlook.
What:
MEMSIC first quarter 2008 financial results conference call and
webcast
When:
Monday, May 5, 2008
Time:
5:00 p.m. ET
Live Call:
(877) 545-1490, domestic
(719) 325-4862, international
Replay:
(888) 203-1112, passcode 3453509, domestic
(719) 457-0820, passcode 3453509, international
Webcast:
http://investor.memsic.com
(live and replay)
About MEMSIC
Headquartered in Andover, Massachusetts, MEMSIC, Inc. provides advanced
semiconductor sensor and system solutions based on integrated micro
electromechanical systems, or MEMS, technology and mixed signal circuit
design. Its accelerometer products are used to measure tilt, shock,
vibration and acceleration, and have a wide range of applications such
as mobile phones, automotive safety systems and video projectors. MEMSIC
combines proprietary thermal-based MEMS technology and advanced analog
mixed signal processing circuitry design into a single chip using a
standard complementary metal-oxide semiconductor, or CMOS, process.
For further information, please visit www.memsic.com.
Safe Harbor Statement
Statements included in this press release which are not historical in
nature, including statements about MEMSIC’s
expected financial results for 2008, 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. When used in this press release the terms
"anticipate," "believe," "estimate," "expect," "may," "objective,"
"plan," "possible," "potential," "project," "will" and similar
expressions identify forward-looking statements. Important factors that
could cause actual results to differ include those identified under the
heading “Risk Factors”
in the company’s annual report on Form 10-K
for the year ended December 31, 2007, as well as the following: our
limited operating history makes it difficult to evaluate our business
and prospects; our operating results may fluctuate and are difficult to
predict and if we do not meet financial expectations of securities
analysts or investors, the price of our common stock will likely
decline; we do not have long-term purchase commitments from our
customers, and our ability to accurately forecast demand for and sales
of our products is limited, which may result in excess or insufficient
inventory and uncertainty and volatility with respect to our revenue
from period to period; we depend on a limited number of customers for a
high percentage of our revenues, and the loss of, or a significant
reduction in orders from, any of these customers would significantly
reduce our revenues; our products are complex and defects in our
products could result in a loss of customers, damage to our reputation,
decreased revenue, unexpected expenses, loss of market share and
warranty and product liability claims; we may not be able to manage our
business growth effectively, and failure to do so could strain our
management, operating and other resources, which could materially and
adversely affect our business and growth potential; and the average
selling prices of products in our markets have historically decreased
rapidly and will likely do so in the future, which could harm our gross
margins and results.
The forward-looking statements contained in this press release are made
as of the date hereof, and we do not undertake any obligation to update
any forward-looking statements, whether as a result of future events,
new information or otherwise.
MEMSIC, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,
December 31,
2008
2007
ASSETS
Current assets:
Cash and cash equivalents
$
53,640,813
$
20,708,794
Short-term investments
3,000,000
46,925,000
Accounts receivables, net of allowance for doubtful accounts of
$8,503 as of March 31, 2008 and December 31, 2007
5,264,033
5,917,457
Inventories
6,236,752
5,614,050
Deferred taxes
523,004
497,408
Other assets
1,632,101
1,090,513
Total current assets
70,296,703
80,753,222
Property and equipment, net
9,795,115
7,677,774
Long-term investments
17,750,000
-
Other assets
475,956
420,568
Total assets
$
98,317,774
$
88,851,564
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
2,086,656
$
2,224,349
Accrued expenses
1,396,193
2,189,583
Note payable
1,000,000
1,000,000
Total current liabilities
4,482,849
5,413,932
Stockholders’ equity
Common stock, $0.00001 par value; authorized,100,000,000 shares,
23,629,100 and 22,768,600 shares issued and outstanding at March 31,
2008 and December 31, 2007, respectively
236
228
Additional paid-in capital
95,266,054
87,176,262
Accumulated other comprehensive income
1,834,070
1,063,747
Accumulated deficit
(3,265,435
)
(4,802,605
)
Total stockholders' equity
93,834,925
83,437,632
Total liabilities and stockholders’ equity
$
98,317,774
$
88,851,564
MEMSIC, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2008
2007
Net sales
$
6,258,228
$
4,315,739
Cost of goods sold
2,721,037
1,393,100
Gross profit
3,537,191
2,922,639
Operating expenses:
Research and development
780,601
682,831
Sales and marketing
712,097
568,640
General and administrative
1,293,528
648,629
Total operating expenses
2,786,226
1,900,100
Operating income
750,965
1,022,539
Other income (expense):
Interest and dividend income
712,519
148,828
Interest expense
(15,614
)
-
Other, net
103,920
-
Total other income (expense)
800,825
148,828
Earnings before income taxes
1,551,790
1,171,367
Provision for income taxes
14,622
392,433
Net income
$
1,537,168
$
778,934
Net income available to common stockholders:
Basic
$
1,537,168
$
52,055
Diluted
$
1,537,168
$
66,266
Net income per common share:
Basic
$
0.07
$
0.02
Diluted
$
0.06
$
0.02
Weighted average shares outstanding used in calculating net income
per common share:
Basic
23,491,990
2,344,687
Diluted
23,670,037
3,128,689
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