This company has been acquired
O2Micro International (OIIM) Stock Overview
O2Micro International Limited, together with its subsidiaries, designs, develops, and markets integrated circuits and solutions for power management components and systems in China, Singapore, Taiwan, Malaysia, Korea, the Philippines, Japan, the United States, and internationally. More details
| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
OIIM Community Fair Values
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O2Micro International Limited Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$4.90 |
| 52 Week High | US$4.93 |
| 52 Week Low | US$2.85 |
| Beta | 0.64 |
| 1 Month Change | 4.70% |
| 3 Month Change | 11.62% |
| 1 Year Change | 21.29% |
| 3 Year Change | 295.16% |
| 5 Year Change | 216.13% |
| Change since IPO | -76.40% |
Recent News & Updates
O2Micro stock gains 17% postmarket on revised bid from consortium
O2Micro International (NASDAQ:OIIM) stock gained 17% postmarket on Monday after a consortium reduced its non-binding offer to acquire its outstanding shares not already owned by the group to $4.90 per ADS (or $0.098 per ordinary share). The group is comprised of FNOF Precious Honour, OIIM CEO Sterling Du, OIIM CFO Perry Kuo and a director of the firm. There can be no assurance that the consortium will make a definitive offer to OIIM or that the proposed deal will be approved. The consortium's earlier offer was $5.50/ADS (or $0.11/ordinary share in cash).O2Micro International: The Status Quo Continues
Summary OIIM has gotten rocked by several hits in the last six months, including downbeat guidance, but the stock has managed to shrug it off. The outlook sees earnings go down in the near term due to an inventory problem, but the problem is not expected to last into the new year. Multiples are not as nice as before due to revised earnings expectations, but they are still very fair for a company with a healthy balance sheet. Long OIIM is worth it in light of current valuations and an expected recovery in 2023, regardless of whether the proposed buyout succeeds or not. O2Micro International (OIIM) has not done much in recent months. The most recent quarterly report caused a small drop in the stock, but the response was relatively underwhelming in light of what the latest guidance called for. It's been mostly sideways for the last six months or so for the stock. Still, sales and profits are under pressure at OIIM due to headwinds popping up, but it appears there are other forces at work that are powerful enough to keep the status quo intact. Why will be covered next. The stock seems to be waiting for something The chart below shows how March was a pivotal month for OIIM. The stock had been declining up to that point, only to change direction in early March when news broke of a buyout proposal for OIIM. The non-binding proposal values OIIM at $5.50 per ADS, which is higher than what OIIM is going for, even to this day. Note that "the proposal constitutes only a preliminary indication of interest and does not constitute any funding commitment" as reiterated before by OIIM. OIIM has put together a committee to evaluate the proposal, but there’s been nothing of significance since then. The special committee continues to review the proposed transaction and no decisions have been made as to the proposal, except to stay tuned for further updates in the future. In a nutshell, the proposal is out there, but it is basically in limbo. It may go through, but it may not go through as well. Source: finviz.com Still, while the stock has yet to get anywhere near the proposed acquisition price, the proposal seems to have brought some semblance of stability to the stock, certainly in comparison to what it was doing beforehand. The stock was falling prior to the proposal, but it has since gone sideways more or less. The stock is still down 25% YTD, but it is also higher than where it was prior to the proposal being made. The fact that the stock trades below the proposed acquisition price suggests a fair amount of skepticism towards the proposal. It’s possible the proposal may not go through for a number of reasons. For instance, shareholders may not agree or financing may not be there. On the other hand, the proposal seems to have put a floor under the stock, keeping it from falling too much, unlike how it behaved prior to the proposal. In that sense, the proposal has been a positive for OIIM. It’s not as if there have been no forces exerting pressure on the stock. For instance, the stock market has seen lots of volatility in 2022 with many stocks suffering big declines. Yet OIIM has for the most part shrugged it off. Nothing has been able to change the trajectory of the stock in the last six months. This includes the most recent earnings report, which probably should have moved the stock more than it did as it contained a fair amount of bad news. If circumstances had been different and there was no pending buyout proposal, the stock may have reacted differently. Yet it passed almost unnoticed. OIIM has an inventory problem The most recent quarterly numbers were actually better than expected with revenue and gross margins near the high end of guidance. Q2 revenue still declined by 15.8% YoY, but it also increased by 2% QoQ to $22M. Net income was $0.56M or $0.02 per ADS in terms of GAAP, down QoQ and YoY. In terms of non-GAAP, net income was $2M or $0.06 per share, a decline of 50% YoY, but an increase of 20% QoQ. Note that the GAAP numbers were negatively impacted by a one-time expense of $0.8M. Stock-based compensation expense also lowered GAAP earnings by $586,000, but they are excluded in the non-GAAP numbers. OIIM ended Q2 with cash and equivalents of $49.5M, which translates to $1.70 per ADS. The table below shows the numbers for Q2 FY2022. (GAAP) Q2 FY2022 Q1 FY2022 Q2 FY2021 QoQ YoY Revenue $22.058M $21.625M $26.205M 2.00% (15.83%) Gross margin 52.6% 52.6% 51.5% 110bps Operating margin 2.1% 3.9% 12.5% (180bps) (1040bps) Operating expenses $11.142M $10.535M $10.206M 5.76% 9.17% Income from operations $0.469M $0.833M $3.281M (43.70%) (85.71%) Net income (loss) $0.555M $0.915M $3.161M (39.34%) (82.44%) EPADS $0.02 $0.03 $0.10 (33.33%) (80.00%) (Non-GAAP) Net income $2.0M $1.6M $3.6M 25.00% (44.44%) EPADS $0.06 $0.05 $0.12 20.00% (50.00%) Source: OIIM Form 6-K However, although the Q2 numbers showed some improvement over the ones in Q1, that’s not expected to be the case in Q3. The outlook sees a significant deterioration in the quarterly numbers. Guidance calls for Q3 FY2022 revenue of $17-19M, a decline of 18.2% QoQ and 34% YoY at the midpoint. Gross margin is expected to fall by 100 basis points YoY. OIIM barely made it, but it managed to avoid ending up with losses in Q2. However, this is not expected to continue in Q3. The drop in the top line and a reduction in gross margin is expected to push OIIM into the red. Consensus estimates have been revised downwards in light of the worse-than-expected guidance and are now calling for a GAAP loss of $0.06 per share in Q3, the first loss for OIIM since Q1 FY2020 when COVID-19 showed up. Q3 FY2022 (guidance) Q2 FY2021 YoY (midpoint) Revenue $17.0-19.0M $27.3M (34.07%) Gross margin 50-52% 52% (100bps) OIIM added some color as to the reasoning behind the latest guidance. From the Q2 earnings call: “In Q3, we are facing an inventory correction due to weaker demand from some selected market by inflation. We will carefully be managing the inventory, while we also continue to qualify second sources for cost and additional supply chains as reported area.” A transcript of the Q2 FY2022 earnings call can be found here. Similar to a growing number of companies in the semiconductor space, OIIM is dealing with excess inventory at some of its customers, especially in the battery management segment. Some customers have enough inventory for Q3 and Q4 to a lesser degree, which means they will need less from OIIM in the coming quarters. “We expect to be through the majority of the inventory correction in Q3. We understand from the leaders list primarily in the power tool and vacuum cleaner area. We understand the magnitude of those inventories and we understand their ongoing run rates. In most cases we give direct forecasts from them for their ongoing run rate. So we do expect to have most of the inventory correction done in Q3 and some into Q4. We don't expect to have any issues of any significance as we move into next year.”Recent updates
Shareholder Returns
| OIIM | US Semiconductor | US Market | |
|---|---|---|---|
| 7D | 1.2% | 1.9% | 1.1% |
| 1Y | 21.3% | 110.1% | 28.7% |
Return vs Industry: OIIM underperformed the US Semiconductor industry which returned 57% over the past year.
Return vs Market: OIIM exceeded the US Market which returned 14.1% over the past year.
Price Volatility
| OIIM volatility | |
|---|---|
| OIIM Average Weekly Movement | 3.9% |
| Semiconductor Industry Average Movement | 11.0% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.4% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: OIIM has not had significant price volatility in the past 3 months.
Volatility Over Time: OIIM's weekly volatility has decreased from 10% to 4% over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1995 | 345 | Sterling Du | www.o2micro.com |
O2Micro International Limited, together with its subsidiaries, designs, develops, and markets integrated circuits and solutions for power management components and systems in China, Singapore, Taiwan, Malaysia, Korea, the Philippines, Japan, the United States, and internationally. The company offers analog and mixed-signal integrated circuits that manages and provides power for LCD and LED lighting; controls and monitors battery charging and discharging in portable electronic devices and vehicles; performs DC/DC and AC/DC conversion; and provides select and switch functionality between power sources. Its products are primarily used in the consumer electronics, computer, industrial, communication, and automotive markets for applications, including LCD and LED monitors, LCD and LED televisions, notebook and tablet computers, low/zero emission vehicles, mobile phones, power tools, energy efficient technology relating to batteries, LED lighting, and portable electronics devices.
O2Micro International Limited Fundamentals Summary
| OIIM fundamental statistics | |
|---|---|
| Market cap | US$143.02m |
| Earnings (TTM) | US$3.00m |
| Revenue (TTM) | US$86.23m |
Is OIIM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OIIM income statement (TTM) | |
|---|---|
| Revenue | US$86.23m |
| Cost of Revenue | US$40.51m |
| Gross Profit | US$45.72m |
| Other Expenses | US$42.72m |
| Earnings | US$3.00m |
Last Reported Earnings
Sep 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.10 |
| Gross Margin | 53.02% |
| Net Profit Margin | 3.48% |
| Debt/Equity Ratio | 0% |
How did OIIM perform over the long term?
See historical performance and comparisonCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2023/03/05 23:25 |
| End of Day Share Price | 2023/03/02 00:00 |
| Earnings | 2022/09/30 |
| Annual Earnings | 2021/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
O2Micro International Limited is covered by 10 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Theodore O'Neill | Litchfield Hills Research, LLC |
| Mark Harding | Maxim Group |
| Ronald Barone | Maxim Group |