O2Micro International Limited reports 222% Net Income growth in 2020 and 28.6% Revenue growth
02/05/2021 • About O2Micro International Limited (
$OIIM) • By InTwits
O2Micro International Limited reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: in FY2020 vs. -4.7% in FY2019 vs. -7.4% in FY2016
- O2Micro International Limited spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.5%. Average EBITDA Margin for the same period was -5.7%
- The company has potentially unprofitable business model: ROIC is 6.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
O2Micro International Limited's Revenue surged on 28.6%. Revenue growth showed acceleration in FY20Q4 - it increased 29.1% YoY.
Gross Margin decreased slightly on 0.92 pp from 52.5% to 51.6% in FY2020. SG&A as a % of Revenue decreased on 9.0 pp from 31.7% to 22.6% in FY2020.
Net Income margin jumped on 16.1 pp from -8.3% to 7.8% in FY2020.
Return on investment
The company operates at low ROIC (6.7%) and ROE (7.7%). ROIC surged on 14.7 pp from -8.0% to 6.7% in FY2020. ROE surged on 14.2 pp from -6.5% to 7.7% in FY2020. During FY2016-FY2020 ROIC bottomed in FY2018 at -10.4% and was growing since that time.
Leverage (Debt)
Debt increased on 7.1% while cash surged on 75.3%.
O2Micro International Limited has no short term refinancing risk: cash is higher than short term debt (2,167.9%).
Financial and operational results
O2Micro International Limited ($OIIM) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 56.561 | 60.205 | 62.714 | 60.928 | 78.335 | 28.6% |
| Gross Profit | 29.244 | 30.779 | 31.973 | 31.968 | 40.384 | 26.3% |
| SG&A | 19.481 | 19.047 | 20.332 | 19.286 | 17.742 | -8.0% |
| EBITDA | -4.177 | -4.571 | -6.484 | -2.837 | | |
| EBIT | | | | -4.617 | | |
| Net Income | -2.986 | -6.145 | 2.088 | -5.039 | 6.127 | |
| Stock Based Compensation | | | | 1.462 | | |
Balance Sheet
|
|---|
| Cash | 31.332 | 28.520 | 32.414 | 10.696 | 18.752 | 75.3% |
| Accounts Receivable | | | | 10.335 | | |
| Inventory | | | | 8.796 | | |
| Accounts Payable | | | | 4.867 | | |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.827 | 0.865 | 4.6% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 1.932 | 2.091 | 8.2% |
Cash flow
|
|---|
| Capex | 0.673 | 0.704 | 1.272 | 1.672 | | |
Ratios
|
|---|
| Revenue growth | 3.1% | 6.4% | 4.2% | -2.8% | 28.6% | |
| EBITDA growth | -65.1% | 9.4% | 41.9% | -56.2% | | |
|
|---|
| Gross Margin | 51.7% | 51.1% | 51.0% | 52.5% | 51.6% | -0.9% |
| EBITDA Margin | -7.4% | -7.6% | -10.3% | -4.7% | |
| EBIT Margin | | | | -7.6% | |
| SG&A, % of revenue | 34.4% | 31.6% | 32.4% | 31.7% | 22.6% | -9.0% |
| SBC, % of revenue | | | | 2.4% | |
| Net Income Margin | -5.3% | -10.2% | 3.3% | -8.3% | 7.8% | 16.1% |
| CAPEX, % of revenue | 1.2% | 1.2% | 2.0% | 2.7% | | |
|
|---|
| ROIC | -7.0% | -7.9% | -10.4% | -8.0% | 6.7% | 14.7% |
| ROE | -3.6% | -7.8% | 2.7% | -6.5% | 7.7% | 14.2% |
People
|
|---|
| Employees | | | | 378 | | |
| Revenue/Employee, th. $ | | | | 161 | | |
O2Micro International Limited ($OIIM) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 16 | 17 | 22 | 23 | | 19.9% | 23.5% | 39.0% | 29.1% |
| Net Income | -2 | 0 | 3 | 4 | | - | - | - | 117.9% |
Balance Sheet
|
|---|
| Cash | 16 | 13 | 11 | 19 | | -48.0% | -2.5% | -41.9% | 70.5% |
| Short Term Debt | 1 | 1 | 1 | 1 | | -28.6% | -35.6% | -30.8% | -13.5% |
| Long Term Debt | 2 | 2 | 2 | 2 | | - | -12.4% | -11.4% | 4.6% |
Ratios
|
|---|
| Gross Margin | 51.9% | 51.2% | 51.8% | 51.3% | | 0.9% | 1.2% | 0.8% | -5.7% |
| Net Income Margin | -9.9% | 2.2% | 13.2% | 18.8% | | 20.9% | 23.6% | 13.2% | 7.6% |
Peers in Semiconductors
Below we provide O2Micro International Limited benchmarking against other companies in Semiconductors industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($SQNS) | - | 5.9% | -16.6% | -23.3% | 65.0% |
| MaxLinear, Inc ($MXL) | - | 8.4% | -8.4% | -17.6% | 50.9% |
| Advanced Micro Devices, Inc. ($AMD) | - | 21.6% | 23.3% | 4.0% | 45.0% |
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 11.0% | 4.9% | -3.2% | 1.0% |
|---|
| O2Micro International Limited ($OIIM) | - | 6.4% | 4.2% | -2.8% | 28.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
| Universal Display Corporation ($OLED) | 83.9% | 80.8% | 75.5% | 78.5% | 80.1% |
| Rambus, Inc. ($RMBS) | 80.1% | 79.9% | 76.8% | 77.1% | 75.0% |
| Analog Devices, Inc. ($ADI) | 65.1% | 59.9% | 68.3% | 67.0% | 65.9% |
| MoSys, Inc. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 47.2% | 48.6% | 50.2% | 50.4% | 49.2% |
|---|
| O2Micro International Limited ($OIIM) | 51.7% | 51.1% | 51.0% | 52.5% | 51.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 43.5% | 46.7% | 48.6% | 47.5% | 47.6% |
| Intel Corp ($INTC) | 35.2% | 41.7% | 45.7% | 45.9% | 46.7% |
| Broadcom Inc. ($AVGO) | 19.9% | 40.4% | 44.2% | 40.9% | 46.2% |
| Universal Display Corporation ($OLED) | 44.8% | 51.6% | 35.3% | 48.0% | 45.9% |
| Analog Devices, Inc. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (42 companies) | 9.2% | 10.7% | 9.8% | 13.6% | 17.3% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micron Technology, Inc. ($MU) | 46.9% | 23.3% | 29.2% | 41.8% | 38.4% |
| Sequans Communications S.A. ($SQNS) | 11.8% | 13.3% | 22.9% | 29.6% | 27.1% |
| Intel Corp ($INTC) | 16.2% | 18.8% | 21.4% | 22.5% | 18.6% |
| First Solar, Inc. ($FSLR) | 7.9% | 17.5% | 33.0% | 21.8% | 15.4% |
| Power Integrations, Inc. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (41 companies) | 3.7% | 4.7% | 4.4% | 3.8% | 3.7% |
|---|
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 34.9% | 43.1% | 47.5% | 39.7% | 38.2% |
| Applied Materials Inc ($AMAT) | 19.0% | 31.2% | 36.4% | 27.7% | 32.1% |
| Advanced Micro Devices, Inc. ($AMD) | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% |
| QUALCOMM Incorporated ($QCOM) | 15.8% | 5.7% | 2.2% | 38.0% | 28.1% |
| NVIDIA Corporation ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 3.0% | 3.8% | 5.3% |
|---|
| O2Micro International Limited ($OIIM) | -7.0% | -7.9% | -10.4% | -8.0% | 6.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SunPower Corporation ($SPWR) | - | - | - | - | 8.2x |
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.0x | 7.2x | 98.6x | - | 6.6x |
| Rambus, Inc. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (32 companies) | 0.2x | 0.4x | 0.3x | 0.5x | 0.3x |
|---|
