MEMSIC Announces Third-Quarter 2012 Results Business Wire ANDOVER, Mass. -- November 05, 2012 MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today announced financial results for the third quarter ended September 30, 2012. *Net sales totaled $15.2 million compared to $18.4 million in the 2011 quarter. *Gross margin was 35.0% compared to 33.8% in the 2011 quarter. *Operating expenses totaled $5.7 million compared to $7.3 million in the 2011 quarter. *GAAP net loss was $0.3 million, or $0.01 per diluted share, compared to $0.4 million, or $0.02 per diluted share, in the 2011 quarter. *EBITDA was $952,000 compared to $915,000 in the 2011 quarter. For the nine months ended September 30, 2012, net sales totaled $49.6 million compared to $46.7 million in the first nine months of 2011. Net income totaled $0.4 million, or $0.02 per diluted share, compared to a net loss of $2.8 million, or $0.12 per diluted share in the prior-year period. EBITDA totaled $4.2 million compared to $0.6 million in the 2011 period. MEMSIC Chairman, President and CEO Dr. Yang Zhao commented, “We continued to grow sales in the consumer market from high-end digital camera applications and from new consumer applications such as tablet computers. We also benefited from design wins at multiple mobile customers in fast-growing smart phone applications in the China market. The increased sales in these areas helped ameliorate the impact of reduced shipments to a large mobile customer stemming from recent changes in MEMSIC’s strategy and business focus. “In the coming months, building on our superior magnetic sensor product, our large presence in the China market and the strong, local technical support we offer, we expect to continue to leverage the growth in the China mobile market. We are also moving forward with our launch of the gas flow sensor module, aimed at the residential and industrial meter markets, that we introduced in June 2012. In addition, we are developing high-performance sensor products for the industrial and automotive markets, as well as high-performance but cost-effective IMU product for industrial applications. Although expanding into new automotive and industrial applications will take time, we are optimistic that our advanced technology will lead the market and, in the long term, enhance the stability and profitability of our Company.” Outlook *Revenue is expected to be between $14 million and $16 million for the fourth quarter of 2012. *GAAP net loss is expected to be in the range of $0.02 to $0.04 per share for the fourth quarter of 2012. *Average diluted share count for the 2012 fourth quarter is estimated to be approximately 24.5 million. Conference Call Management will hold a conference call and webcast at 5:00 p.m. EST on Monday, November 5, 2012 to review and discuss the Company's results. What: MEMSIC 3Q 2012 financial results conference call and webcast When: Monday, November 5, 2012 Time: 5:00 p.m. EST Live Call: (877) 291-1367, domestic (914) 495-8534, international Replay: (855) 859-2056, pass code 46225789, domestic (404) 537-3406, pass code 46225789, international Webcast: 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. About 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's unique 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) September 30, December 31, 2012 2011 ASSETS Current assets: Cash and cash equivalents $ 25,347,187 $ 51,914,128 Restricted cash 2,706,830 3,791,189 Short-term investments 33,640,012 6,814,728 Accounts receivable, net of allowance for doubtful accounts of $41,815 and $6,441, respectively, as of September 30, 2012 and 6,833,143 6,068,904 December 31, 2011 Inventories 9,775,070 11,459,153 Other current assets 2,751,586 2,050,787 Total current assets 81,053,828 82,098,889 Property and equipment, net 29,488,751 30,998,489 Long-term investments 2,600,000 2,600,000 Goodwill 612,578 606,976 Intangible assets, net 10,133,406 11,091,532 Other assets 141,610 136,633 Total assets $ 124,030,173 $ 127,532,519 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,332,101 $ 8,439,605 Accrued expenses 3,199,371 2,630,966 Advance research funding 2,706,830 3,791,189 Current portion of note payable to bank 1,000,000 500,000 Total current liabilities 11,238,302 15,361,760 Note payable to bank, net of current 16,430,000 17,430,000 portion Building liability 8,064,310 8,161,288 Other liabilities 97,105 124,180 Total other liabilities 24,591,415 25,715,468 Stockholders’ equity: Common stock, $0.00001 par value; authorized, 45,000,000 shares; 24,199,585 and 23,983,813 shares issued and outstanding at September 30, 2012 and December 31, 2011, 242 240 respectively Additional paid-in capital 102,556,701 101,266,272 Accumulated other comprehensive income 4,423,913 4,363,930 Accumulated deficit (19,487,200 ) (19,908,135 ) MEMSIC, Inc. stockholders' equity 87,493,656 85,722,307 Non-controlling interest related to joint 706,800 732,984 ventures Total stockholders' equity 88,200,456 86,455,291 Total liabilities and stockholders’ equity $ 124,030,173 $ 127,532,519 MEMSIC, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended September Nine months ended September 30, 30, 2012 2011 2012 2011 Net sales $ 15,188,705 $ 18,357,300 $ 49,620,995 $ 46,684,854 Cost of goods 9,878,008 12,155,533 31,108,812 30,543,197 sold Gross profit 5,310,697 6,201,767 18,512,183 16,141,657 Operating expenses: Research and 1,440,336 2,200,240 4,912,696 6,610,213 development Sales and 1,276,933 1,881,240 3,937,640 4,875,893 marketing General and 2,332,925 2,397,618 6,968,920 6,374,497 administrative Depreciation 358,277 401,815 1,175,572 1,199,166 Amortization 338,879 403,835 1,148,887 1,212,001 Total operating 5,747,350 7,284,748 18,143,715 20,271,770 expenses Operating (436,653 ) (1,082,981 ) 368,468 (4,130,113 ) (loss) income Other income: Interest and 4,378 153,227 237,412 335,082 dividend income Foreign exchange gain 209,628 328,639 (15,825 ) 848,114 (loss) Other, net 19,583 323,587 58,225 406,007 Total other 233,589 805,453 279,812 1,589,203 income (Loss) profit before income (203,064 ) (277,528 ) 648,280 (2,540,910 ) taxes Provision for 96,462 58,343 194,400 172,653 income taxes Net (loss) (299,526 ) (335,871 ) 453,880 (2,713,563 ) income Less: net income attributable to 18,629 32,895 32,945 91,685 non-controlling interests Net (loss) income $ (318,155 ) $ (368,766 ) $ 420,935 $ (2,805,248 ) attributable to MEMSIC, Inc. Net (loss) income per common share attributable to MEMSIC, Inc.: Basic $ (0.01 ) $ (0.02 ) $ 0.02 $ (0.12 ) Diluted $ (0.01 ) $ (0.02 ) $ 0.02 $ (0.12 ) Weighted average shares outstanding used in calculating net (loss) income per common share: Basic 24,024,725 23,825,134 23,985,453 23,822,587 Diluted 24,024,725 23,825,134 24,414,565 23,822,587 MEMSIC, Inc. Reconciliation of Net (Loss) Income to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) (Unaudited) Three months ended September Nine months ended September 30, 30, 2012 2011 2012 2011 Net (loss) $ (318,155 ) $ (368,766 ) $ 420,935 $ (2,805,248 ) income Interest (income) (4,378 ) (153,227 ) (237,412 ) (335,082 ) expense, net Income tax 96,462 58,343 194,400 172,653 expense Depreciation and 1,177,613 1,378,401 3,791,360 3,533,403 amortization EBITDA $ 951,542 $ 914,751 $ 4,169,283 $ 565,726 Contact: Company: MEMSIC, Inc. Patricia Niu, 978-738-0900 Chief Financial Officer or Investors: LHA Harriet Fried / Jody Burfening 212-838-3777 email@example.com
MEMSIC Announces Third-Quarter 2012 Results
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