MEMSIC Announces First-Quarter 2013 Results

  MEMSIC Announces First-Quarter 2013 Results

Business Wire

ANDOVER, Mass. -- May 13, 2013

MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today
announced financial results for the first quarter ended March 31, 2013.

  *Net sales totaled $11.4 million compared to $20.0 million in the 2012
    quarter.
  *Gross margin was 36.4% compared to 37.1% in the 2012 quarter.
  *Operating expenses totaled $6.8 million compared to $6.2 million in the
    2012 quarter.
  *GAAP net loss was $2.5 million, or $0.10 per diluted share, compared to
    net income of $1.2 million, or $0.05 per diluted share, in the 2012
    quarter.
  *EBITDA was ($1.3) million compared to $2.5 million in the 2012 quarter.

MEMSIC Chairman, President and CEO Dr. Yang Zhao commented, “Our results for
the quarter were within the guidance range we previously provided. During the
period, we made additional progress with our strategy to capitalize on the
large China mobile market. Our ongoing penetration of that market helped
mitigate the impact of reduced shipments to a large mobile customer. Our sales
to that customer peaked in the first quarter of 2012, affecting our
quarter-over-quarter comparisons. In addition, we remain focused on using
MEMSIC’s cutting-edge technology to develop high-performance products for the
industrial and automotive markets.”

In light of MEMSIC’s pending acquisition by IDG-Accel China Capital II, L.P.
and its affiliates, announced on April 23, 22013, MEMSIC will not conduct a
conference call to review its first-quarter 2013 financial results.

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)
                                        March 31,         December 31,
                                           2013                2012
                                                               
ASSETS
Current assets:
Cash and cash equivalents                  $ 34,008,973        $ 27,306,202
Restricted cash                              2,775,600           2,867,896
Short-term investments                       25,640,124          34,640,188
Accounts receivable, net of
allowance for doubtful accounts of
$8,334 and $18,774,
respectively, as of March 31, 2013           4,263,601           4,821,867
and December 31, 2012
Inventories                                  8,457,249           9,840,659
Other current assets                        2,568,587         2,285,923   
Total current assets                         77,714,134          81,762,735
                                                               
Property and equipment, net                  28,944,247          29,002,825
Long-term investments                        2,500,000           2,500,000
Intangible assets, net                       9,559,780           9,918,305
Other assets                                137,810           144,106     
Total assets                               $ 118,855,971      $ 123,327,971 
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                           $ 2,748,492         $ 3,778,672
Accrued expenses                             2,772,148           3,934,975
Advance research funding                     2,775,600           2,867,896
Current portion of note payable to          1,000,000         1,000,000   
bank
Total current liabilities                    9,296,240           11,581,543
                                                               
                                                               
Note payable to bank, net of current         16,430,000          16,430,000
portion
Building liability                           8,160,395           8,135,115
Other liabilities                           72,222            86,420      
Total other liabilities                      24,662,617          24,651,535
                                                               
Stockholders’ equity:
                                                               
Common stock, $0.00001 par value;
authorized, 45,000,000 shares;
24,246,886 and 24,219,685
shares issued and outstanding at
March 31, 2013 and December 31,              243                 242
2012, respectively
                                                               
Additional paid-in capital                   103,140,260         102,813,203
Accumulated other comprehensive              4,553,153           4,477,071
income
Accumulated deficit                         (23,359,991 )      (20,896,074 )
MEMSIC, Inc. stockholders' equity            84,333,665          86,394,442
                                                               
Non-controlling interest related to         563,449           700,451     
joint ventures
Total stockholders' equity                  84,897,114        87,094,893  
                                                               
Total liabilities and stockholders’        $ 118,855,971      $ 123,327,971 
equity



MEMSIC, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                          Three months ended March 31,
                                             2013             2012
                                                                
Net sales                                    $ 11,428,283       $ 20,017,053
Cost of goods sold                            7,269,658        12,599,954 
Gross profit                                   4,158,625          7,417,099
                                                                
Operating expenses:
Research and development                       1,945,372          1,703,159
Sales and marketing                            1,142,066          1,432,299
General and administrative                     2,943,390          2,236,071
Depreciation                                   326,170            438,941
Amortization                                  450,944          396,123    
Total operating expenses                      6,807,942        6,206,593  
                                                                
Operating (loss) income                        (2,649,317 )       1,210,506
                                                                
Other income:
Interest and dividend income                   33,035             107,774
Foreign exchange gain                          80,503             (32,263    )
Other, net                                    67,991           13,174     
Total other income                             181,529            88,685
                                                                
Loss before income taxes                       (2,467,788 )       1,299,191
Provision for income taxes                    30,307           68,583     
Net (loss) income                              (2,498,095 )       1,230,608
                                                                
Less: net (loss) income attributable          (34,178    )      30,104     
to noncontrolling interests
Net (loss) income attributable to            $ (2,463,917 )     $ 1,200,504  
MEMSIC, Inc.
                                                                
Net (loss) income per common share
attributable to MEMSIC, Inc.:
Basic                                        $ (0.10      )     $ 0.05       
Diluted                                      $ (0.10      )     $ 0.05       
                                                                
Weighted average shares outstanding
used in calculating
net (loss) income per common share:
Basic                                         24,168,301       23,846,864 
Diluted                                       24,168,301       24,344,799 


MEMSIC, Inc.
Reconciliation of Net Income (Loss) to Earnings Before Interest, Taxes and
Depreciation and Amortization (EBITDA) (Unaudited)


                                      Three months ended March 31,
                                         2013               2012
                                                             
Net income (loss)                        $  (2,463,917  )    $ 1,200,504
Interest (income) expense, net              (33,035     )      (107,774  )
Income tax expense                          30,307             68,583
Depreciation and amortization              1,180,264        1,308,152 
EBITDA                                   $  (1,286,381  )    $ 2,469,465 

Contact:

MEMSIC, Inc.
Patricia Niu, 978-738-0900
Chief Financial Officer
or
Investors:
LHA
Harriet Fried, 212-838-3777
ir@memsic.com