MEMSIC Announces Second-Quarter 2013 Results Business Wire ANDOVER, Mass. -- August 8, 2013 MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today announced financial results for the second quarter ended June 30, 2013. *Net sales totaled $13.2 million compared to $14.4 million in the 2012 quarter. *Gross margin was 37.6% compared to 40.1% in the 2012 quarter. *Operating expenses, including $1.7 million legal and other expenses related to MEMSIC’s pending acquisition, totaled $7.5 million compared to $6.2 million in the 2012 quarter. *GAAP net loss was $2.3 million, or $0.09 per diluted share, compared to a net loss of $0.5 million, or $0.02 per diluted share, in the 2012 quarter. *EBITDA was ($1.2) million compared to $0.7 million in the 2012 quarter. MEMSIC Chairman, President and CEO Dr. Yang Zhao commented, “In this year’s second quarter, growing revenue from shipments to the China mobile market helped alleviate the impact of reduced sales to a large mobile customer. We are pleased with the progress we are making in penetrating the China mobile market. The number of units shipped that related to mobile applications increased more than 80% during the period. “In June 2013 we unveiled our MMC246xMT Two-Axis Magnetic Sensor, which offers top performance at the lowest power consumption for a two-axis magnetic sensor. The MMC246xMT is well suited for consumer, industrial and automotive applications.” On April 23, 2013, MEMSIC announced it had agreed to be acquired by IDG-Accel China Capital II, L.P. and its affiliates. The company continues to expect that transaction to close in the third quarter of 2013. 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) June 30, December 31, 2013 2012 ASSETS Current assets: Cash and cash equivalents $ 38,583,630 $ 27,306,202 Restricted cash 2,743,062 2,867,896 Short-term investments 20,000,000 34,640,188 Accounts receivable, net of allowance for doubtful accounts of $8,356 and $18,774, respectively, as of June 30, 2013 and 4,472,242 4,821,867 December 31, 2012 Inventories 8,619,887 9,840,659 Other current assets 2,078,356 2,285,923 Total current assets 76,497,177 81,762,735 Property and equipment, net 30,980,960 29,002,825 Long-term investments 2,500,000 2,500,000 Intangible assets, net 9,413,499 9,918,305 Other assets 137,182 144,106 Total assets $ 119,528,818 $ 123,327,971 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,754,949 $ 3,778,672 Accrued expenses 2,913,365 3,934,975 Advance research funding 2,743,062 2,867,896 Current portion of note payable to 2,500,000 1,000,000 bank Total current liabilities 13,911,376 11,581,543 Note payable to bank, net of current 13,930,000 16,430,000 portion Building liability 8,257,988 8,135,115 Other liabilities 100,237 86,420 Total other liabilities 22,288,225 24,651,535 Stockholders’ equity: Common stock, $0.00001 par value; authorized, 45,000,000 shares; 24,312,704 and 24,219,685 shares issued and outstanding at June 30, 2013 and December 31, 2012, 243 242 respectively Additional paid-in capital 103,537,903 102,813,203 Accumulated other comprehensive income 4,898,004 4,477,071 Accumulated deficit (25,636,990 ) (20,896,074 ) MEMSIC, Inc. stockholders' equity 82,799,160 86,394,442 Non-controlling interest related to 530,057 700,451 joint ventures Total stockholders' equity 83,329,217 87,094,893 Total liabilities and stockholders’ $ 119,528,818 $ 123,327,971 equity MEMSIC, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended June 30, Six months ended June 30, 2013 2012 2013 2012 Net sales $ 13,179,094 $ 14,415,237 $ 24,607,377 $ 34,432,290 Cost of goods 8,225,181 8,630,850 15,494,839 21,230,804 sold Gross profit 4,953,913 5,784,387 9,112,538 13,201,486 Operating expenses: Research and 1,917,807 1,769,201 3,863,179 3,472,360 development Sales and 872,237 1,228,408 2,014,303 2,660,707 marketing General and 4,075,952 2,399,923 7,019,341 4,635,995 administrative Depreciation 342,644 378,354 668,815 817,295 Amortization 307,079 413,886 758,023 810,008 Total operating 7,515,719 6,189,772 14,323,661 12,396,365 expenses Operating (2,561,806 ) (405,385 ) (5,211,123 ) 805,121 (loss) income Other income: Interest and dividend 7,580 125,259 40,615 233,034 income Foreign 237,559 (193,190 ) 318,062 (225,453 ) exchange gain Other, net 12,374 25,468 80,365 38,641 Total other 257,513 (42,463 ) 439,042 46,222 income Loss before (2,304,293 ) (447,848 ) (4,772,081 ) 851,343 income taxes Provision for 6,098 29,355 36,405 97,938 income taxes Net (loss) (2,310,391 ) (477,203 ) (4,808,486 ) 753,405 income Less: net (loss) income attributable (33,393 ) (15,789 ) (67,570 ) 14,315 to noncontrolling interests Net (loss) income attributable $ (2,276,998 ) $ (461,414 ) $ (4,740,916 ) $ 739,090 to MEMSIC, Inc. Net (loss) income per common share attributable to MEMSIC, Inc.: Basic $ (0.09 ) $ (0.02 ) $ (0.20 ) $ 0.03 Diluted $ (0.09 ) $ (0.02 ) $ (0.20 ) $ 0.03 Weighted average shares outstanding used in calculating net (loss) income per common share: Basic 24,236,445 23,986,332 24,215,415 23,919,650 Diluted 24,236,445 23,986,332 24,215,415 24,404,777 MEMSIC, Inc. Reconciliation of Net (Loss) Income to Earnings Before Interest, Taxes and Depreciation and Amortization (EBITDA) (Unaudited) Three months ended June 30, Six months ended June 30, 2013 2012 2013 2012 Net (loss) $ (2,276,998 ) $ (461,414 ) $ (4,740,916 ) $ 739,090 income Interest (income) (7,580 ) (125,259 ) (40,615 ) (233,034 ) expense, net Income tax 6,098 29,355 36,405 97,938 expense Depreciation and 1,044,933 1,305,595 2,225,197 2,613,747 amortization EBITDA $ (1,233,547 ) $ 748,277 $ (2,519,929 ) $ 3,217,741 Contact: Company: MEMSIC, Inc. Patricia Niu, 978-738-0900 Chief Financial Officer or Investors: LHA Harriet Fried, 212-838-3777 firstname.lastname@example.org
MEMSIC Announces Second-Quarter 2013 Results
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