MEMSIC Announces First-Quarter 2013 Results

MEMSIC Announces First-Quarter 2013 Results

ANDOVER, Mass.--(BUSINESS WIRE)-- 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 and December 31, 2012

4,263,601

4,821,867

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 bank

1,000,000

1,000,000

Total current liabilities

9,296,240

11,581,543

Note payable to bank, net of current portion

16,430,000

16,430,000

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, 2012, respectively

243

242

Additional paid-in capital

103,140,260

102,813,203

Accumulated other comprehensive income

4,553,153

4,477,071

Accumulated deficit

(23,359,991

)

(20,896,074

)

MEMSIC, Inc. stockholders' equity

84,333,665

86,394,442

Non-controlling interest related to joint ventures

563,449

700,451

Total stockholders' equity

84,897,114

87,094,893

Total liabilities and stockholders' equity

$

118,855,971

$

123,327,971

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 to noncontrolling interests

(34,178

)

30,104

Net (loss) income attributable to MEMSIC, Inc.

$

(2,463,917

)

$

1,200,504

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



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

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS:

The article MEMSIC Announces First-Quarter 2013 Results originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.