8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):   November 8, 2010

MEMSIC, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware	001-33813	04-3457049
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

One Tech Drive, Suite 325, Andover, MA 01810

 (Address of principal executive offices) (Zip Code)

One Tech Drive, Suite 325, Andover, MA 01810

 (Mailing Address)

(978) 738-0900

 (Registrant’s telephone number, including area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below).

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02     Results of Operations and Financial Condition

On November 8, 2010, we issued a press release announcing our financial results for the quarter ended September 30, 2010.  A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 9.01     Financial Statements and Exhibits

(d)   Exhibits

Exhibit No.	Description	Furnished with this Form 8-K	Incorporated by Reference
			Form	Filing Date	Exhibit No.
99.1	Press release dated November 8, 2010.	X

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

MEMSIC, INC.
By:	/s/ Patricia Niu
	Patricia Niu
	Chief Financial Officer

Date:  November 8, 2010

EX-99.1

Exhibit 99.1

MEMSIC Announces Third-Quarter 2010 Results

New Product Ramp-ups Contribute to Sales Growth

ANDOVER, Mass., November 8, 2010 – MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, today announced financial results for the third quarter ended September 30, 2010.

· Revenues totaled $10.8 million compared to $7.1 million in the third quarter of 2009.

· Gross margin was 37.8% compared to 41.3% in the 2009 quarter.  Gross margin in the 2010 quarter was negatively impacted by a $0.4 million sales credit granted to a customer for estimated engineering and screening costs incurred during 2010.  The credit reduced gross margin by 2.4 basis points.

· Operating expenses rose to $6.4 million from $3.1 million in the 2009 quarter, including an increase in R&D expense to $2.4 million from $1.2 million.

· Net loss in the 2010 third quarter was ($1.9) million, or ($0.08) per diluted share, compared to net income of $52,000, or $0.00 per diluted share, in the prior-year period.

· EBITDA in the 2010 third quarter was ($1.0) million compared to $0.4 million in the 2009 quarter.

MEMSIC Chairman, President and CEO, Dr. Yang Zhao commented, “We again surpassed the top end of our quarterly revenue guidance, with our magnetic sensor and new series of ultra-low-cost accelerometers contributing significantly to our growth in this quarter. We are pleased that the market for smartphones is picking up worldwide and that MEMSIC is benefiting from this trend through a ramp-up in sales to a major manufacturer of GPS-enabled mobile phones.

“In the near term, the continuous cost reduction of sensor products is helping us penetrate more cost-sensitive applications such as toys and games. In the long term, we expect continuous product development in integrated smart sensor and sensing systems to drive higher ASP and margin as well as revenue growth. With our Crossbow acquisition in January 2010, we significantly increased our R&D investment in next-generation multi-sensor and MCU integrated system products at both the IC level for the consumer and mobile market and the module level for the high-end industrial, automotive, and general aviation markets. Our next-generation product lines will naturally combine MEMSIC’s core competency in ultra-low-cost sensor product design and manufacturing with the core competency in multi-sensor system int egration we acquired from Crossbow. One example is the high-performance MEMS inertial systems we recently introduced, which offer the superior reliability of our advanced MEMS technology for integrated navigation systems and in stabilization and control applications.”

“The transition to China of manufacturing operations for the sensor system product lines we acquired is progressing as planned.  Manufacturing for all of the wireless sensing products has been transferred, and we will finish transferring our inertial navigation system and solution products by Q1 next year except for our FAA-certified product line, which takes longer due to the nature of FAA regulations.  We continue to expect cost savings through the transfer process and increased product performance and functionality through redesigning most of the product lines.”

The company’s third-quarter 2010 results include revenue from the products MEMSIC acquired from Crossbow Technology, Inc. in January 2010 and costs related to the addition of Crossbow engineering and sales staff.  The 2010 and the 2009 results include $0.4 million and $0.3 million, respectively, in stock-based compensation.

Outlook

For the fourth quarter of 2010, MEMSIC anticipates revenue in the range of $10.0 to $11.0 million.  Net loss, including stock-based compensation of $0.4 million, is expected to be in the range of ($0.08) to ($0.11) per share. Average diluted share count for the fourth quarter is estimated to be 24 million.

Conference Call

Management will hold a conference call and webcast at 10:00 a.m. EST on November 8, 2010 to review and discuss the Company's results.

What:	MEMSIC 3Q 2010 financial results conference call and webcast
When:	Monday, November 8, 2010
Time:	10:00 a.m. EST
Live Call:	(877) 291-1367, domestic
	(914) 495-8534, international
Replay:	(800) 642-1687 pass code 16895977, domestic
	(706) 645-9291, pass code 16895977, international
Webcast:	http://investor.memsic.com (live and replay)

About Non-GAAP Financial Information

Earnings before interest, taxes, depreciation and amortization, or 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 which 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 compara ble 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 shares are listed on the NASDAQ Stock Exchange (NASDAQ GM: MEMS).

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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.

Source:  MEMSIC, Inc.

Company Contact: Patricia Niu MEMSIC, Inc. Chief Financial Officer 978-738-0900   Investor Contact: Harriet Fried/ Jody Burfening Lippert Heilshorn & Associates (212) 838-3777 ir@memsic.com

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MEMSIC, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30,			December 31,
	2010			2009
ASSETS
Current assets:
Cash and cash equivalents	$	56,756,071		$	66,970,736
Restricted cash		2,614,515			863,439
Short-term investments		500,000			-
Accounts receivable, net of allowance for doubtful accounts of $6,441     as of September 30, 2010 and December 31, 2009, respectively		4,048,875			2,670,144
Inventories		6,896,596			4,988,611
Other assets		2,698,129			1,004,458
Total current assets		73,514,186			76,497,388
Property and equipment, net		21,922,331			14,591,828
Long-term investments		5,020,000			5,353,000
Goodwill		4,869,599			-
Intangible assets, net		12,113,093			988,270
Other assets		84,191			81,455
Total assets	$	117,523,400		$	97,511,941
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4,327,157		$	1,115,694
Accrued expenses		3,126,004			1,662,518
Advance research funding		2,614,515			863,439
Total current liabilities		10,067,676			3,641,651
Note payable to bank		17,930,000			-
Stockholders’ equity:
Common stock, $0.00001 par value; authorized, 45,000,000 shares; 23,805,363 and 23,793,113    shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively		238			238
Additional paid-in capital		99,233,128			98,112,408
Accumulated other comprehensive income		2,615,109			2,218,496
Accumulated deficit		(12,686,178	)		(6,460,852	)
MEMSIC, Inc. stockholders' equity		89,162,297			93,870,290
Noncontrolling interest related to joint venture in Japan		363,427			-
Total equity		89,525,724			93,870,290
Total liabilities and stockholders’ equity	$	117,523,400		$	97,511,941

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MEMSIC, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Net sales	$	10,844,719		$	7,067,583		$	27,212,338		$	22,759,693
Cost of goods sold		6,751,194			4,147,180			16,584,892			12,505,427
Gross profit		4,093,525			2,920,403			10,627,446			10,254,266
Operating expenses:
Research and development		2,377,649			1,210,197			6,386,394			4,088,923
Sales and marketing		1,376,893			502,829			3,557,223			1,622,890
General and administrative		2,212,399			1,342,290			6,525,484			4,115,447
Amortization expense		406,561			38,067			1,146,844			110,012
Total  operating expenses		6,373,502			3,093,383			17,615,945			9,937,272
Operating income (loss)		(2,279,977	)		(172,980	)		(6,988,499	)		316,994
Other income:
Interest and dividend income		99,026			205,322			319,803			665,171
Other, net		325,074			68,651			430,361			107,286
Total other income		424,100			273,973			750,164			772,457
Earnings (loss) before income taxes		(1,855,877	)		100,993			(6,238,335	)		1,089,451
Provision (benefit) for income taxes		36,392			48,927			(79,102	)		289,021
Net income (loss)		(1,892,269	)		52,066			(6,159,233	)		800,430
Less: net income attributable to noncontrolling interest		39,004			-			66,093			-
Net income (loss) attributable to MEMSIC, Inc.	$	(1,931,273	)	$	52,066		$	(6,225,326	)	$	800,430
Net income (loss) per common share:
Basic	$	(0.08	)	$	0.00		$	(0.26	)	$	0.03
Diluted	$	(0.08	)	$	0.00		$	(0.26	)	$	0.03
Weighted average shares outstanding used in calculating    net income (loss) per common share:
Basic		23,805,072			23,764,284			23,802,357			23,724,587
Diluted		23,805,072			24,102,339			23,802,357			23,981,367

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MEMSIC, Inc.

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

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2010			2009			2010			2009
Net income (loss)	$	(1,931,273	)	$	52,066		$	(6,225,326	)	$	800,430
Interest (income) expense, net		(99,026	)		(205,322	)		(319,802	)		(665,171	)
Income tax expense (benefit)		36,392			48,927			(79,102	)		289,021
Depreciation and amortization		1,002,616			493,769			2,822,667			1,518,353
EBITDA	$	(991,291	)	$	389,440		$	(3,801,563	)	$	1,942,633

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