Delaware
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001-33813
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04-3457049
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification Number)
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ITEM 2.02
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Results of Operations and Financial Condition
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Exhibit
No.
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Description
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Furnished with
this Form 8-K
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Incorporated by Reference
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||
Form
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Filing Date
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Exhibit No.
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|||
99.1
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Press release dated May 10, 2011.
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X
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MEMSIC, INC.
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By: | /s/ Patricia Niu | ||
Patricia Niu | |||
Chief Financial Officer | |||
● | Revenues rose to $13.0 million from $7.3 million in the first quarter of 2010. |
● | Gross margin was 38.1% compared to 39.1% in the 2010 quarter. |
● | Operating expenses, including R&D expense of $2.3 million, totaled $6.4 million compared to $5.4 million in the 2010 quarter. |
● | GAAP net loss in the 2011 first quarter was $1.3 million, or $0.06 per diluted share, compared to net loss of $2.3 million, or $0.10 per diluted share, in the prior-year period. This includes $0.4 million in stock-based compensation in both the 2011 and 2010 periods. |
● | EBITDA in the 2011 first quarter was ($0.2) million, compared to ($1.7) million in the 2010 period. |
Recent Highlights | |
● | MEMSIC recently introduced a new magnetic sensor that features 2mm x 2mm x 1mm in size and is optimized for smartphone, tablet PC, gaming and other high volume consumer electronic applications. The new product’s smaller size and cost, combined with MEMSIC’s manufacturing capacity in China, are major competitive advantages for the company. Mass production of the new mag sensor is expected in the third quarter of 2011. |
● | MEMSIC also introduced LOTUS, its next-generation mote platform, enabling higher performance, low power consumption and competitive pricing. The introduction reflects MEMSIC’s mission of delivering innovative wireless sensor network products and solutions to enable its customers’ growth. |
Outlook | |
● | Revenue is expected to be between $13.0 million and $13.5 million for the second quarter of 2011. |
● | GAAP net loss, including stock-based compensation of $0.4 million, is expected to be in the range of $0.05 to $0.06 per share for the second quarter of 2011. |
● | Average diluted share count for the 2011 second quarter is estimated to be approximately 24 million. |
Conference Call
Management will hold a conference call and webcast at 10:00 a.m. EDT on Tuesday, May 10, 2011 to review and discuss the Company's results.
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What:
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MEMSIC 1Q 2011 financial results conference call and webcast
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When:
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Tuesday, May 10, 2011
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Time:
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10:00 a.m. EDT
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Live Call:
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(877) 291-1367, domestic
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(914) 495-8534, international
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Replay:
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(800) 642-1687, pass code 62612724 domestic
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(706) 645-9291, pass code 62612724, international
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Webcast:
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http://investor.memsic.com (live and replay)
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Company Contact:
Patricia Niu
MEMSIC, Inc.
Chief Financial Officer
978-738-0900
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Investor Contact:
Harriet Fried/ Jody Burfening
Lippert Heilshorn & Associates
(212) 838-3777
ir@memsic.com
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MEMSIC, Inc.
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||||||||
CONSOLIDATED BALANCE SHEETS
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||||||||
(Unaudited)
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||||||||
March 31,
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December 31,
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|||||||
2011
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2010
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|||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 51,272,253 | $ | 55,694,205 | ||||
Restricted cash
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2,442,263 | 2,928,933 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $6,441
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5,446,620 | 3,664,444 | ||||||
Inventories
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10,051,639 | 8,923,127 | ||||||
Other assets
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3,176,061 | 2,537,445 | ||||||
Total current assets
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72,388,836 | 73,748,154 | ||||||
Property and equipment, net
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22,050,619 | 22,015,502 | ||||||
Long-term investments
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4,820,000 | 5,020,000 | ||||||
Goodwill
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4,948,646 | 4,919,513 | ||||||
Intangible assets, net
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11,648,603 | 11,894,328 | ||||||
Other assets
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48,598 | 67,599 | ||||||
Total assets
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$ | 115,905,302 | $ | 117,665,096 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 4,824,326 | $ | 4,563,420 | ||||
Accrued expenses
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2,176,015 | 2,969,839 | ||||||
Advance research funding
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2,442,263 | 2,928,933 | ||||||
Total current liabilities
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9,442,604 | 10,462,192 | ||||||
Note payable to bank
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17,930,000 | 17,930,000 | ||||||
Deferred rent
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130,604 | 90,036 | ||||||
Total other liabilities
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18,060,604 | 18,020,036 | ||||||
Stockholders’ equity:
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||||||||
Common stock, $0.00001 par value; authorized, 45,000,000 shares; 23,813,613 and 23,810,613 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively
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238 | 238 | ||||||
Additional paid-in capital
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100,022,023 | 99,615,378 | ||||||
Accumulated other comprehensive income
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3,216,075 | 3,029,372 | ||||||
Accumulated deficit
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(15,151,744 | ) | (13,823,565 | ) | ||||
MEMSIC, Inc. stockholders' equity
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88,086,592 | 88,821,423 | ||||||
Noncontrolling interest related to joint venture in Japan
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315,502 | 361,445 | ||||||
Total stockholders' equity
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88,402,094 | 89,182,868 | ||||||
Total liabilities and stockholders’ equity
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$ | 115,905,302 | $ | 117,665,096 |
MEMSIC, Inc.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||
(Unaudited)
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||||||||
Three Months Ended March 31,
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||||||||
2011
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2010
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|||||||
Net sales
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$ | 12,954,920 | $ | 7,271,993 | ||||
Cost of goods sold
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8,013,199 | 4,426,499 | ||||||
Gross profit
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4,941,721 | 2,845,494 | ||||||
Operating expenses:
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Research and development
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2,297,836 | 1,973,657 | ||||||
Sales and marketing
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1,464,746 | 1,071,479 | ||||||
General and administrative
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2,254,260 | 1,985,047 | ||||||
Amortization expense
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405,935 | 338,761 | ||||||
Total operating expenses
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6,422,777 | 5,368,944 | ||||||
Operating loss
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(1,481,056 | ) | (2,523,450 | ) | ||||
Other income:
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||||||||
Interest and dividend income
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83,490 | 116,664 | ||||||
Foreign exchange gain
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190,676 | 4,021 | ||||||
Other, net
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68,576 | 13,509 | ||||||
Total other income
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342,742 | 134,194 | ||||||
Earnings (loss) before income taxes
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(1,138,314 | ) | (2,389,256 | ) | ||||
Provision for (benefit from) income taxes
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117,394 | (116,435 | ) | |||||
Net loss
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(1,255,708 | ) | (2,272,821 | ) | ||||
Less: net income attributable to noncontrolling interest
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72,471 | 47,141 | ||||||
Net loss attributable to MEMSIC, Inc.
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$ | (1,328,179 | ) | $ | (2,319,962 | ) | ||
Net loss per common share to MEMSIC, Inc.:
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||||||||
Basic
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$ | (0.06 | ) | $ | (0.10 | ) | ||
Diluted
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$ | (0.06 | ) | $ | (0.10 | ) | ||
Weighted average shares outstanding used in calculating
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||||||||
net loss per common share:
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||||||||
Basic
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23,811,058 | 23,797,008 | ||||||
Diluted
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23,811,058 | 23,797,008 |
MEMSIC, Inc.
|
||||||||
Reconciliation of Net Loss to Earnings Before Interest, Taxes and Depreciation
and Amortization (EBITDA) (Unaudited)
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||||||||
Three months ended March 31,
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||||||||
2011
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2010
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|||||||
Net income (loss)
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$ | (1,328,179 | ) | $ | (2,319,962 | ) | ||
Interest (income) expense, net
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(83,490 | ) | (116,664 | ) | ||||
Income tax expense (benefit)
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117,394 | (116,435 | ) | |||||
Depreciation and amortization
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1,069,320 | 879,231 | ||||||
EBITDA
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$ | (224,955 | ) | $ | (1,673,830 | ) |