Since 1995, O2Micro has been developing and marketing innovative power management and e-commerce components for the computer, consumer, industrial, and communications markets. Its products include offerings to provide intelligent lighting, battery management, and power management. The company has a vast amount of intellectual property, maintaining an extensive portfolio with 16,692 patent claims granted, and over 18,000 more pending.
O2Micro International recently reported on its operating results for the second quarter of 2011. Revenue topped $32 million during the three month period ending June 30, 2011, up 5% compared to the first quarter of 2011. Tech companies often consider sequential revenue growth to be more important than the year-over-year approach used by other companies.
Net income was $3.0 million in the second quarter of 2011, or $0.09 per share. This was very close to the results seen in the first quarter of the year when income totaled $3.1 million, which was also $0.09 per share.
The company reported that revenue declined for the first six months of 2011 by 14% compared to the same six months in 2010. Net income also declined year-over-year, with earnings per share of $0.18 in the first six months of 2011 compared to earnings of $0.31 per share in the first half of 2010.
Recently, the stock of the company was priced near $4.70 a share. This was close to the amount of cash the company was holding at the end the second quarter of 2011. It reported cash holdings of $114.9 million, or $3.43 a share. Book value was reported at $5.47 per share.
Commenting on the quarter, Sterling Du, Chairman and CEO of O2Micro International, provided additional insight into the company’s technology and future prospects, “We are encouraged by the uptake of our DC/DC and charger products and the increasing LED driver penetration into general lighting applications at a time when the market for our LCD driver products remains soft. This progress is important to our long-term success in order to extend our business beyond our core backlighting market.”
The intellectual property of O2Micro International may have additional value that might not be fully reflected in the stock price. Google recently purchased Motorola Mobility for $12.5 billion, largely because of the patents that Motorola Mobility holds. Technology at this stage is difficult to value but given the quantity of patents and claims that O2Micro International has, it seems like the stock may not be factoring a potential big winner among the more than 30,000 holdings.