MEMSIC begins production shipping of electronic compass to major cell phone manufacturer and shipping of ultra-low-cost accelerometer product.
MEMSIC, Inc. (NasdaqGM: MEMS), a leading MEMS sensing solution provider, announced financial results for the second quarter ended June 30, 2010.
* Revenues totaled $9.1 million compared to $9.1 million in the second quarter of 2009.
* Gross margin was 40.6% compared to 46.1% in the 2009 quarter.
* Operating expenses rose to $5.9 million from $3.7 million in the 2009 quarter, including an increase in R&D expense to $2.0 million from $1.7 million.
* Net loss in the 2010 second quarter was ($2.0) million, or ($0.08) per diluted share, compared to net income of $0.7 million, or $0.03 per diluted share, in the prior-year period.
The company's second-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 $0.3 million and $0.4 million, respectively, in stock-based compensation.
MEMSIC Chairman, President and CEO, Dr. Yang Zhao commented, "We slightly exceeded the top end of our revenue guidance for the quarter as new revenues from industrial markets attributable to our Crossbow acquisition and strong growth in the automotive market offset a substantial decline in the China mobile phone market."
"During the quarter, we made good progress in our business plan for 2010 to transform ourselves into a multiple-product company serving a diverse set of markets. First, we began production shipping of our electronic compass to a major electronics manufacturer for multiple GPS-enabled mobile phones. While we expect weakness in the China mobile phone market to continue in the near term, the adoption of GPS-enabled mobile phones is accelerating worldwide, and our market-leading eCompass product, which is ready for high-volume production, positions MEMSIC well for future account wins."
"Second, we began shipping of our whole new series of ultra-low-cost, accelerometer product for cost-sensitive applications like mobile phones, toys and games, digital cameras, flat panel TV's, remote controls, appliances and other consumer electronics products." Over time, we expect this revolutionary product to enhance our position in the China mobile phone market and, at the same time, open many new markets for MEMSIC.
"Third, we are delighted to be collaborating with IBM and to supply the hardware platform for its new software, Mote Runner. This advanced hardware and software combination makes it easy to gather sensory information such as temperature, movement or light and communicate that data across a network of wireless sensors."
Dr. Zhao added, "As we push through our transition phase from a single-product to a more diversified multiple-product company, MEMSIC has put many of the ingredients in place that are necessary to fuel our future success. We have a unique technology and business model different from our peers in industry. We have strong, vertically integrated technology platform product lines that range from MEMS sensors to sensing integration solutions. This versatility allows us to develop next-generation smart sensing systems that integrate multiple sensors with on-chip MCU and sophisticated algorithms for the consumer, mobile phone and industrial markets. Our strong R&D investment, which reflects our key strategy of broadening our product lines, will leverage our many strengths and help us drive future growth."