Battery Business Drives O2Micro's Q3 Beat, Issues Q4 Outlook Below Consensus

O2Micro International Ltd OIIM reported third-quarter FY21 revenue growth of 22.6% year-on-year to $27.3 million, beating the consensus of $26.93 million.
The gross margin was resilient at 52%. The operating margin contracted 70 bps to 13.3%.
Earnings per ADS of $0.12 beat the consensus of $0.10.
O2Micro held $50.7 million in cash and equivalents.
Outlook: The company sees Q4 revenue of $25.5 million - $26.5 million, below the consensus of $26.6 million.
"O2Micro's escalating growth continued through the third quarter with revenue increasing 4.1% from the prior quarter and 22.6% over the same quarter in 2020. Our battery business grew strongly despite the dynamic market and supply chain situation," said Sterling Du, O2Micro's Chairman, and CEO.
Price Action: OIIM shares traded lower by 1.13% at $6.1 in the premarket session on the last check Friday.