O2Micro Shares Drop On 16% Revenue Decline In Q2, Dismal Q3 Guidance

O2Micro International Limited OIIM reported a second-quarter FY22 revenue decline of 15.8% year-on-year to $22.1 million, beating the consensus of $21.63 million.
The gross margin expanded by 110 bps to 52.6%. The operating margin contracted 1,040 bps to 2.1%.
Earnings per ADS were $0.02, in line with the consensus.
O2Micro held $49.5 million in cash and equivalents.
"O2Micro's increasing active design wins with new technologies show strong acceptance by our customers in both LCD backlighting and battery products. It shows the long-term growth drivers continue its momentum despite current inventory correction headwind. The growth drivers include vacuum cleaners, E Bikes, televisions, and high-end monitors, power tools, and energy storage system," said Sterling Du, O2Micro's Chair and CEO.
Outlook: O2Micro sees Q3 revenue of $17 million - $19 million, below the consensus of $26.23 million.
Price Action: OIIM shares traded lower by 5% at $3.61 in the premarket on the last check Friday.