OIIM: O2Micro Misses Guidance Due to Supply Chain Issues

By Lisa Thompson

NASDAQ:OIIM

READ THE FULL OIIM RESEARCH REPORT

O2Micro OIIM is now saying Q4 revenues should now be approximately $24 million in Q4 primarily due to short term supply chain issues with one of the wafer suppliers supporting its Intelligent Lighting (TV backlighting) product lines. O2Micro had expected revenues between $25.5 million and $26.5 million or a midpoint of $26.0 million, which would have been growth of 12% year over year. At $24 million, that is reduced to growth of 3%. We believe this supplier could be in Xi'an, a city that is locked down. In December Micron and Samsung both warned that their sales could be disrupted as they source DRAM memory chips and flash nand chips there. We do not expect that these sales are lost by O2Micro, rather have slipped into 2022.

In the third quarter O2Micro was affected by plant shutdowns due to COVID from TV manufacturing customers in Malaysia and Viet Nam. These plants are now up and running. It was also hit by capacity constraints at assembly plants in China that had been affected by a lack of electricity. It had already given lower sequential guidance entering its seasonally soft fourth quarter which is typically impacted by a slow down in garden and power tool demand. The company continues to invest in capacity to meet this demand by adding testing capabilities and second and third source fabs.

We are reducing the 2021 estimate to $101 million with non GAAP ADSPS of $0.41. We leave 2022 estimates unchanged.

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