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Home» Commentary » MEMSIC, Inc. (Nasdaq: MEMS): Market Overreaction

MEMSIC, Inc. (Nasdaq: MEMS): Market Overreaction

Posted on May 9, 2012 by PennyStockHaven in Commentary, Stock Market News - No Comments

MEMSIC, Inc. (Nasdaq: MEMS) announced financial results for the first quarter ended March 31, 2012:

  • Revenues rose to $20.0 million from $13.0 million in the 2011 quarter. Total shipments of our sensor products grew to 32.1 million units from 12.6 million units in the prior-year period.
  • Gross margin was 37.1% compared to 38.1% in the 2011 quarter.
  • Operating expenses totaled $6.2 million compared to $6.4 million in the 2011 quarter.
  • GAAP net income was $1.2 million, or $0.05 per diluted share, compared to a net loss of $1.3 million, or $0.06 per diluted share, in the 2011 quarter.
  • EBITDA was $2.5 million, compared to ($0.2) million in the 2011 quarter.

MEMS stock plunged for 37% due to the lower revenue expectations for Q2 2012:

  • Revenue is expected to be between $14 million and $16 million for the second quarter of 2012.
  • GAAP net loss is expected to be in the range of $0.04 to $0.06 per share for the second quarter of 2012.
  • Average diluted share count for the 2012 second quarter is estimated to be approximately 24.5 million.

Dr. Yang Zhao, MEMSIS Chairman, President and CEO, commented:

Due to a significant drop in expected volume in Q2 over Q1 in the smartphone models we were designed into with a large customer, we expect MEMSIC’s Q2 2012 revenues to be flat compared to last year’s period. Nonetheless, we remain optimistic about our prospects for longer-term design-win expansion into more smartphone models and for revenue diversification into additional customers and regions. As the market for magnetic sensors is continuously growing towards one billion units per year, we are confident that this short-term reduction in volume will not slow down our product market entry and revenue diversification and that MEMSIC, as a major market player in magnetic products, will resume growth in the coming quarters.

Market is definitely overreacted on the MEMS finacial results. Trading at share/price below cash/share value is temporarily and will be corrected in the upcoming sessions.

MEMSIC Inc. announced today the availability of the latest member of its AMR based Magnetic Sensor family, the 3-Axis ultra-small MMC3316xMT. It provides the industry’s highest accuracy performance, lowest noise and low power consumption combined with enhanced sensing range and exceptionally small package, and addresses the ever-increasing demands of mobile applications.

Dr. Zhao noted:

We expect that this highly integrated and full functioning device to provide our customers with a highly differentiated product offering while simultaneously saving them valuable board space and lowering manufacturing costs. We expect the product to strengthen MEMSIC’s position in the worldwide mobile e-compass market as well as offer us opportunities to expand through consumer, industrial and automotive applications.

penny markets MEMS logoMEMSIC Inc.
One Tech Drive
Suite 325
Andover, MA 01810
Tel: 978-738-0900
Fax: 978-738-0196
http://www.memsic.com/

MEMSIC, Inc. provides semiconductor sensor and system solutions based on integrated micro electro-mechanical systems (MEMS) technology and mixed signal circuit design. It offers sensor products, principally accelerometers. The company?s sensors are used for motion, direction, and pressure sensing applications; and accelerometer products are used to measure tilt, shock, vibration, and acceleration, as well as in various applications, such as mobile phones, automotive safety systems, video projectors, global positioning systems, video gaming systems, interactive toys, inclination sensing, earthquake detection, cardiac pacemakers, and image projectors.

MEMS, MEMSIS, Nasdaq penny stock

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