(OIIM) - O2Micro International Ltd - reported a record third-quarter posting an earnings surprise of 120%

Earnings estimates are moving in the right direction. 2006's loss estimate has been halved over the past 90 days to negative four cents per share, while 2007's numbers have increased 20% to 18 cents per share over the past month. OIIM's average broker rating has been steady at 2.43. Full Analysis O2Micro International Limited (OIIM) engages in the design, development, and marketing of integrated circuits for power management and security applications to customers in consumer electronics, computer, industrial, and communications markets. Its integrated circuit products use analog, digital, or mixed-signal designs that combine analog and digital circuits on a single chip. The company’s products include CCFL inverters, which convert direct current power to alternating current power required for backlighting of LCD screens; CardBus controllers, which provide a high speed connection between PC cards and the central processing unit of a computer; SmartCardBus controllers that combine a Smart Card Reader and a CardBus controller in one integrated circuit; and E-Guardian, which provide PC users to transact secure e-commerce transactions on the Internet. OIIM reported a record third-quarter in which it posted an earnings surprise of 120%. The company came in with earnings of a penny per share, six cents ahead of the nickel per share loss estimate. Third quarter revenue of $31.5 million was an increase of 12% from the preceding quarter and comparable quarter of the prior year. "O2Micro continues it's on going effort to increase shareholder value through the introduction of exciting innovative technologies and increasing the company's patent portfolio," said Sterling Du, Chairman and CEO of O2Micro." Mr. Du added, "We continue to build our base for future growth and long term profitability with our investment in O2Micro's Integrated Circuit (IC) test facility in China, close to customers and suppliers. In addition, we have continued the stock repurchase program. Since Q2, we have repurchased 1,157,049 ADSs on the open market.'' The company continues to invest in its future as third-quarter R&D expenditures were $7.8 million, an increase of 18% from the comparable quarter of the prior year. Smaller companies must devote a substantial percentage of revenues to research, and OIIM is certainly doing so. Earnings estimates are moving in the right direction. 2006's loss estimate has been halved over the past 90 days to negative four cents per share, while 2007's numbers have increased 20% to 18 cents per share over the past month. OIIM's average broker rating has been steady at 2.43. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home