MEMSIC, Inc., a leading MEMS sensing solution provider, announced financial results for the first quarter ended March 31, 2010. MEMSIC also unveiled its first Digital Thermal Orientation Sensors (DTOS) product for high-volume mobile phone and consumer electronics applications
Revenues for the first quarter of 2010 were $7.3 million, a 10.6% increase from the first quarter of 2009. Net loss in the 2010 first quarter was $2.3 million, or ($0.10) per diluted share, compared to net income of $57,000, or $0.00 per diluted share, in the prior-year period. The company's 2010 results include revenue from the lines of business MEMSIC acquired from Crossbow Technology, Inc. on January 15, 2010, transaction costs related to the acquisition, and costs related to the addition of Crossbow engineering and sales staff. The 2010 results also include $0.4 million in stock-based compensation compared to $0.3 million in the 2009 quarter.
MEMSIC Chairman, President and CEO, Dr. Yang Zhao commented, "This quarter we already began seeing the benefits of our Crossbow acquisition, which has greatly diversified and enhanced MEMSIC's mix of products, applications and end-markets. This also contributed to the sevenfold increase in sales in the attractive industrial market. Sensor sales to the automotive market, another stable and attractive market, continued to be strong.”
"One of MEMSIC's fundamental strategies is to use our unique MEMS technology know-how to introduce new products that strengthen our competitive position in the dynamic sensor component market. To that end, yesterday we introduced a truly revolutionary product -- the world's first family of Digital Thermal Orientation Sensors (DTOS), which is essentially an accelerometer with the ability to detect full motion and acceleration,” continued Zhao.
“Built on the 8 inch 0.18um standard CMOS process with highly sophisticated on-chip mixed signal processing, DTOS is the first silicon-based accelerometer in the MEMS industry that can compete even at the price level of traditional mechanical switches while having a high level of functionality. We expect DTOS to be a disruptive product family for high-volume mobile phone applications and to expand MEMSIC's position in this growing market. In addition, this low-cost and advanced product also positions MEMSIC for a broader set of market applications in many consumer and industrial products, including toys and digital cameras. We intend to continuously introduce new products with improved functionalities in the DTOS family through 2010," said Zhao.
Dr. Zhao stated, "A second important facet of our strategy to drive sales and profitability is to offer more complex smart sensing solutions. Our acquisition of the Crossbow business lines and assets was a major step toward accomplishing this goal, and the integration process is proceeding well. Combining our team knowledge and talent in MEMS sensor component, system integration, IP and algorithms, we are developing the next generation smart multi-sensor systems to expand our product and market reach.
"A third essential element of our strategy is to use MEMSIC's low-cost manufacturing capabilities in China to lower the cost and increase the gross margin of our smart sensing solution products, as we are with our sensor components. Our manufacturing base in Wuxi will deliver its first wireless sensor network product this month, and we expect to complete the transfer of the entire manufacturing process for both the wireless and inertial system products within the next 12 -18 months."
"We continue to be excited by the many opportunities presented by our newly strengthened technology platforms, broadened product line, and more diverse customer base," Dr. Zhao concluded. We expect the benefits of our magnetic sensors, DTOS products and the transition of system solution product manufacturing to China to positively impact our financial results in the second half of 2010."
MEMSIC Inc., headquartered in Andover, Massachusetts, provides advanced semiconductor sensor and system solutions based on integrated micro-electromechanical systems (MEMS) technology and mixed signal circuit design. MEMSIC's unique and proprietary approach combines leading edge sensor technologies, such as magnetic sensors and accelerometers, with mixed signal processing circuitry to produce reliable, high quality, cost effective solutions for automotive, consumer and industrial markets. The company shares are listed on the NASDAQ Stock Exchange (NASDAQ: MEMS).
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