O2 Micro Cuts Q1 Revenue Guidance

(RTTNews) - O2 MicroInternational Ltd. (OIIM), a provider of high-performance integrated circuits and solutions, lowered its revenue guidance for the first quarter of 2014.

For the first quarter, the company expects revenue to be in the range of $15.5 million - $16.5 million, versus the previous $17.8 million - $19.1 million range. On average, 3 analysts polled by Thomson-Reuters expect the company to earn revenue of $18.10 million for the quarter.

Gross margin for the first quarter is expected to lie between approximately 49 percent and 51 percent.

The company said, reduction in anticipated revenue for the first quarter is primarily the result of weakness in TV and notebook markets, as well as delays in mass production of several major general lighting programs.

Being disappointed with the soft demand in its first quarter business, O2Micro's chief executive said, "This is a result of weaker than anticipated seasonal demand in our back lighting and power management business units and production delays in certain applications of LED general lighting products. Despite weaker than anticipated first-quarter revenue, we still expect to grow overall revenue year-over-year from 2013 levels."

In the second quarter, the company expects to overcome the delays and looks forward for the rapid growth of its general lighting and other power management businesses.