Lisa Thompson
Growth at reasonable price, research analyst, tech, small-cap

The Long Case For O2Micro International Limited

Elevator Pitch

Activist investors are trying to extract value from O2Micro (NASDAQ:OIIM), fabless semiconductor company that is worth more dead than alive. It trades at a negative $18 million enterprise value not including valuable real estate and investments. While revenues are declining and the company burns through almost $2 million a quarter, its $52 million in cash could see it through until either the company is turned around or it is sold. Its poison pill structure as a Cayman Island company has made activism a difficult task.

Revenue Decline Decelerates And Should Stabilize

Despite once again showing declining revenues in the fourth quarter of 2015, O2Micro has managed to slow the revenue declines over the past four quarters.

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