O2micro International Ltd (OIIM) 2002 Q2 法說會逐字稿

Good afternoon and welcome ladies and gentlemen to the O2 Micro international earnings conference call for the second quarter fiscal year 2002 ended June 30th, 2002. At this time I would like to inform you that this conference is being recorded for rebroadcast and that all participants are in a listen-only mode. At the request of the company, we will open up the conference for questions and answers after the presentation. With us today from O2 Micro are Mr. Gil Goodrich, director of investor relations; Mr. Sterling Du, chairman and CEO; Mr. Jim Keim, director; and Mr. Perry Kuo, CFO. I will now turn the conference over to Mr. Gil Goodrich, director of investor relations. Please go ahead, sir.

下午好，歡迎女士先生們來到 O2 Micro第二次國際財報電話會議 2002 財年季截至 2002 年 6 月 30 日。現在我想通知大家，這次會議是 正在錄製以供重播，並且所有參與者都處於 只聽模式。應公司要求，我們將召開本次會議 演講後的提問和回答。今天與我們一起參加 O2 Micro 的是 Gil Goodrich 先生，他是 投資者關係;董事長兼執行長杜斯特林先生；吉姆先生 凱姆，導演；以及財務長郭佩里先生。我現在將會議交給主任 Gil Goodrich 先生 投資者關係。請繼續，先生。

Thank you, Brian. Good afternoon, this is Gil Goodrich, director of investor relations. I would like to review the forward-looking statement. Then we will, in order, hear from Perry Kuo, CFO, for the financial report, Jim Keim, director, for market highlights, and Sterling Du, CEO and chairman for closing comments. After the report we will open the floor for 30 minutes for questions. Certain statements in this discussion are forward-looking statements within the meaning of the federal securities laws. Statements made in this release that are not historical, including statements regarding O2 Micro's or management's intentions hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Factors that could cause actual results to differ materially include risks and uncertainties such as reduced demand for products of electronic equipment manufacturers, which include O2 Micro's products, due to adverse economic conditions in general or specifically affecting O2 Micro's markets. Technical difficulties and delays in the development process, and errors in the products. You're also referred to the documents filed by O2 Micro with the SEC from time to time, including, but not limited to, the form F 1 in connection with the company's initial public offering in August of 2000, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. These statements made herein are dated information. Now I would like to introduce Perry Kuo, CFO of O2 Micro for a discussion of the revenue, income and financial highlights of second quarter of fiscal year 2000 ended June 30th, 2002.

謝謝你，布萊恩。下午好，我是吉爾 古德里奇，投資者關係總監。我想評論一下 前瞻性聲明。然後我們將按順序聽取 Perry Kuo，財務官，負責財務報告；Jim Keim，董事，負責財務報告 市場亮點，首席執行官兼董事長杜斯特林 (Sterling Du) 閉幕 評論。報告結束後，我們將開放 30 分鐘 問題。本次討論中的某些陳述具有前瞻性 聯邦證券法意義內的聲明。本新聞稿中的非歷史陳述包括 有關 O2 Micro 或管理層意圖希望的聲明， 信念、期望、陳述、預測、計劃或 對未來的預測屬於前瞻性陳述 《私人證券訴訟改革法》的涵義 1995年。此類陳述涉及可能導致的風險和不確定性 實際結果與這些中規定的結果有重大差異 聲明。可能導致實際結果出現重大差異的因素 包括風險和不確定性，例如需求減少 電子設備製造商的產品，其中包括 O2 Micro的產品，由於總體經濟狀況不利或 特別是影響 O2 Micro 的市場。技術難點 開發過程中的延誤以及產品中的錯誤。您也可以參考 O2 Micro 向以下機構提交的文件： SEC 不時提供，包括但不限於表格 F 1 與公司八月的首次公開募股有關 2000 年，它確定了可能導致 實際結果與其中所包含的結果不同 前瞻性陳述。本文中的這些陳述是過時的資訊。現在我想介紹一下 O2 Micro 的 CFO Perry Kuo。 討論收入、收入和財務亮點 2000財年第二季截至2002年6月30日。

Thank you and good afternoon everyone. This is O2 Micro's earnings announcement covering the second quarter of year 2002 ended June 30, 2002. I will highlight our operating results and projections. Jim Keim, director, will provide market highlights. Closing comments will be made by Sterling Du, CEO. After that we will answer questions. First, I want to emphasize that O2 Micro continues to be profitable and continues to grow. Giving our conference call on May 1st, 2002, we projected Q2 revenue to be two percent to five percent above the Q1 revenue. O2 Micro Q2 revenues are up quarter over quarter and year-over-year. I would like to now announce the earnings result for the second quarter of 2002 ended June 30, 2002. Revenue for the second quarter was 17.7 million [phonetic] An increase of 10 percent from the preceding quarter and an increase of 81 percent from comparable quarter of the year. This is an all time record high revenue quarter for O2 Micro. Surpassing our previous record high revenue quarter of 16.1 million in Q1, 2002. We're extremely pleased with the growth in revenue in Q2 as income is on top of sequential revenue growth in Q1 of five percent which is traditionally a weaker quarter in our industry. This result have been obtained in a period that's been very difficult for the industry. O2 Micro grew revenue sequentially in the second quarter after sequential revenue growth in Q1. Net income for the second quarter was three million and 8,000 compared to three million and 29,000 of the preceding quarter. And up to 959,000 for the comparable quarter of the prior year. This net income of three million and 8,000 represents a one percent decline from the previous quarter and a 214 percent growth over the comparable quarter of the previous year. Gross profit margin for the second quarter was 58.2 percent, compared to 64.3 percent for the preceding quarter. And up to 65.8 percent for the comparable quarter of the prior year. Margins in Q2 were impacted negatively by two factors. The first was product mix with increased consumption of low end E commerce products we are gaining market share. We also experienced some slow year as we went into a learning curve on some of our power product in [inaudible] O2 Micro is spending its [inaudible] To a mixed future production demand and it's expansions can require some process adaptions. We're happy to report that we're steadily improving and we expect we will be a key partner in [inaudible] As we move forward. R and D expense for the second quarter was four million and 626,000, an increase of 54,000 for the preceding quarter or one percent. And an increase from the comparable quarter of the previous year of 42 percent. This investment in research and development we're making is in keeping with the goal of O2 Micro to continue with a high growth company. Operating profit margins for the second quarter were 15.8 percent compared to 19.3 percent for the preceding quarter and eight percent for the comparable quarter of the prior year. Income tax for the first quarter was 465,000, compared to 487,000 in the preceding quarter. And a 325,000 for the comparable quarter of the prior year. Earnings per share is fully diluted for the second quarter ended June 30, 2002 were eight cents per share, compared to eight cents per share for the preceding quarter and three cents for comparable quarter for the prior year. O2 Micro has 121 million in cash and short-term investment. In addition, O2 Micro has no debt. Short-term investment were money [inaudible] Government bonds of certain developed countries. [Inaudible] Days sales outstanding for the second quarter were 36 days. Compared to 26 days for the previous quarter and 67 days for the comparable quarter of the prior year. Investment in shares of stock, as of June 30, 2002 is 271,000. This compares to 400,000 at March 312002 and a 500,000 at December 31, 2001. The decrease of 100,000 in Q1 at 129,000 in Q2 is an investment loss accrual that came as a result of the investment companies completion of additional financing at a price less than our investment cost. Investment in 360 degree [inaudible] Limited was one million 750,000 at June 30, year 2002, compared to one million 750,000 at March 31, 2002. This investment is in the form of a convertible loan. 360 degree web limited is our strategic partner in the development of the [inaudible] Business. 360 degrees web is not a customer of O2 Micro, nor is 360 degree web a supplier to O2 Micro. A portion of 360 degree web product sales is to users of [inaudible] Products. Inventory turns ratio for the second quarter was 3.7 compared to 3.8 for the previous quarter. And 2.8 for the comparable quarter of the previous years. O2 Micro had a positive cash flow in the second quarter of one million and 132,000, including short-term investment. This compares to 964 thousand in the preceding quarter. Short-term investment is money invested in U.S. treasury bills, [inaudible] AA rating and government bonds of certain developed countries. Starting O2 Micro now has 229 employees. 62 percent of are engineers. This positions us well on new product development to continue in [inaudible] Of new product and small customer design wins in the future. O2 Micro achieved higher than expected revenues in Q2 based upon increased market penetration of our e-commerce product as well as expected sales of [inaudible] Product or large LCD monitors. We expect to continue gain market share in e-commerce product over the next 18 months. Large LCD display product will enjoy tremendous growth in coming years. We do believe there was some inventory building in Q2 that were slow revenue growth until later this year. O2 Micro sees Q2 revenue to be flat slightly up and remains confident of [inaudible] Revenue guidance of 17 million for this year. While we do expect some improvement in Q3 margins to the high end of our model, we will remain our investors - our long-term margins are in the area of 55 percent to 60 percent area. I would now pass the call to Jim Keim, director and he will review the market and customers.

謝謝大家，大家下午好。這是 O2 Micro 的第二季財報 2002 年季截至 2002 年 6 月 30 日。我將重點介紹我們的經營績效和預測。吉姆·凱姆, 總監將提供市集亮點。結束評論將 由首席執行官杜斯特林 (Sterling Du) 製作。之後我們將回答問題。首先，我想強調 O2 Micro 仍然是 獲利並持續成長。召開我們的電話會議 2002 年 5 月 1 日，我們預期第二季營收為百分之二到百分之五 高於第一季營收的百分比。O2 Micro 第二季度營收季增 一年又一年。我現在想宣布第二次的獲利結果 2002年季截至2002年6月30日。第二季營收1770萬[注音] 較上一季成長10% 較去年同期成長 81%。這是 O2 Micro 創歷史新高的季度營收。超過我們之前創紀錄的季度收入 16.1 2002 年第一季達到 100 萬美元。我們對第二季營收的成長感到非常滿意 第一季營收季增 5%， 傳統上來說，這是我們行業的疲軟季度。這個結果是在非常時期內獲得的 為行業帶來困難。O2 Micro 的營收季增 繼第一季營收季增之後，第二季的營收成長。第二季淨利300萬8000 上一季的人數為 300 萬，而上一季為 29,000。與去年同期相比，這一數字高達 959,000 人。這三百萬零八千的淨收入就相當於一 較上一季下降 214%，但成長 214% 與去年同期相比。第二季毛利率為58.2%， 相比之下，上一季為 64.3%。並且鋼彈 與去年同期相比成長 65.8%。第二季的利潤率受到兩個因素的負面影響。首先 低端電子商務消費增加的產品組合 我們的產品正在贏得市場份額。我們也經歷了一些 緩慢的一年，因為我們進入了一些力量的學習曲線 [聽不清楚] O2 Micro 的產品正在將其 [聽不清楚] 花在 未來的生產需求及其擴張可能需要混合 一些流程調整。我們很高興地報告，我們正在穩步改進，並且我們期望 隨著我們的前進，我們將成為[聽不清楚]的重要夥伴。第二季研發費用分別為400萬和62.6萬， 比上一季增加了 54,000 人，即 1%。且較去年同期有所成長 佔 42%。我們正在進行的研發投資是 與O2 Micro持續高速成長的目標一致 公司。第二季營業利益率為 較上一季的 19.3% 成長 15.8% 與去年同期相比為 8%。第一季所得稅為465,000，去年同期為487,000 在上一季。類似的價格為 325,000 上一年度的季度。截至第二季末的每股盈餘已完全攤薄 2002 年 6 月 30 日為每股 8 美分，而 2002 年 6 月 30 日為每股 8 美分 上一季每股收益為 3 美分，可比收益為 3 美分 上一年度的季度。O2 Micro擁有1.21億現金和短期投資。在 此外，O2 Micro沒有債務。短期投資就是金錢 [聽不清楚] 某些已開發國家的政府公債。 [聽不清楚] 第二季的應收銷售額天數為 36 天 天。相較於上一季的 26 天和 67 天 與去年同期相比。截至2002年6月30日，股票投資為271,000股。相較之下，2002 年 3 月的數據為 40 萬，12 月的數據為 50 萬 2001 年 31 日。第一季減少 10 萬，第二季減少 12.9 萬。 因投資而產生的應計投資損失 公司完成追加融資的價格低於 我們的投資成本。360°[聽不清楚]Limited 投資額 100 萬 2002 年 6 月 30 日為 75 萬，而 2002 年 6 月 30 日為 100 萬 75 萬 2002 年 3 月 31 日。本次投資以可轉換債券的形式進行 貸款。 360度網路有限公司是我們的策略夥伴 [聽不清楚] 業務的發展。 360 度網不是 O2 Micro 的客戶，360° web 也不是 O2 的供應商 微。360 度網路產品銷售的一部分是針對以下用戶的 [聽不清楚] 產品。第二季庫存週轉率為 3.7 上一季為 3.8。同期為 2.8 前幾年的。O2 Micro第一季現金流為正 萬元和13.2萬元，其中包括短期投資。相比之下，上一季為 96.4 萬。短期投資是投資美國國庫券的資金， [聽不清楚] AA評級和某些已開發國家的政府債券 國家。創辦O2 Micro目前擁有229名員工。 62% 的人是 工程師。這使我們在新產品開發方面處於有利地位 繼續[聽不清楚]新產品與小客戶設計 贏在未來。O2 Micro 在第二季的營收高於預期 提高我們的電子商務產品的市場滲透率以及 [聽不清楚] 產品或大型 LCD 顯示器的預期銷售量。我們 預計將繼續獲得電子商務產品的市場份額 未來 18 個月。大型液晶顯示產品未來將迎來巨大成長 年。我們確實相信第二季庫存增加 直到今年晚些時候，收入成長緩慢。O2 Micro 預計第二季營收持平，略有上升，維持不變 對此有信心[聽不清楚]收入指引為 1700 萬 年。雖然我們確實預計第三季的利潤率會有所改善 我們的模式高端，我們仍將是我們的投資者 - 我們的 長期利潤率在 55% 至 60% 之間 區域。我現在會將電話轉給總監吉姆凱姆 (Jim Keim)，他將審核 市場和客戶。

Thank you, Perry. In Q2 our focus remained on growing our company based on new products and increased market penetration. Let us highlight some areas of key activity. Let's start with the intelligent e-commerce group. During Q2, O2 Micro achieved a number of significant design wins. We are now the recognized technological leader in PCM CIA product with SmartCardBus as well as our recently introduced four in one memory card bus controllers that support four widely used flash media formats. Smart media, memory stick, multi-media card and SD memory card. Design wins in these high end products should lead to market share increases and continue to boost revenues as we move into 2003. Our e-commerce group has also expanded its product offering to include a full family of analog power switch products that directly support our SmartCardBus four in one memory card bus and guardian products. The intelligent inverter group continues to expand bodes its product offering and patent position worldwide. While we have been the leader in high end LCD monitor applications we're introducing a family of Royer Raptor products that will allow us to penetrate the more cost competitive high volume 15 inch LCD monitor market as well as other low end applications. We expect these products to significantly impact revenues in the first half of 2003. Our patent position also continues to expand. In the United States, our patent coverage has been broad denied and adaptive inverters through the issuance of an additional patent with 19 claims. We've also received a patent with broad claims for this technology in Taiwan, where the majority of inverter modules are manufactured. This will enable us to more rapidly defend our technology from prior [inaudible]. We strongly believe that the inverter market will continue its rapid growth in O2 Micro will remain in a leadership position due to our strong product and patent positions. Our intelligent power group continues to expand its product base. In addition to volume shipments of on you new lithium charger going to HP, we have begun volume shipments of our new product line of high efficiency, low cost chargers called magic star that are targeted for high efficiency mobile applications. We have also begun sampling product for high end DC/AC to [Gap in audio] Intel advanced micro processers. These new products can significantly increase both our customer base and opportunity for growth. The intelligent DJ group is in volume production on our new MP three super DJ. We're also pleased to see desktop design win opportunities increase as a growing number of customers are seeing the need to utilize our DJ products in the new generation of smaller and more portable desk tops. Plans for this group to introduce major analog based product later this year remains solidly in place. I will conclude with a general market commentary. At the end of last quarter, we stated that we remain cautious and are prepared for ongoing market conditions to remain difficult. These same words apply to our current market where neither corporate nor consumer demand is expected to increase at historic rates in the third or fourth quarter. We will continue to focus on growing our business through innovative new products that enable market share growth. I will now pass the call on to sterling Du, CEO and chairman for closing remarks.

謝謝你，佩里。第二季我們的重點仍然是 基於新產品和不斷成長的市場來發展我們的公司 滲透。讓我們重點介紹一些關鍵活動領域。先從智能電商群說起。在第二季度，O2 Micro 取得了許多重大設計勝利。我們現在是 PCM CIA 產品公​​認的技術領導者 與 SmartCardBus 以及我們最近推出的四合一 支援四種廣泛使用的快閃記憶體的記憶卡匯流排控制器 媒體格式。智慧媒體、記憶棒、多媒體卡和 SD 記憶卡。這些高端產品的設計勝利應該會帶來市場份額 進入 2003 年，我們的收入將繼續增加。我們的電子商務集團也將其產品範圍擴大到 包括全系列類比電源開關產品 直接支援我們的SmartCardBus四合一記憶卡匯流排以及 守護者產品。智慧逆變器群體持續擴大預示著其 全球範圍內的產品供應和專利地位。雖然我們一直是高階液晶顯示器應用的領導者 我們正在推出一系列 Royer Raptor 產品，這些產品將 讓我們能夠滲透更具成本競爭力的大批量 15 吋液晶顯示器市場以及其他低端應用。我們預計這些產品將顯著影響收入 2003年上半年。我們的專利地位也不斷擴大。在美國 各州，我們的專利覆蓋範圍已被廣泛拒絕和適應性 逆變器透過頒發額外專利 19 索賠。我們也收到了一項對此有廣泛主張的專利 台灣的技術，大部分逆變器模組都是在台灣 製造的。這將使我們能夠更快地捍衛我們的 先前的技術[聽不清楚]。我們堅信 歐二微逆變器市場將持續快速成長 憑藉我們強大的產品和能力，保持領先地位 專利地位。我們的智慧電源集團不斷擴大其產品基礎。除了為您批量發貨的新型鋰充電器之外 去惠普，我們的新產品已經開始大量出貨 稱為 Magic Star 的高效率、低成本充電器系列 針對高效行動應用程式。我們也開始對高階 DC/AC 產品進行取樣，以達到 [差距] 音訊] 英特爾先進微處理器。這些新產品可以 顯著增加我們的客戶群和機會 生長。智慧DJ團隊正在量產我們的新MP 三位超級DJ。我們也很高興看到桌面設計獲勝 隨著越來越多的客戶看到機會增加 需要在新一代中使用我們的 DJ 產品 更小、更便攜的桌面。該小組計劃 今年稍後推出主要的基於模擬的產品仍然是 牢固就位。我將以一般市場評論作為結束。上季末，我們表示我們保持謹慎態度 已做好應對持續困難的市場狀況的準備。這些話同樣適用於我們目前的市場，無論是 企業和消費者需求預計將以歷史水準成長 第三或第四季的利率。我們將繼續專注於透過以下方式發展我們的業務 創新的新產品可促進市場佔有率的成長。現在我將把電話轉給執行長兼董事長杜斯特林（Sterling Du） 結束語。

Thank you, Jim. Let me highlight the second quarter of 2002. As [inaudible] O2 Micro has record high revenue quarter in Q2 which is - which reached a level of our street number of 2003. This [inaudible] Comes from the [inaudible] Of our company, our leading proprietary technologies and stating pro formas in the key product areas such as e-commerce and [inaudible]. [Inaudible] Continue to expand and explore new technologies and develop system arc textures. Our [inaudible] Increased to 639, up from 581 last quarter. Our second half of 2002 this year will be a revving up period for new products a significant number of new products that have been introduced to the market will migrate to the [inaudible] And [inaudible]. [Inaudible] In Taiwan will continue to face the challenge of delivering the new product on time and to minimize the learning curve. We also have to remember the economy situation may not recover soon, given a soft market O2 Micro strategy will be [inaudible] To the top manufacturers, develop proprietary sound management technologies and continue to be aware of global infrastructure that will enable us to reach our goal in year 2002 and beyond. So thank you very much for taking our conference call.

謝謝你，吉姆。讓我重點介紹第二個 2002 年第四季。[聽不清楚] O2 Micro 收入創歷史新高 第二季的四分之一 - 達到了我們街道的水平 2003年的編號。這[聽不清楚]來自[聽不清楚] 我們的公司，我們領先的專有技術和聲明專業 電子商務等關鍵產品領域的形式 [聽不清楚]。 [聽不清楚] 繼續擴展並探索新的 技術並開發系統弧形紋理。我們的[聽不清楚] 從上季的 581 家增加到 639 家。今年2002年下半年將是我們的加速期 新產品 大量新產品已上市 引入市場將遷移到[聽不清楚]並且 [聽不清楚]。 [聽不清楚] 台灣將繼續面臨 按時交付新產品並最大限度地減少挑戰 學習曲線。我們還必須記住，經濟狀況可能不會復甦 很快，鑑於市場疲軟，O2 Micro 策略將[聽不清楚] 頂級製造商，開發專有的健全管理 技術並繼續了解全球基礎設施 這將使我們能夠在2002年及以後實現我們的目標。非常感謝您參加我們的電話會議。

Ladies and gentlemen, the floor is open for 30 minutes or so at this time for questions and answers. Brian, may we take the first question, please 00:17:50

女士先生們，本場開放 30 人 此時需要幾分鐘左右的時間進行提問和回答。布萊恩，可能 我們回答第一個問題 00:17:50

Thank you. Ladies and gentlemen, the question and answer session will now begin. If you're using a speaker phone, please pick up your handset before pressing any numbers. Should you wish to ask a question, you may do so by pressing one 4 on your push button phone at this time. Should you wish to withdraw the question, press 1, 3. The questions will be taken in the order they are received. Stand by for your first question. That first question comes from Tory Sandberg. Please state your affiliation followed by your question.

謝謝。女士們先生們，這個問題和 答辯環節現在開始。如果您使用免持電話，請拿起聽筒 在按任何數字之前。如果您想提問，可以按 4 此時在您的按鍵電話上。如果您想撤回問題，請按 1、3。這 問題將按照收到的順序進行處理。支援 對於你的第一個問題。第一個問題來自托里·桑德伯格。請說明您的 隸屬關係，然後是您的問題。

USBancorp Piper Jaffray. Good afternoon, good quarter. Couple questions. First of all, could you give us a little bit more color on your visibility for your guidance, maybe referring a little bit to some customer forecast you may have at this point, is this guidance you feel very comfortable? Help us understand more your color there.

USBancorp Piper Jaffray。午安，好 四分之一.幾個問題。首先，您能給我們一個 也許在你的能見度上多一點顏色來為你提供指導 稍微參考一下您可能會有的一些客戶預測 至此，這個指導您是否感覺很舒服？幫助我們 更了解你的顏色。

Tori, this is Jim Keim. Tori, we forecast our business based on major customers and our major customers by and large give us forecasts for the next six to 12 months. And then the notebook area, these forecasts are typically very good and very firm. We've seen no major movement in the forecasts over the last few months, which makes us feel good about the notebook portion of the forecast as we look into Q3. The one issue that Perry did mention was in the LCD monitor. Due to previous allocation of LCD monitor product that was occurring in the marketplace during Q1 and Q2, there was some inventory building that went on. As a result of this, there is slack and demand in the month of July and we perceive that going on through the middle of August. That will cause some lessened revenue in that area. However, we do have major customer forecasts that are in place for September. So at this point we are reasonably comfortable with our forecasts for Q3 overall.

托里，這是吉姆·凱姆。托里，我們預測我們的 基於主要客戶的業務以及我們的主要客戶 Large 為我們提供了未來 6 至 12 個月的預測。進而 在筆記型電腦領域，這些預測通常非常好且 非常堅定。我們沒有看到預測有重大變化 過去幾個月，這讓我們對這款筆記本感覺良好 我們對第三季的預測的一部分。佩里確實提到的一個問題是液晶顯示器。到期的 到之前發生的液晶顯示器產品分配 第一季和第二季市場上有一些庫存 繼續建造的建築。受此影響，本月需求疲軟 七月，我們認為這種情況一直持續到八月中旬。這將導致該地區的收入減少。然而，我們 確實有九月份的主要客戶預測。所以目前我們對我們的預測相當滿意 對於第三季整體而言。

Sterling, you indicated you now have really come to a point where you have a whole range of new products introduced that will start generating some revenue, anywhere between now and let's say middle of next summer. And specifically I'm talking about things like the magic star or the Royer Raptor, can you give us a little bit more flavor on when you expect some of these products to generate revenue and maybe also if you could give us an update on the design cycle for DC/AC converters.

史特林，你表示你現在確實已經達到了一個目標 推出一系列新產品的地方 從現在到我們之間的任何地方都會開始產生一些收入 說明年夏天中旬。我具體說的是 像魔星或羅耶猛禽這樣的東西，你能給我們一個嗎？ 當您期待其中一些產品時，味道會更豐富 創造收入，也許您也可以提供我們最新情況 關於 DC/AC 轉換器的設計週期。

It's a good question and it's also a pretty broad question. First of all, let me highlight what I mentioned about, a significant number of new product going to be [inaudible] Production phase in the second half of this year. As we were talking about, e-commerce [inaudible] [Inaudible] And that will be engaged with a major top tier PC manufacturer and follow the trend that the computers included - the notebook computers pay the digital [inaudible] Architecture in the future technology trend. So we see [inaudible] Very important and O2 Micro has developed this kind of technology for auto detection a couple years ago and [inaudible] Developing the smart card, which integrated the smart card with the P CIA controller. So that resulted to our leader shifting in technology. And that is going to be one of the major parts we're going to be facing production of the second half of this year. We will see that [inaudible] Will be majorly breaking up by tend of the year all the way extending into the next year. So second part is going to be as inverter as Jim mentioned we call it Royer Raptor as the totally new architecture that's coming from our leader position in the inverter, will further come out very cost-effective, very ideally for use in the application of low end LCD monitors. As you know, the LCD monitor segment is always, already very, very high growth, especially for the 50 H label [phonetic] And previous architecture [inaudible] Major target for the 15 inch high end go all the way to large LCD display panel. So by engaged in direct compete on a cost point of view with traditional royalty design, this part of our family will be revving up we estimate starting from early next year and that will be high gross in our [inaudible] Is going to be very busy to meet the demand from the market. We also have the DC/AC we call gem 90 products. We mentioned about in the previous conference call. And this product we have one of the most positive efficiency [inaudible] To a company with Intel CPUs. However, every major power converting process take time to get in the market. Our DCD today we're in the early stage to developing the market penetration and the timing predict revenue generate will be in the second half of next year, and beyond. So that is always traditional historically those products take more time. And we also have major stock. We have mentioned this. It's semi custom made products not using smart card interface. So in terms of cost structure, it's better than our custom made design [inaudible] Del computers and the [inaudible] Of the HP and slash Compaq. So this major stock also going to be also in this revving out Post Office production and production phase at the end of this year and will grow with significant revenue in the next year. So that's somewhat major highlights of major product in the coming future.

這是一個好問題，也是一個漂亮的問題 廣泛的問題。首先，讓我強調一下我提到的內容 大約，大量新產品將[聽不清楚] 今年下半年投入生產。就像我們一樣 談論電子商務 [聽不清楚] [聽不清楚] 那將是 與主要頂級PC製造商合作並跟上潮流 計算機包括 - 筆記型電腦支付 數字[聽不清楚] 未來科技趨勢中的建築。所以我們看到 [聽不清楚] 非常重要，O2 Micro 已經開發出來 幾年前這種自動檢測技術 [聽不清楚] 開發智能卡，整合了智能 附有 P CIA 控制器的卡片。所以這導致了我們的領導 技術的轉變。這將是主要的之一 我們將在下半年生產的零件 今年。我們將看到[聽不清楚]將被重大破壞 今年的趨勢一直持續到明年。所以第二部分將是吉姆提到的逆變器，我們稱之為 Royer Raptor 是一個全新的架構 我們在逆變器領域的領先地位，將會進一步顯現出來 性價比高，非常適合低端應用 液晶顯示器。如您所知，液晶顯示器領域始終是， 已經非常非常高的成長，尤其是 50 H 標籤 [語音] 與先前的架構 [聽不清楚] 主要目標 15吋高端一直到大型液晶顯示面板。因此，透過從成本角度與 傳統的皇室設計，我們家庭的這一部分將是 我們估計從明年初開始加速，這將 在我們的[聽不清楚]中表現得非常糟糕 會很忙去見面 來自市場的需求。我們還有 DC/AC，我們稱之為 gem 90 產品。我們提到過 關於之前的電話會議。我們有這個產品 對一家公司來說，這是最積極的效率之一[聽不清楚] 英特爾 CPU。然而，每個主要的電源轉換過程都需要時間才能進入 市場。今天我們的 DCD 正處於開發的早期階段 市場滲透率和時間預測收入產生 將於明年下半年及以後進行。所以那就是 從歷史上看，這些產品總是傳統的，需要更多的時間。我們還有主要庫存。我們已經提到過這一點。這是半 不使用智慧卡介面的客製化產品。所以就而言 成本結構，比我們客製化的設計更好 [聽不清楚] Del 計算機和 [聽不清楚] HP 和斜杠 康柏。所以這檔主要股票也會在這種加速中 結束郵局製作與製作階段 並將在明年帶來可觀的收入成長。這是未來主要產品的主要亮點 未來。

Very good. And just back to Jim or Perry, gross margin came down due to two reasons, and I think you explained those on the call. Could you walk us through a little bit more what you're doing to see an improvement in gross margin and do you actually see gross margins trending back up to 60 percent in Q3.

非常好。回到吉姆或佩里，噁心 利潤率下降有兩個原因，我想你解釋了 那些正在通話的人。可以再介紹一下嗎 您正在採取哪些措施來提高毛利率？ 事實上，第三季毛利率回升至 60%。

This is Perry. In the one end low cost [Gap in audio] Having good way to us to microwave from low end e-commerce to the SmartCardBus, which we already see the migration and this will help in some portion. And also as sterling mentioned that our lodge tick and testing group in Taiwan will be very busy in future quarters and we have been working closely with our new [inaudible] To increase the yield rate. So in the [inaudible] From 98 to 99 we have turn the low gross margin to high gross margin and this is a record and we have the ability to enhance in this area. We already to see some improvement in this area.

這是佩里。一方面成本低[音訊差距]我們有好的方法 從低端電子商務到 SmartCardBus 的微波，我們 已經看到遷移，這將在某些方面有所幫助。和 也正如斯特林所提到的，我們的旅館蜱蟲和測試小組 台灣在未來幾季將會非常忙碌，我們一直在 與我們的新[聽不清楚]密切合作以提高產量 速度。因此，在 [聽不清楚] 從 98 年到 99 年，我們已經將低毛利率轉向了 利潤率達到高毛利率，這是一個記錄，我們有 提升這方面的能力。我們已經看到一些 該領域的改進。

Let me also comment to your question, Tori, related to [inaudible]. X fab is a new fab for us. X fab is focused on extended temperature range products. They have served the automotive business in Europe for a long period of time. We have seen the need to focus on some extended temperature range products, as well as move our capacity higher and higher as we look out into 2003 and 2004. X fab has mobile fabs both in Germany, as well as former Texas Instruments fab in Texas. Their processes are portable both from Germany to Texas. We did take some of our high volume products, including some of our inverter product where we do already have automotive business, including last time we mentioned Toyota, and we redid retarget those products to X fab. Any time you bring up a new fab you go through a learning curve that usually last $anywhere from three months to a year. We are in the process of going through that learning curve. We do expect yields to continue to improve. But we're happy to say that yields at this point are showing significant improvement and we are delivering high volume product out of X fab. The other major factor in going to X fab is long-term wise we do see the opportunity to lower our costs significantly, particularly in the extended temperature range products and other markets.

讓我也評論一下你的問題，Tori，相關的 至 [聽不清楚]。X fab 對我們來說是一個新工廠。X fab 專注於 擴展溫度範圍的產品。他們曾經服務過 長期從事歐洲汽車業務。我們有 發現需要注意一些擴展的溫度範圍 產品，以及隨著我們的發展，我們的產能越來越高 展望2003年和2004年。X fab 在德國和前德州均設有移動晶圓廠 德克薩斯州的儀器工廠。他們的流程都是可移植的 德國飛往德克薩斯州。我們確實採取了一些大批量產品， 包括我們已經擁有的一些逆變器產品 汽車業務，包括我們上次提到的豐田，以及 我們重新將這些產品重新定位到 X fab。任何時候你提起 一個新的晶圓廠，你會經歷一個通常持續的學習曲線 三個月到一年的任何時間。我們正在處理 經歷這個學習曲線。我們確實預期收益率 繼續改進。但我們很高興地說，這會產生 點顯示出顯著的改進，我們正在交付 X 晶圓廠生產的大量產品。進入 X fab 的另一個主要因素是我們所做的長期明智的決定 看到顯著降低成本的機會，特別是 在擴展溫度範圍產品和其他市場。

Thank you

謝謝

Thank you. Your next question comes from David Woo.

謝謝。你的下一個問題來自吳大衛。

[Inaudible] Securities in Los Angeles. Just two quick questions, please. Can you elaborate on the bit about the notebook business. How much of your notebook business is concentrated in one customer and what is the chance of you expanding that customer base? And the other thing I was wondering is seasonality, is there much of seasonality in your notebook business as the year goes along, or is it mostly going to business customers where there's not as much of the sort of back to school season in the notebook business.

[聽不清楚] 洛杉磯的證券。就兩個 請快速提問。您能否詳細說明一下 筆記本業務。您的筆記本業務佔多少比例 集中在一個客戶身上，你的機會有多大 擴大客戶群？我想知道的另一件事 是季節性的，你的筆記本裡有很多季節性嗎 隨著時間的推移，生意還是主要是生意 沒有太多返校的顧客 筆記型電腦產業的旺季。

There's multiple questions there. So let me answer those, if I didn't answer any of them when I'm done please feel free to refresh my memory. Certainly in the seasonality, historically there's been a seasonality where 40 percent of the notebooks would traditionally ship in the first half of the year and 60 in the second half. We feel that this year that will be more like a 45/55 positioning in the marketplace. We do feel that there is weakened demand both in the consumer, as well as in the corporate sector. Historically, corporate notebooks have been a higher percentage of the market. But as we've moved through this year, we're seeing the consumer end of the notebook business continue to grow at a more rapid pace than the corporate end. To address your question about our customer base: We ship product now to every major notebook manufacturer worldwide. We are not dominated by any one notebook company. We do ship a variety of products to different customers. Our position in growing our business is simply too to expand our penetration from one product to two product, to four products, with each one of the majors and we think we're moving forward very successfully in that area. So I hope that answered your question.

那裡有很多問題。那麼讓我來回答一下 那些，如果我在完成後沒有回答任何一個，請感覺 有空刷新一下我的記憶。當然，在季節性方面，歷史上曾有過 季節性，40% 的筆記型電腦傳統上會 上半年出貨60艘，下半年出貨60艘。我們 感覺今年會更像是45/55的定位 市場。我們確實認為消費者的需求減弱，因為 以及企業部門。從歷史上看，企業筆記型電腦所佔的比例較高 市場。但隨著今年的進展，我們看到 消費端筆電業務持續成長 速度比企業端更快。為了解決您有關我們客戶群的問題：我們運送產品 現在全球各大筆記型電腦製造商。我們不被任何一家筆記型電腦公司所統治。我們確實運送 為不同的客戶提供多種產品。我們在發展業務方面的地位也足以擴大我們的業務 從一種產品滲透到兩種產品，再到四種產品， 對於每個專業，我們認為我們正在向前邁進 在該領域取得了成功。所以我希望這回答了你的問題。

Yes. Does that include both the branded OEMs as well as the ones in Taiwan, I guess the ODMs?

是的。這是否也包括品牌 OEM 廠商 台灣的，我猜是ODM？

Absolutely. Every top 10 major notebook manufacturer by brand name we, some of our product ends up in their notebooks. We also are engaged with every major company in Taiwan that sells notebooks either for their own name or for a brand name.

絕對地。各大筆記本前10名 我們的品牌製造商，我們的一些產品最終進入 他們的筆記本。我們也與各主要公司合作 台灣以自己的名義或以其他名義銷售筆記型電腦 品牌。

Thank you.

謝謝。

Your next question comes from Dan Scobul [ph]. State your question followed by your question.

您的下一個問題來自 Dan Scobul [ph]。陳述你的問題，然後提出你的問題。

Needham and Company. Nice revenue growth there. On the gross margin, you identified the two areas between the yielding and the product mix shift. What was the, say, approximate percentage in the change from quarter to quarter.

李約瑟公司。那裡的收入成長不錯。在毛利率上，您確定了毛利率之間的兩個區域 產量和產品結構的轉變。比如說，變化的大約百分比是多少？ 季度到季度。

Dan, could you repeat the question? Do we understand that the question is what's the change in gross profit margin from Q1 to Q2?

丹，你能重複這個問題嗎？我們要不要 了解問題是毛利有什麼變化 Q1 到 Q2 的利潤率？

Yeah, gross margin was down about 600 basis points sequentially. You said part of that was a product mix and part of that was the yielding at the new facility. I was just wondering the contribution from those two factors, was it like fifty/fifty or was it -

是的，毛利率下降了約 600 個基點 依次。你說其中一部分是產品組合，一部分是 這是新工廠的收益率。我只是想知道 這兩個因素的貢獻是五十/五十 或者是——

40/60. For the low end commerce it's 40 percent and 60 percent is on the low yield with the new partner.

40/60。對於低端商業來說是 40% 60% 的收益來自於新合作夥伴的低收益。

And the new partner, approximately what percentage of production did they account for?

而新的合夥人，約佔多少比例 他們佔了生產量嗎？

It's about 40, 40 to 50 percent.

大約是40%、40%到50%。

I think, Dan, do I understand your question to be with the new fab partner, X fab, how much of our total revenue comes from them?

我想，丹，我是否理解你的問題是 與新的晶圓廠合作夥伴 X 晶圓廠合作，占我們總收入的多寡 來自他們？

Either revenue or follow production, some sort of metric.

要嘛是收入，要嘛是跟隨生產，某種形式 公制。

We don't really break that out, Dan. But what I will tell you is that X fab in the last quarter was producing product in our high volume inverters that go into a variety of applications all the way from notebooks to high end monitors, as well as in our intelligent power area, including some of our high volume lithium ion. Self balancing charger, magic star charger as well as some of our charger products that ships, customer activities such as Dell. So it was in high line production.

我們並沒有真正解決這個問題，丹。但我什麼 會告訴你的是 X fab 在上個季度正在生產 我們的大容量逆變器中的產品可用於各種 從筆記型電腦到高階顯示器的各種應用， 以及我們的智慧電力領域，包括我們的一些高 體積鋰離子。自平衡充電器、魔星充電器以及我們的一些 出貨的充電器產品、顧客活動，例如戴爾。所以 它處於高生產線生產狀態。

It was a fairly significant contributor, then?

那麼，這是一個相當重要的貢獻者呢？

Yes.

是的。

In terms of revenue, can we assume that the revenue by product line is still fairly balanced among the four?

就收入而言，我們可以假設收入 以產品線來看，四者之間還算均衡嗎？

As I reported, we have gained a market share in the low - in the e-commerce area. So e-commerce area it's in the high end of the product area. It's about 30 percent.

正如我所報導的，我們已經獲得了以下領域的市場份額： 低——在電子商務領域。所以電子商務領域是 產品領域的高端。大約是百分之三十。

What we've said in the past still holds true. That is that for each of the four product lines, each is less than 30 percent of total revenue and each is greater than 20 percent of total revenue.

我們過去所說的話仍然適用。那 是四個產品線中的每一個都少於 30 個 佔總收入的百分比，且每項均大於 20% 總收入。

Okay. Also again just I guess predominantly revenue goes to Asia and you're still looking at, I don't know, 80 percent sort of number, revenue by application to notebook PCs?

好的。另外，我想主要收入流向亞洲， 你還在看，我不知道，80% 的數字， 筆記型電腦應用的收入？

Virtually 100 percent of revenue is shipped to Asia. And about 80 percent now is into notebook computers.

幾乎 100% 的收入都運送到 亞洲。現在約有 80% 的人購買筆記型電腦。

Are you seeing any traction in terms of the smart card adoption state side? In the past you've talked about some customers there. Apparently you're doing better with it overseas. But we're looking to see some traction here state side.

您是否看到智能方面有任何吸引力？ 卡採用州方面？過去你曾經談論過一些 那裡的顧客。顯然你在海外做得更好。但我們希望在州方面看到一些牽引力。

Yeah, last quarter we mentioned about one of the top tier PC manufacturers going to adopt this for their, as general - optional. [Inaudible] Go to the HP/Compaq web site can you buy O2 Micro smart card [inaudible] Optional for the web site. But for the [inaudible] Feature which drives the acceptance of the smart card, that still remains very solid. The price is on the right track. [Inaudible] Early next year, going to be a launch to the market. Other than that, for the bank side, for the financial side or for income side, the product is not that significant in terms of the smart card and Visa card acceptance or deployment. But majorly because, majorly driving the smart card river deployment, [inaudible] The security needs.

是的，上個季度我們提到了其中一個 頂級 PC 製造商將採用此技術，因為 一般-可選。 [聽不清楚] 請造訪 HP/Compaq 網站 您購買 O2 Micro 智慧卡 [聽不清楚] 網站可選。但是對於推動人們接受的[聽不清楚]功能 智慧卡，仍然非常堅固。價格是在 正確的軌道上。 [聽不清楚] 明年初，將推出 市場。除此之外，對於銀行端、對於金融端或對於 就收入而言，該產品的意義並不大 智慧卡和 Visa 卡接受或部署。但主要是 因為，主要推動智慧卡河流部署， [聽不清楚] 安全需求。

Also, Perry a couple of balance sheet questions. I want to get specifically on the share buy back. I assume you repurchased some shares during the quarter. I noticed the share count went down. I was wondering what was the repurchase dollar and share and how much is left to be authorized?

另外，佩里提出了幾個資產負債表問題。我 想要具體了解股票回購。我假設你 本季回購了部分股票。我注意到了分享 計數下降了。我想知道回購美元是多少 和份額以及還有多少需要授權？

We have purchased 89,000.

我們已經購買了 89,000 個。

It's 89,500. Please forgive us. We're trying to find a piece of paper that we had that written down on, expecting the question.

是 89,500。請原諒我們。我們正在努力 找到一張我們寫下的紙，期待 的問題。

And the [inaudible] One million 108 thousand.

還有[聽不清楚] 100 萬 108 千。

And you [inaudible] 3,000 shares or something?

你[聽不清楚] 3,000 股什麼的？

Three million. So the average share price on the buy back so far with the -

三百萬。所以平均股價 到目前為止回購 -

Are you still there?

你還在嗎？

Yes.

是的。

You cut out. Okay. Also one other question. The accounts receivable seemed to move up a little bit. Is that a reflection maybe of linearity you have some back end shipments in the quarter?

你刪掉了。好的。還有一個問題。應收帳款似乎 向上移動一點。這可能是線性的反映嗎 本季有一些後端出貨量嗎？

We shipped more to China. Originally we ship our on a cash basis. When we moved some of our key customer bases to the [inaudible] So this account receivable will increase a little bit in [inaudible] However the model which is 55 to 60 days.

我們向中國運送了更多。最初我們運送我們的 以現金為基礎。當我們將一些主要客戶群轉移到 [聽不清楚]所以這個應收帳款會增加一點 [聽不清楚] 但模型為 55 至 60 天。

So we should expect it to stay up around these ranges, then?

所以我們應該預期它會在這些附近保持上漲 那麼範圍呢？

Right.

正確的。

Thank you very much.

非常感謝。

Your next question comes from again from David Woo.

你的下一個問題再次來自David Woo。

Can you help me on one thing. On the DC to DC converter what kind of features would your product have that is not available on the market by a number of vendors already in there that, the [inaudible], the Centex [ph], the Edfils [ph] They also have DC to DC converters in the market already.

你能幫我做一件事嗎？關於 DC 到 DC 轉換器 您的產品具有哪些功能 許多供應商已經在市場上無法提供 在那裡，[聽不清楚]、Centex [ph]、Edfils [ph] 他們 市場上也已經有 DC-DC 轉換器。

Yes, that's a good question. The DC [inaudible] Auto [inaudible] Seven or eight partners that Intel choose. And every one of the company has this solution for this. O2 Micro, it's a little different. We're new to this entry of the market. So that's what I mentioned we have to take a longer time to penetrate the market. That's certainly good. The downside is we don't have historical background to [inaudible] For DC converter [inaudible] And the upside of this seems like we're doing this new design we come out from new topology [ph], basically we have been using [inaudible] Converter methodology to make O2 Micro, [inaudible] Architecture different from most people using market phase [inaudible] Hoping inter sell [inaudible], ADI, Centex [ph]. So the comparison we can reach higher performance compared to the our competition. Although I've announced it, comparative to our competition at this moment but we do know our product efficiency is one of the most power efficiencies [inaudible]. And the other performance we're talking about is we're using less capacitors, because for the high current consumption for the Intel CPU, those capacitors is very expensive, sometimes 44 thousand component - of those components. So to summarize we have a better position in a product efficiency and also efficiency in system cost of ownership.

是的，這是一個好問題。DC [聽不清楚] 汽車 [聽不清楚] 英特爾選擇的七、八個合作夥伴。和 公司的每個人都有這個解決方案。氧氣微， 有點不同。我們對這個市場的進入還很陌生。這就是我提到的我們必須花更長的時間 滲透市場。這當然很好。缺點是我們沒有歷史記錄 [聽不清楚] 對於直流轉換器 [聽不清楚] 的背景 這樣做的好處似乎是我們正在做我們推出的新設計 從新拓樸 [ph] 來看，基本上我們一直在使用 [聽不清楚] 製作 O2 Micro 的轉換器方法，[聽不清楚] 架構 與大多數使用市場階段的人不同[聽不清楚]希望 內部銷售 [聽不清楚]、ADI、Centex [ph]。所以相較之下我們可以達到更高的效能 我們的競爭。雖然我已經宣布了，但與我們相比 目前存在競爭，但我們確實知道我們的產品效率 是功率效率最高的之一[聽不清楚]。我們談論的另一個性能是我們使用更少 電容器，因為英特爾的高電流消耗 CPU，那些電容很貴，有時4.4萬 組件 - 這些組件的。總而言之，我們在產品效率方面處於更好的位置 以及系統擁有成本的效率。

Actually, can you also, the DC to DC converter does it work with both the pentium four and the pentias [ph] That is coming out next year from Intel? How does the converter compatible with both those families of CPUs.

實際上，DC-DC轉換器也可以嗎？ 它適用於奔騰四和奔騰 [ph] 英特爾明年推出？轉換器是如何實現的 與這兩個系列的 CPU 相容。

That's different. As I said O2 Micro is a new entry. So we only participate Intel, the fifth generation which is only targeted for the new Intel CPU we mentioned in the next year. And the pentium, mobile pentium four today is a fourth generation. So that's not the one we intended to engage.

那不一樣。正如我所說，O2 Micro 是一個新的 入口。所以我們只參加Intel，第五代 只針對我們接下來提到的新的Intel CPU 年。而奔騰，移動奔騰四今天已經是第四個了 一代。所以這不是我們打算參與的。

Essentially [inaudible] Kind of a product.

本質上是[聽不清楚]一種產品。

We're in that generation, yes.

我們是那一代人，是的。

And I guess the seven to eight people doing the same thing, they've got that Intel license or Intel agreements.

我猜七到八個人也在做同樣的事 事情，他們已經獲得了英特爾許可或英特爾協議。

Yes.

是的。

Thank you very much.

非常感謝。

Your next question comes again from Mr. Tori Sandberg.

您的下一個問題又來自托里先生 桑德伯格。

Piper Jaffray. Just two follow-up questions. Is Dell still your largest customer?

派珀·賈弗雷.只是兩個後續問題。是 戴爾仍然是您最大的客戶嗎？

Tori, I've not looked at the breakout for Q2 at this point. And we typically only break out 10 percent customers as we look back on the whole year. Dell is certainly a significant customer. But in terms of overall percentage, our growth in other companies has been greater than it has been at Dell.

Tori，我沒有看過第二季的突破 這點。我們通常只會突破 10% 的客戶 當我們回顧這一整年。戴爾無疑是 重要客戶。但從整體百分比來看，我們 其他公司的成長速度比以前快 戴爾。

Very good. And could you also walk through a little bit the HB Compaq merger, how that affected you early on in as the process went through and how you expect that to impact you going forward.

非常好。也可以稍微介紹一下嗎 HB Compaq 合併，這對您早期的影響 流程的經過以及您期望這將如何影響您的進展 向前。

That's a very broad based question. Tori. Let me simply say that prior to any merger activity we had very good relationships with both companies. At HP we already had been in high production with multiple products, including our inverter, our audio DJ product, as well as some of our lower end card bus product. At Compaq, we had engaged with them very early. They had been bun of our earliest users and camp I don't knows of our inverter based product. We also engaged with them in some card bus activity. And we also had a base of activity as sterling had mentioned earlier in some of our E guardian activity. So basically having had a good relationship with both companies, we've been able to move forward and as we mentioned last quarter as the merger was getting underway, we did go into high volume production with the combined operation of also our new charger product which had already been developed with Compaq. So we don't see any major issue as a result of the merger. We simply see this as being a bigger entity of more major focus for this company and one in which we will continue to focus more and more resources. We'd also mentioned that last year we did open a sales office in Houston specifically to support Compaq where the majority of the HP merger with compact as far as notebook activity is going forward.

這是一個非常廣泛的問題。托里。讓我 簡單地說，在任何合併活動之前，我們都有很好的表現 與兩家公司的關係。在惠普，我們已經處於 多種產品的高產量，包括我們的逆變器， 我們的音響 DJ 產品，以及我們的一些低階卡總線 產品。在康柏，我們很早就與他們接觸了。他們曾經是髮髻 我們最早的用戶和陣營 我不知道我們是基於逆變器 產品。我們也和他們一起參與了一些卡片巴士活動。正如斯特林所提到的，我們也有一個活動基礎 早些時候我們的一些E守護者活動。所以基本上有 與兩家公司都有良好的關係，我們能夠 繼續前進，正如我們上季度提到的，合併是 開始後，我們確實進入了大批量生產 我們的新充電器產品的聯合運營 已經與康柏一起開發。因此，我們認為合併不會帶來任何重大問題。我們 只是將其視為一個更重要的更大實體 這家公司，也是我們將繼續更加關注的公司 更多資源。我們也提到去年我們確實開了一家 休士頓銷售辦事處專門為康柏提供支持 惠普大部分併購活動都集中在小型筆記型電腦上 正在前進。

Thank you again

再次感謝你

Your next question comes from Paul Shoop [ph]. Please state your affiliation, followed by your question.

您的下一個問題來自 Paul Shoop [ph]。請說明您的隸屬關係，然後提出您的問題。

Paul J Shoop [ph] Associates. My question is, with your stock under 10 dollars, with a very large and growing cash position, would you be more prepared to be aggressive in buying your stock back? Do you have an authorization for three million shares, you bought back less than 100,000. It would appear to me that with interest rates at one and three-quarter percent you would be well advised to becoming more aggressive?

保羅‧J‧肖普 (Paul J Shoop) [ph] 同事。我的問題是，你們的股票價格低於 10 美元，而且價格非常高 大量且不斷增長的現金頭寸，您是否準備得更充分 積極回購股票？你有一個 授權300萬股，您回購少於 100,000。在我看來，利率為 1 四分之三的人會被強烈建議成為 更具攻擊性？

Yes. We are looking at the market and we will repurchase our stock at the best interest of the company.

是的。我們正在關注市場，我們將 為了公司的最佳利益而回購我們的股票。

I understand that. But it doesn't quite answer my question. The stock is now under 10 dollars, and - oh well you get my question. Thanks. Bye.

我明白那個。但這並不能完全回答我的問題 問題。現在股票價格不到 10 美元，而且 - 哦，好吧，你 明白我的問題。謝謝。再見。

Any other questions?

還有其他問題嗎？

Ladies and gentlemen, at this point we are ready for any last questions that you may have. Again, if you would like to ask your question, please press one followed by 4 on your push button phone. If there are no further questions I will turn the conference back to Mr. Goodrich to conclude.

女士們、先生們，此刻我們已做好準備 您可能有的最後問題。再說一次，如果你願意 提出您的問題，請在推送時按 1，然後按 4 按鈕電話。如果沒有其他問題，我將取消會議 古德里奇先生總結。

Thank you, ladies and gentlemen, very much for attending the O2 Micro conference call. And we look forward to seeing you in the future calls. Thank you for your support.

女士們先生們，非常感謝你們 參加 O2 Micro 電話會議。我們期待著 以後再見。感謝您的支持。

Ladies and gentlemen, this concludes your conference call for today. Thank you all for participating and have a nice day. Should you wish to access a rebroadcast of this call you may do so by dialing 1-800 428-6051, with user ID of 249091. Thank you all for participating and have a nice day. All parties may disconnect now.

女士們先生們，你們的會議到此結束 今天打電話。感謝大家的參與並祝您玩得愉快 天。如果您希望重播本次電話會議，您可以 請使用使用者 ID 249091 撥打 1-800 428-6051。感謝大家的參與並祝您有美好的一天。各方 現在可能會斷開連線。