O2Micro International Limited reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net sales of $15.217 million compared to $15.909 million a year ago. Loss from operations was of $1.755 million compared to $0.377 million a year ago. Loss before income tax of $1.550 million compared to income of $0.350 million a year ago. Net loss was $1.879 million or $0.07 per basic and diluted share compared to net income of $0.012 million a year ago.

For the year, the company reported net sales of $60.205 million compared to $56.561 million a year ago. Loss from operations was of $6.238 million compared to $5.859 million a year ago. Loss before income tax was of $5.135 million compared to $1.928 million a year ago. Net loss was $6.145 million or $0.24 per basic and diluted share compared to $2.986 million or $0.12 per basic and diluted share a year ago.

The company provided earnings guidance for the first quarter of 2018. Due to market seasonality, revenue in first quarter of 2018 is expected to range between negative 2% and negative 8% compared to fourth quarter of 2017. The company guiding the gross margin will be in the range of 49% to 51% and is mainly from the product mix. R&D expense, excluding stock-based compensation, should be $4.5 million to $5 million. SG&A should be $4.3 million to $4.7 million, excluding stock-based compensation expense. Non-operating income should be in the range of $150,000 to $250,000 in the first quarter. Based on the service income of subsidiaries in different countries, The company expects tax amount to be in the range of $200,000 to $300,000 in the first quarter.