Tuesday, March 31, 2009

MEMSIC 10K

Revenue by end market:
  • Mobile phone: $7.6M (37.9%)
  • Consumer: $5.3M (26.7%)
  • Automotive: $5.6M (28%)
  • Industrial/other: $1.5M (7.4%)
Our net sales decreased by 20.6% to $20.1 million in 2008 from $25.3 million in 2007. This decrease was due to a decrease in the number of units sold, primarily for mobile phone applications, which was partly offset by an increase in unit sales for automotive applications, and to reductions in the average selling price of our products, particularly in the mobile phone and consumer market in China.

Margin decline: "Until recently, our gross profit generally experienced growth in line with increases in our revenue. However, more recently, our gross margin has been decreasing from 67.0% in 2006, to 65.1% in 2007 and 47.9% in 2008. Our gross profit and gross margin are affected by a variety of factors, including average selling prices of our products, our product application mix, prices of wafers, excess and obsolete inventory, pricing by competitors, changes in production yields, and percentage of sales conducted through distributors."

Patent foundation: "As of December 31, 2008, we owned seven patents and had thirteen pending patent applications in the United States, and owned two patents and had twenty-four pending patent applications and assignment in China. As of that date, we also had one issued patent and six pending patent applications in Japan, five pending patent applications in Germany and two pending patent applications filed with the European Patent Office."