Micrel Lowers Revenue and Profit Forecast for Third Quarter

Micrel Inc. (San Jose, CA) lowered its revenue and profit forecast for the September quarter, anticipating a sequential decline of 1% to 3%. The company had originally forecast sequential growth of 6% to 10%. Micrel now projects third-quarter revenues to be approximately $67 million to $68 million. As a result of revised revenue projections, the company anticipates third-quarter gross margins to range from 48% to 50% and operating expenses to be approximately $23 million.

"During the third quarter we have noted a more cautious sentiment from many of our customers, especially those in the wireline infrastructure and enterprise computing end markets," stated Micrel President and CEO Ray Zinn. "It now appears that the rapid growth rate that the semiconductor industry experienced in the first half of this year was augmented by increasing lead times in addition to underlying growth in end demand."