Micrel Reports 2008 Fourth Quarter & Full Year Financial Results
Micrel, Inc. announced financial results for the fourth quarter and full year ended December 31, 2008. Fourth quarter revenue of $55.2 million decreased by $12.4 million, or 18%, from $67.5 million in the third quarter. Fourth quarter revenues were lower by $9.4 million, or 15%, from $64.6 million in the same period last year. The sequential and year-over-year decrease in revenues was due to the continued reduction in overall demand from customers in nearly all geographies, as a result of the worldwide financial crisis that has significantly impacted all consumer related markets.
Fourth quarter 2008 GAAP net income of $4.9 million, or $0.07 per diluted share compares with third quarter 2008 GAAP net income of $7.7 million, or $0.11 per diluted share, and GAAP net income of $8.4 million or $0.11 per diluted share in the same period in 2007. Fourth quarter 2008 non-GAAP net income was $6.3 million, or $0.09 per diluted share.
For the year ended December 31, 2008, revenue was $259.4 million, compared to revenue of $258.0 million in 2007. GAAP net income for fiscal 2008 was $28.3 million, or $0.40 per diluted share, compared with GAAP net income of $44.1 million, or $0.57 per diluted share in 2007. Included in 2007 net income was a $15.5 million pre-tax gain associated with a first quarter legal settlement, which after income taxes, is equivalent to $0.12 per diluted share. Non-GAAP net income in 2008 was $34.4 million, or $0.49 per diluted share, compared with non-GAAP net income of $39.2 million, or $0.51 per diluted share in 2007. Gross margins for 2008 were 55% compared to 57% in 2007.
"The economic downturn and its impact on demand from our customers were more dramatic than we originally anticipated," said Ray Zinn, President and CEO of Micrel. "As market conditions continued to weaken during the quarter, nearly all of our customers significantly reduced their orders and took actions to lower inventories. While this impacted our results in the quarter, I continue to be pleased with our operating execution and expense management. During the fourth quarter, total operating expenses were 10% lower than the third quarter. The company has also maintained its quarterly dividend and stock repurchase programs. I am confident that we are taking the right steps to weather the current economic storm and prosper once market conditions stabilize."
"Our customers continue to place orders to satisfy short-term demand and our visibility into longer-term customer demand continues to be limited due to short order lead times. During the fourth quarter, total bookings were less than revenues as our distributors continued to decrease inventory levels. However, the lean inventory levels coupled with pressure on the semiconductor industry to pull back its own inventories should result in less pressure on pricing. In addition, I am pleased with our design win momentum. We will continue to introduce approximately the same number of world class products as we did in 2008, which should help partially offset the ongoing macroeconomic challenges."