Micrel Reports 2009 First Quarter Financial Results

Micrel, Inc. announced financial results for the first quarter ended March 31, 2009. First quarter revenue of $47.0 million decreased by $8.2 million, or 15%, from $55.2 million in the fourth quarter of 2008. First quarter revenues were lower by $19.1 million, or 29%, from $66.1 million in the same period last year.

According to the company, 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 economic crisis that has significantly impacted all consumer related markets.

First quarter 2009 GAAP net income of $1.5 million, or $0.02 per diluted share compared with fourth quarter 2008 GAAP net income of $4.9 million, or $0.07 per diluted share, and GAAP net income of $8.3 million or $0.12 per diluted share in the same period in 2008. First quarter 2009 non-GAAP net income was $2.0 million, or $0.03 per diluted share.

"In spite of the global economic downturn that continues to reduce demand and cause customers to maintain lean inventory levels, I am pleased with our first quarter financial performance given the economic conditions we faced," stated Ray Zinn, President and CEO of Micrel. "First quarter revenues of $47 million and gross margins of 50% were each within expectations. I am encouraged by our first quarter bookings, which rebounded significantly on a sequential quarterly basis, yielding a book-to-bill ratio above one for the quarter. Driven by the strength of customer orders in Asia, this was the highest book to bill in the past three quarters, suggesting that we may have reached a trough in the current macroeconomic cycle. In addition, we continued to be focused on increasing shareholder value through our stock repurchase program and quarterly dividend payment. Micrel spent $12.4 million to repurchase 1.95 million shares of common stock during the first quarter and we also declared a quarterly dividend of $0.035 per common share to shareholders of record as of May 13, 2009."