Micrel Reports 2009 Fourth Quarter and Full Year Financial Results
Micrel, Inc. announced financial results for the fourth quarter and full year ended December 31, 2009. Fourth quarter revenues of $61.2 million increased by $2.4 million, or 4.0%, from $58.9 million in the third quarter of 2009 and were at the high-end of the company’s fourth quarter revenue guidance range, which anticipated a 1% to 5% sequential increase. Compared to the same period last year, revenues were higher by $6.1 million, or 11.0%. The sequential increase in revenue was due to strength in several end markets of the company’s business, with primary growth coming from stronger demand in the industrial and communications end markets. The year-over-year increase in revenues was due to higher overall demand from customers in nearly all geographies except Europe as part of a recovery from the recent worldwide economic crisis that significantly impacted most consumer-related markets.
Fourth quarter 2009 GAAP net income of $4.1 million, or $0.07 per diluted share compares to third quarter 2009 GAAP net income of $6.8 million, or $0.11 per diluted share, and GAAP net income of $4.9 million or $0.07 per diluted share in the same period in 2008. Included in the fourth quarter 2009 GAAP net income is a non-cash pre-tax charge of $6.5 million related to the impairment of certain manufacturing equipment at the company’s San Jose fabrication facility. Fourth quarter 2009 non-GAAP net income of $8.7 million, or $0.14 per diluted share compares to third quarter 2009 non-GAAP net income of $7.6 million, or $0.12 per diluted share, and non-GAAP net income of $6.3 million, or $0.09 per diluted share in the same period in 2008.
For the year ended December 31, 2009, revenue was $218.9 million, compared to revenue of $259.4 million in 2008. GAAP net income for 2009 was $16.3 million, or $0.26 per diluted share, compared with GAAP net income of $28.3 million, or $0.40 per diluted share in 2008. Non-GAAP net income in 2009 was $22.9 million, or $0.36 per diluted share, compared with non-GAAP net income of $34.4 million, or $0.49 per diluted share in 2008. Gross margins for 2009 were 52% compared to 55% in 2008.
"With the recovery of the semiconductor industry underway, I continue to be encouraged by Micrel’s solid operating performance and improved customer demand," stated Ray Zinn, President and CEO of Micrel. "Driven by the strength of the industrial and communications end markets, fourth quarter revenues grew to $61.2 million – a 4% increase when compared to the prior quarter and 11% higher than last year’s fourth quarter. Gross margins also improved in the fourth quarter to 53.3% from 52.5% in the last quarter. In addition, bookings were very strong, with a fourth quarter book-to-bill ratio significantly above one. In fact, our book-to-bill ratio remained above one during each quarter of 2009."
Zinn continued, "To bolster our results as the industry recovers, we continue to be keenly focused on reducing costs and improving operating efficiencies. During the quarter, the company recorded one-time $6.5 million non-cash, pre-tax charge related to the impairment of certain manufacturing equipment located at our San Jose fabrication facility. This impairment charge had the effect of reducing GAAP earnings by $0.06 per diluted share. While this charge impacted fourth quarter net income, we expect to realize an improvement in Micrel’s gross margins in future quarters due to improved capacity utilization and a reduction in operating expenses. We do not believe the removal of this equipment will have any negative impact on the company’s ability to meet its revenue outlook for the foreseeable future."
The company also announced that Micrel’s Board of Directors has authorized a quarterly cash dividend of $0.035 per share of common stock. The payment of this dividend will be made on February 24, 2010, to shareholders of record as of February 10, 2010.
