Micrel Reports 2009 Second Quarter Financial Results

Micrel, Inc. announced financial results for the second quarter ended June 30, 2009. Second quarter revenues of $51.8 million increased by $4.8 million, or 10%, from $47.0 million in the first quarter of 2009. Second quarter revenues were lower by $18.8 million, or 27%, from $70.6 million for the same period last year. The sequential increase was primarily due to strength in all major segments of the company’s business with primary growth coming from markets in China. The year-over-year decrease in revenues was due to the reduction in overall demand from customers in nearly all geographies; a result of the worldwide economic slowdown that has significantly impacted all consumer related markets.

Second quarter 2009 GAAP net income of $3.9 million, or $0.06 per diluted share compares to first quarter 2009 GAAP net income of $1.5 million, or $0.02 per diluted share, and GAAP net income of $7.4 million or $0.10 per diluted share in the same period in 2008. Second quarter 2009 non-GAAP net income was $4.6 million, or $0.07 per diluted share. A reconciliation of the GAAP net income to non-GAAP net income is provided in the financial tables of this press release. Non-GAAP results exclude the impact of stock-based compensation expense and their related tax effects for the second quarter.

"This was an exceptional quarter for Micrel with growth at both the top and bottom line," stated Ray Zinn, president and CEO of Micrel. "We were encouraged by the increasing customer demand for Micrel’s products in the second quarter, which enabled the Company to generate sequential revenue growth for the first time in four quarters. Second quarter revenues of $51.8 million were better than expected and increased 10% compared to the prior quarter. In addition, second quarter bookings were also solid, with a book-to-bill ratio above one. Revenues and bookings in the quarter benefited from strong demand from markets in Asia, primarily related to the build-out of infrastructure to support 3G networks in China. I am also pleased with our operating execution and expense management in the quarter. As a result, net income dollars more than doubled on a sequential quarter basis, which reflects the operating leverage in our business model."

Zinn continued, "The company continues to be focused on increasing shareholder value through our stock repurchase program and quarterly dividend payment. During the second quarter, Micrel spent $20 million to repurchase 3.075 million shares of common stock and we also declared a quarterly dividend of $0.035 per common share to shareholders of record as of August 12, 2009."