Micrel Reports 2011 Fourth Quarter and Full Year-End Financial Results

Micrel, Inc. announced financial results for the fourth quarter and full year ended December 31, 2011.

Fourth quarter revenues of $58.8 million decreased by $5.5 million, or 8.5 percent, from $64.2 million in the third quarter of 2011. The sequential decrease in revenues was primarily due to lower demand across the Company’s product lines. Compared to the same period last year, revenues were lower by $16.9 million, or 22.3 percent, due to lower overall demand from customers in most geographies and end markets.

Fourth quarter 2011 GAAP net income of $5.0 million, or $0.08 per diluted share, compares to third quarter 2011 GAAP net income of $9.2 million, or $0.15 per diluted share, and GAAP net income of $13.7 million, or $0.22 per diluted share in the same period in 2010. Fourth quarter 2011 non-GAAP net income of $6.1 million, or $0.10 per diluted share, compares to third quarter 2011 non-GAAP net income of $10.2 million, or $0.16 per diluted share, and non-GAAP net income of $14.5 million, or $0.23 per diluted share in the same period in 2010.

For the year ended December 31, 2011, revenue was $259.0 million, compared to revenue of $297.4 million in 2010. GAAP net income for 2011 was $34.0 million, or $0.55 per diluted share, compared with GAAP net income of $50.7 million, or $0.81 per diluted share in 2010. Non-GAAP net income in 2011 was $37.8 million, or $0.60 per diluted share, compared with non-GAAP net income of $53.8 million, or $0.85 per diluted share in 2010. Gross margin for 2011 was 55.3% compared to 56.8% in 2010.

"The moderation in orders that we began to see toward the end of our second quarter continued throughout our fourth quarter across all end markets," commented Ray Zinn, president and CEO of Micrel. "Gross margin declined in the quarter to 50.5% primarily due to a mix shift to lower margin products and lower factory capacity utilization as we attempt to reduce inventories. During the quarter, we recognized approximately $0.02 per share for income tax benefits."

"Our fourth quarter book-to-bill ratio was below one. We continue to maintain a strong balance sheet and ended the year with cash, cash equivalents and short term investments of $138 million, or $2.25 per share at the end of the fourth quarter. We repurchased approximately 762,000 shares during the quarter for a total of $7.8 million. For the full year 2011, we repurchased approximately 1.9 million shares for a total of $20.3 million."