Micrel Reports 2012 Second Quarter Financial Results
Micrel, Inc. announced financial results for the second quarter ended June 30, 2012. Second quarter revenues totaled $63.7 million, an increase of $2.5 million, or 4.2%, from $61.2 million in the first quarter of 2012. The sequential quarter increase in revenues during the second quarter is primarily due to strong sales of high bandwidth products along with the integration of PhaseLink™ which was acquired by the Company in early April.
Second quarter 2012 GAAP net income of $6.0 million, or $0.10 per diluted share, compares to first quarter 2012 GAAP net income of $5.4 million, or $0.09 per diluted share, and GAAP net income of $10.7 million, or $0.17 per diluted share in the same period in 2011.Second quarter 2012 non-GAAP net income of $7.3 million, or $0.12 per diluted share, compares to first quarter 2012 non-GAAP net income of $6.6 million, or $0.11 per diluted share, and non-GAAP net income of $11.6 million, or $0.18 per diluted share in the same period in 2011. A reconciliation of the GAAP net income to non-GAAP net income is provided in the financial tables at the end of this press release.Non-GAAP results exclude the impact of stock-based compensation expense and the related tax effects.
Commenting on the second quarter performance, Micrel’s President and CEO Ray Zinn said, "Micrel overcame a very challenging global economic environment to generate sequential revenue growth of 4.2% in the second quarter. Revenues of $63.7 million during the quarter benefited from strong sales of the Company’s timing and communications products, including contributions from the recent acquisition of PhaseLink. This growth was moderated by weaker than expected demand from our sell-through distributors primarily in Europe. Operationally, the better than expected gross margin of 55.2% benefited from a richer mix of higher-margin products and improved factory utilization.In addition, our commitment to product development continues to bear fruit as evidenced by our recent design wins, new product introductions and a book-to-bill ratio that was solidly over 1:1 during the second quarter."
"Importantly," Mr. Zinn emphasized, "Micrel continues to operate from a position of financial strength.Cash flow from operating activities improved in the quarter, and our cash, cash equivalents and short term investments balance was $119.4 million, or $1.96 per diluted share.Our balance sheet provides Micrel with significant financial flexibility to re-invest in our business and create long-term shareholder value.In addition to completing the acquisition of PhaseLink, during the second quarter we maintained our quarterly cash dividend as well as repurchased approximately 872,000 shares of Micrel common stock for a total of $8.7 million."