Micrel Reports Fourth Quarter & Fiscal 2007 Financial Results
Micrel, Inc. announced financial results for the fourth quarter and fiscal year ending December 31, 2007. Revenues for the fourth quarter totaled $64.6 million, compared to $65.2 million for the third quarter and $64.5 million posted in the year-ago period. Fourth quarter GAAP net income was $8.4 million, or $0.11 per diluted share. This compares with third quarter 2007 GAAP net income of $9.4 million, or $0.12 per diluted share, and GAAP net income of $8.8 million, or $0.11 per diluted share, in the year ago period.
Fourth quarter 2007 non-GAAP net income was $9.4 million or $0.12 per diluted share. This compares to non-GAAP net income of $10.5 million, or $0.14 per diluted share in the previous quarter and $10.2 million, or $0.13 per diluted share in the fourth quarter of 2006. Non-GAAP results exclude the impact of revenues and cost of revenues related to intellectual property settlements, stock-based compensation expense, other operating income and expense items, restructuring expenses, other income related to litigation settlements and their related tax effects.
For the year ended December 31, 2007, revenues were $258.0 million, compared with $276.3 million in 2006. GAAP net income for fiscal 2007 increased 15.8% to $44.4 million, or $0.57 per diluted share, compared with GAAP net income of $38.3 million, or $0.46 per diluted share in 2006. GAAP net income in 2007 was the second highest annual result in the company’s history. Included in 2007 net income was a $15.5 million pre-tax gain associated with a first quarter legal settlement, which after income taxes, is equivalent to $0.13 per diluted share. Non-GAAP net income in 2007 was $39.5 million, or $0.51 per diluted share, compared with non-GAAP net income of $45.3 million, or $0.55 per diluted share in 2006. Micrel’s 2007 gross margin of 57% matched the second highest level in the company’s history.
"Micrel’s solid 2007 earnings and strong cash flows from operations continued to bolster the company’s financial strength throughout the year," stated Ray Zinn, President and CEO of Micrel. "Momentum generated from recent design wins coupled with a broad array of new products released during 2007 gives Micrel a strong platform to generate growth in revenues and net income going forward. Solid cash flows from operations of $67.8 million during 2007 enabled the repurchase of 5.5 million shares of common stock and the commencement of a dividend payment to shareholders, representing our confidence in the company’s operating performance and commitment to enhancing shareholder value."
