Micrel, Inc. announced financial results for the first quarter ended March 31, 2010. First quarter revenues of $67.2 million increased by $6.0 million, or 9.7%, up from $61.2 million in the fourth quarter of 2009. The sequential increase in revenue was primarily due to improved demand in the industrial and communications end markets. Compared to the same period last year, revenues were higher by $20.2 million, or 43.0%, due to higher overall demand from customers in all geographies and end markets. According to the company, this accomplishment is reflective of a global recovery from the recent worldwide economic crisis that significantly impacted most consumer-related markets.
First quarter 2010 GAAP net income of $9.7 million, or $0.16 per diluted share compares to fourth quarter 2009 GAAP net income of $4.1 million, or $0.07 per diluted share, which includes $0.06 per diluted share of restructuring expense, and GAAP net income of $1.5 million or $0.02 per diluted share in the same period in 2009. First quarter 2010 non-GAAP net income of $10.4 million, or $0.17 per diluted share compares to fourth quarter 2009 non-GAAP net income of $8.7 million, or $0.14 per diluted share, and non-GAAP net income of $2.0 million, or $0.03 per diluted share in the same period in 2009.
"We are off to a good start in 2010. This is Micrel’s fourth consecutive quarter of revenue growth since the recession bottomed for the company in the first quarter of 2009. Demand from customers serving the industrial and communications end markets resulted in strong bookings and solid revenue growth as the company continues to participate in the recovery of the semiconductor industry," stated Ray Zinn, president and CEO of Micrel. "During the first quarter, our book-to-bill ratio was the second best it has been in the company’s history resulting in a robust backlog. Given the current environment we do not anticipate the order cancellations and inventory overbuild that we experienced at the end of the dot-com bubble. I am also pleased to report that we achieved a first quarter gross margin of 55.4%, which marks the fourth quarter in a row of sequential gross margin improvement for Micrel. Moreover, our operating margin of 22.2% in the first quarter increased significantly from recent prior periods. This continued margin expansion demonstrates our execution and focus on cost containment, the leverage inherent in our business model and our ability to generate profitable growth. Finally, we are quite encouraged that we have resumed hiring in our manufacturing area. Since the end of last year, we have increased our manufacturing headcount by approximately 15% to meet increasing customer demand."
