Micrel posts revenue of $55.2 million for the 4th Q 08, 18% down from previous quarter

Micrel has announced fourth quarter revenue of $55.2 million, down by 18% in comparison to $67.5 million in the third quarter, and down by 15%, from $64.6 million in the same period last year. The sequential and year-over-year decrease in revenues was due to the continued reduction in overall demand from customers in nearly all geographies, as a result of the worldwide financial crisis that has significantly impacted all consumer related markets.

Fourth quarter 2008 GAAP net income of $4.9 million, or $0.07 per diluted share compares with third quarter 2008 GAAP net income of $7.7(1) million, or $0.11(1) per diluted share, and GAAP net income of $8.4 million or $0.11 per diluted share in the same period in 2007. Fourth quarter 2008 non-GAAP net income was $6.3 million, or $0.09 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, proxy contest expenses, restructuring charges and credits, other income related to litigation settlements and their related tax effects.

For the year ended December 31, 2008, revenue was $259.4 million, compared to revenue of $258.0 million in 2007. GAAP net income for fiscal 2008 was $28.3 million, or $0.40 per diluted share, compared with GAAP net income of $44.1(1) million, or $0.57 per diluted share in 2007. 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 $0.12 per diluted share. Non-GAAP net income in 2008 was $34.4 million, or $0.49 per diluted share, compared with non-GAAP net income of $39.2(1) million, or $0.51 per diluted share in 2007. Gross margins for 2008 were 55% compared to 57% in 2007.

"The economic downturn and its impact on demand from our customers were more dramatic than we originally anticipated," said Ray Zinn, President and CEO of Micrel. "As market conditions continued to weaken during the quarter, nearly all of our customers significantly reduced their orders and took actions to lower inventories. While this impacted our results in the quarter, I continue to be pleased with our operating execution and expense management. During the fourth quarter, total operating expenses were 10% lower than the third quarter. The Company has also maintained its quarterly dividend and stock repurchase programs. I am confident that we are taking the right steps to weather the current economic storm and prosper once market conditions stabilize."

For the first quarter of 2009, the Company estimates that revenues will decline between minus 12% to minus 17% on a sequential basis. Gross profit margin is expected to range between 50% to 51%. ?In addition, the Company estimates that GAAP net income will be approximately $0.01 to $0.03 per diluted share.