Micrel Reports First Quarter 2002 Results
- Bookings Increase over 20% Sequentially - Book-to-Bill Above 1.0 for First Time Since Q3 2000 - 2nd Consecutive Quarter of Sequential Revenue Growth - GAAP Loss of $0.04 Per Share; Pro Forma Loss of $0.02 Per Share
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SAN JOSE, Calif., April 22 /PRNewswire-FirstCall/ -- Micrel, Incorporated (Nasdaq: MCRL - news) today reported total revenues for the first quarter ended March 31, 2002 of $48.3 million, an increase of 3% from the fourth quarter of 2001 and 36% below the $75 million revenue level of the year ago period.
First quarter bookings increased by more than 20% on a sequential basis, with growth recorded in all geographic regions and all major product areas. The strength in new order rates during the first quarter resulted in a book-to-bill ratio above 1.0 for the first time since the third quarter of 2000.
In accordance with generally accepted accounting principals (GAAP), the Company recorded a net loss in the first quarter of $4.0 million or $0.04 cents per basic share. Included in the GAAP results is amortization of $3.4 million of pre-tax stock compensation expense, equivalent to $0.02 cents per share. The Company recorded net income of $1.3 million, or $0.01 cent per diluted share in the fourth quarter of 2001, and net income of $9.7 million, or $0.10 cents per diluted share in first quarter of 2001.
The Company also presents its results on a pro forma basis to assist investors in analyzing ongoing operating results. In the first quarter, the Company posted a pro forma net loss of $1.6 million, or $0.02 cents per basic share, compared to a pro forma net loss of $1.1 million, or $0.01 cent per share in the fourth quarter of 2001, and a pro forma profit of $15.5 million, or $0.16 per diluted share in the year ago period. Pro forma results exclude non-cash deferred stock compensation expense, non-recurring other income in the first quarter of 2002 and related income tax effects. Please refer to the attached tables for further information.
``We are encouraged that order rates improved during the first quarter as predicted,'' stated Ray Zinn, President and CEO of Micrel. ``We anticipated that order rates would begin to recover to end use consumption levels as our customers reduced inventories to match shorter lead times. The fact that we have had two consecutive quarters of revenue growth is indicative that the bottom of this cycle has been reached.''
Micrel's continued investment in new product development resulted in the release of 24 new ``Best-in-Class'' products in the third quarter. This included a new family of power supply controllers to support distributed power systems where higher voltages must be converted to lower logic voltage levels at the point of load. The MIC2193/4/6 family are ideally suited for this purpose with conversion efficiencies over 93% and with the flexibility to either step-up or step-down voltages at high current levels. For the optical module market, the Company introduced the SY88953 10Gbps Limiting Amplifier, the first of a three chip set optimized for Metropolitan Area Network applications supporting the OC-192 standard.
``We are encouraged with the strength in new orders and growth in revenue in the first quarter,'' stated Ray Zinn. ``We believe that semiconductor order rates will continue to improve during the second quarter as customer purchases come into alignment with true consumption. Although we are optimistic, the low level of backlog and high turns fill requirement continue to make it difficult to predict future results. However, if Micrel is able to achieve roughly the same turns fill rate as it experienced in Q1, second quarter revenue could grow at a double digit rate for the first time since the third quarter of 2000.''
Ray Zinn continued, ``We believe the resumption of growth in the global economy will spur improvement in business confidence, which will be a key factor in determining the timing and strength in the recovery of end market demand in the second half of 2002. Historically, the second half of the year is a seasonally stronger period for semiconductor shipments. Consequently, we believe that revenue will continue to increase through the rest of 2002 assuming that growth in end market demand resumes as anticipated.'' |
