Micrel Posts a Record 7th Consecutive Quarter of Double-Digit Revenue
and Earnings Growth
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 22, 1998--Micrel, Inc. (NASDAQ:MCRL - news) today reported record
revenues and earnings for the year ended Dec. 31, 1997, marking its 19th consecutive year of profitability.
For the year ended Dec. 31, 1997, net revenues increased 57 percent to $104.2 million, up from $66.2 million in the prior
year. Standard product sales increased 82 percent to $79.2 million in 1997 from $43.5 million in 1996. This increase in
standard product sales occurred primarily due to increased product demand in computer and telecom markets.
Net income for 1997 was $16.7 million, up 81 percent from $9.3 million for the year ended Dec. 31, 1996. Diluted earnings
per share for 1997 were $0.80 per share based on 20.8 million shares compared with $0.46 per share on 20.0 million shares
for the prior year.
For the fourth quarter ended Dec. 31, 1997, Micrel reported net sales of $30.5 million, up 57 percent from $19.4 million in
the same quarter a year ago. Net income for the quarter ended Dec. 31, 1997 was $5.2 million, an increase of 84 percent
from net income of $2.8 million for the fourth quarter of 1996.
Diluted earnings per share for the quarter ended Dec. 31, 1997 were $0.25 per share on 21.0 million shares, compared with
$0.14 per share on 20.4 million shares for the fourth quarter of 1996.
''Since December of 1994, when Micrel became a public company, the company has achieved a compound annual growth
rate of 56 percent on revenues and 120 percent on earnings,'' said Ray Zinn, President and CEO.
''We are very pleased with these results and are optimistic about Micrel's opportunities for continued growth. While we have
experienced some slowdown in Asian orders recently, we believe that growth in other revenue channels will be sufficient to
offset any slowdown in orders from our Asian customers.''
The statements contained in this release which are not historical facts may be considered forward-looking statements that are
subject to risk and uncertainties, including the effect of worldwide financial conditions, the business climate in the personal
computer industry and telecommunications industry, the impact of competitive products and pricing and alternative
technological advances, and the timely and successful development and market acceptance of new products and upgrades to
existing products. Further information regarding potential factors that could affect the company's results are included in the
company's Annual Report on Form 10-K for the year ended Dec. 31, 1996.
During the fourth quarter of 1997, the company adopted Statement of Financial Accounting Standards No. 128 ''Earnings Per
Share'' which requires restatement of all prior year earnings per share and presentation of basic and diluted earnings per share
in the financial statements. The company has presented diluted earnings per share in this press release because it most closely
correlates to previously reported earnings per share.
Micrel Semiconductor designs, manufacturers and markets high performance analog power ICs. It is a major supplier of linear
devices in IttyBitty(TM) subminiature packages. Micrel's products include low-dropout regulators (LDOs), PCMCIA power
controllers, switch mode power supply controllers (SMPS), FET switches, charge pumps, voltage references, oscillators,
miniature MOSFETs, and latch drivers.
Applications for Micrel products include notebook, desktop and palmtop computers, computer peripherals, cellular phones,
process controls, telecommunications equipment, electronic testers, industrial and medical instruments, factory automation and
avionics.
For further information contact Robert J. Barker at Micrel, Inc., 1849 Fortune Drive, San Jose, Calif. 95131, 408/944-0800
or visit us at micrel.com .
MICREL SEMICONDUCTOR
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
Net revenues $30,515 $19,403 $104,158 $66,244
Cost of revenues 13,824 9,442 48,641 32,407
------- ------- -------- -------
Gross margin 16,691 9,961 55,517 33,837
Operating expenses:
Research and development 4,070 2,519 13,986 8,613
Selling, general and
administrative 5,041 3,355 17,128 11,936
------- ------- -------- ------
Total operating expenses 9,111 5,874 31,114 20,549
Income from operations 7,580 4,087 24,403 13,288
Other income, net 301 200 971 730
------- ------- -------- ------
Income before income taxes 7,881 4,287 25,374 14,018
Provision for income taxes 2,679 1,458 8,627 4,766
------- ------- -------- ------
Net income $ 5,202 $ 2,829 $16,747 $ 9,252
Diluted net income
per share $ 0.25 $ 0.14 $ 0.80 $ 0.46
Shares used in computing
per share amounts 20,960 20,362 20,822 20,048
MICREL SEMICONDUCTOR
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
December 31, December 31,
1997 1996
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and
short-term investments $20,146 $16,573
Accounts receivable, net 16,938 8,748
Inventories 10,664 13,922
Other current assets 5,176 3,038
------- -------
Total current assets 52,924 42,281
EQUIPMENT AND LEASEHOLD
IMPROVEMENTS, NET 32,423 17,476
OTHER ASSETS 180 251
TOTAL $85,527 $60,008
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES $11,230 $9,303
LONG-TERM OBLIGATIONS 3,729 3,274
SHAREHOLDERS' EQUITY:
Common Stock 27,703 21,315
Retained earnings 42,865 26,116
Total Shareholders' Equity 70,568 47,431
TOTAL $85,527 $60,008
Contact:
Micrel, Inc.
Robert J. Barker, 408/944-0800 |
