Micrel Posts Record Third Quarter Revenue and Earnings
SAN JOSE, Calif., Oct. 22 /PRNewswire/ -- Micrel, Incorporated
(Nasdaq: MCRL) today reported record revenues and earnings for the quarter
ended September 30, 1998. Net revenues increased 30 percent to $35.4 million,
up from $27.2 million for the same quarter in the prior year, reflecting
continued strong demand for the Company's products. Earnings increased at an
even greater rate on a year-to-year basis. Net income increased 48 percent to
$6.6 million, up from $4.5 million for the same quarter a year ago. Diluted
earnings per share for the quarter ended September 30, 1998 were $0.31 on
21.1 million shares, compared with $0.21 per share on 21.1 million shares for
the third quarter of 1997.
Revenues were up 3 percent and earnings were up 5 percent from the prior
quarter ended June 30, 1998. "This marks our tenth consecutive quarter of
revenue and earnings growth and our 18th consecutive quarter of gross margin
improvement," said Ray Zinn, President and CEO. "Market demand for our
products in computer, telecommunications and industrial markets drove overall
shipments to record levels in the third quarter. While it is estimated that
the standard linear IC market has declined third quarter year-over-year about
20 percent, Micrel has grown 30 percent over this same period. I believe that
the great performance accomplished during the first three quarters of 1998
further underscores Micrel's ability to respond quickly to changing market
conditions," said Zinn.
"I am pleased that Micrel has been able to achieve record quarterly
revenues and earnings during this difficult period in our industry," said Ray
Zinn.
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 business conditions in the computer,
telecommunications and industrial markets, the impact of competitive products
and pricing and alternative technological advances, the Asian financial
situation, 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 December 31, 1997.
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), USB and PCMCIA power controllers, switch mode power supply controllers
(SMPS), operational amplifiers and comparators, charge pumps, voltage
references, latched drivers and RF devices. Applications for Micrel products
include notebook, desktop and palmtop computers, computer peripherals,
cellular phones, process controls, telecommunications equipment, consumer
electronics, electronic testers, industrial and medical instruments, factory
automation and avionics.
For further information, contact Robert J. Barker at Micrel, Incorporated,
1849 Fortune Drive, San Jose, California 95131, 408-944-0800 or visit our
Website at micrel.com.
MICREL SEMICONDUCTOR
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Net revenues $35,426 $27,203 $102,587 $73,643
Cost of revenues 15,714 12,660 45,790 34,817
Gross margin 19,712 14,543 56,797 38,826
Operating expenses:
Research and development 4,741 3,532 13,564 9,916
Selling, general and
administrative 5,273 4,473 16,018 12,087
Total operating expenses 10,014 8,005 29,582 22,003
Income from operations 9,698 6,538 27,215 16,823
Other income, net 297 230 1,000 670
Income before income taxes 9,995 6,768 28,215 17,493
Provision for income taxes 3,398 2,301 9,593 5,948
Net income $6,597 $4,467 $18,622 $11,545
Diluted net income per share $0.31 $0.21 $0.88 $0.56
Shares used in computing
diluted net income per share 21,133 21,054 21,141 20,775
MICREL SEMICONDUCTOR
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
1998 1997
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term investments $28,814 $20,146
Accounts receivable 24,806 16,938
Inventories 11,999 10,664
Other current assets 6,715 5,176
Total current assets 72,334 52,924
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET 47,996 32,423
OTHER ASSETS 197 180
TOTAL $120,527 $85,527
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES $19,701 $11,230
LONG-TERM OBLIGATIONS 6,327 3,729
SHAREHOLDERS' EQUITY:
Common stock 33,000 27,703
Net unrealized gains on short-term investments 12 --
Retained earnings 61,487 42,865
TOTAL SHAREHOLDERS' EQUITY 94,499 70,568
TOTAL $120,527 $85,527
(1) Derived from the December 31, 1997 audited balance sheet
included in the 1997 Annual Report on Form 10-K of Micrel, Inc.
SOURCE Micrel, Incorporated
CO: Micrel, Incorporated
ST: California
IN: CPR
SU: ERN
10/22/98 08:58 EDT prnewswire.com |
