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Micrel Earnings Rise

Guidance is mixed.

Micrel

(MCRL)

, a manufacturer of IC solutions for the analog, ethernet and high bandwidth markets, said its third-quarter earnings rose 52.9%, helped by higher sales and improved margins.

The company earned $11.8 million, or 15 cents a share, in the quarter, compared with $7.7 million, or 9 cents a share, a year ago. Adjusted for items, earnings were $12.3 million, or 15 cents a share. Analysts polled by Thomson First Call were expecting earnings of 11 cents a share.

Third-quarter revenue rose 17.6% from a year ago to $73.5 million as against analysts' estimate of $70.7 million.

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The San Jose, Calif.-based company expects earnings of 11 cents to 13 cents a share, on revenue of $67 million to $70.5 million in the fourth quarter, as against analysts' expectation of 12 cents a share, on revenue of $72.9 million.

"We are encouraged with the resurgence in Micrel's wireless handset business. While our wireline communication business has softened in the second half of 2006, we expect this business to rebound in the first quarter of 2007," the company said.

Second-quarter gross profit rose 27.3% from a year ago to $73.5 million and gross margin increased 450 basis points to 58.6%. Operating income for the quarter rose to $18.1 million, compared with $10.8 million, a year ago, while operating margin jumped to 24.6%, compared with 17.3%, a year ago.

The company's shares were trading down 14 cents, or 1.3%, at $10.73 Friday.

This story was created through a joint venture between TheStreet.com and IRIS.