Micrel ( MCRL), a manufacturer of IC solutions for the worldwide analog, ethernet and high bandwidth markets, said its second-quarter earnings rose more than seven folds, boosted by strong demand and improved margins. The company earned $9 million, or 11 cents a share, in the quarter, compared with $1.2 million, or 1 cent a share, a year ago. Adjusted for items, earnings were $12 million, or 14 cents a share. Analysts polled by Thomson First Call were expecting earnings of 11 cents a share. Second-quarter revenue rose 13% from a year ago to $70.2 million, against analysts estimate of $71 million. The San Jose, Calif.-based company expects revenue of $70 million to $72 million in the third quarter. Analysts were expecting revenue of $73.9 million. Second-quarter gross profit rose 25.2% from a year ago to $40.3 million and gross margin increased 556 basis points to 57.4%. Operating income for the quarter rose to $13.8 million and operating margin jumped to 19.7%, compared with 1.3%, a year ago. Shares rose $1.24 to $10.02.