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Micrel Beats Estimate Despite Plummeting Earnings

Micrel reported an 81% drop in earnings due to lower revenue, but $0.02 per share was enough to beat the most recent estimate.

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reported on April 23, 2009 that its earnings for Q1 FY09 plummeted 81.4% year-over-year to $1.55 million or $0.02 per share on lower revenue. Excluding one-time items, earnings slumped 77.8% to $2.04 million or $0.03 per share, beating the most recent consensus estimate of $0.01 per share.

Total revenue dropped 28.9% to $46.99 million from $66.05 million in the year-ago quarter, due to reduced demand as a result of the worldwide financial crisis. Standard product sales accounted for 97.0% of total revenue, while foundry and custom product sales comprised 3.0%. Looking at the company's sales mix, analog, high bandwidth, ethernet and foundry constituted 70.0%, 15.0%, 14.0%, and 1.0% of the total sales, respectively. Meanwhile, in terms of endmarket, wireline communications, wireless handsets, computing, industrial, military and other contributed 30.0%, 16.0%,13.0%, 37.0%, and 4.0% to total sales, respectively. Geographically, North America, Asia, and Europe constituted 27.0%, 59.0%, and 14.0% of the total sales, respectively.

MCRL re-purchased 1.95 million shares for $12.40 million. Additionally, it entered into a technology and business partnership with Cyan to develop Industrial RF Modules. It also launched a new family of White LED drivers that extends mobile handset talk time by up to 32.0%., and it introduced a new member to its high power density family of products, MIC22700, a high efficient 7A integrated synchronous buck (step-down) regulator. Recently, it announced a dividend of $0.035 per share, payable on May 27, 2009.

Looking forward to Q2 FY09, Micrel expects revenues to increase 1.0% to 6.0%, sequentially. Furthermore, it predicts GAAP EPS to be in the range of $0.02 to $0.03 per share.