- Revenues of $59.9 million, compared to $60.0 million for the fourth quarter of 2013
- GAAP net income of $2.3 million, or $0.04 per diluted share, compared to $3.4 million, or $0.06 per diluted share for the fourth quarter of 2013
- Non-GAAP net income of $3.7 million, or $0.07 per diluted share, compared to $4.8 million, or $0.08 per diluted share for the fourth quarter of 2013
- Gross margin of 52.2%, compared to 50.7% for the fourth quarter of 2013
- Repurchased 0.3 million shares of Micrel common stock for a total of $3.0 million for the quarter
- Declares quarterly dividend of $0.05 per share
Micrel, Incorporated (
Revenues for the first quarter of 2014 were $59.9 million, a $0.1 million or 0.2% decrease, compared to $60.0 million for the fourth quarter of 2013. Compared to the first quarter of 2013, revenues were $0.1 million, or 0.2% higher.
GAAP net income was $2.3 million, or $0.04 per diluted share for the first quarter of 2014, compared to net income of $3.4 million, or $0.06 per diluted share, for the fourth quarter of 2013, and net income of $5.2 million, or $0.09 per diluted share, for the first quarter of 2013.
Non-GAAP net income was $3.7 million, or $0.07 per diluted share for the first quarter of 2014, compared to net income of $4.8 million, or $0.08 per diluted share, for the fourth quarter of 2013, and net income of $6.5 million, or $0.11 per diluted share, for the first quarter of 2013. A reconciliation of the GAAP net income to non-GAAP net income is provided in the financial tables at the end of this press release. Non-GAAP results exclude the impact of share-based compensation, restructuring charges, amortization of acquisition-related intangible assets with the related income tax effects and R&D tax credit. The non-GAAP net income for the fourth quarter of 2013 and the first quarter of 2013 have been revised from previously reported to exclude the impact of acquisition-related intangible assets and the related tax effect to conform with the current period presentation.
Commenting on the first quarter 2014 results, Micrel's President and CEO Ray Zinn said, "Revenues of $59.9 million during the first quarter benefited from higher sales of Micrel's products to the communications, industrial, consumer and computing end markets but this strength was offset by an expected weakness in the wireless handset end market. Operationally, first quarter gross margin improved sequentially to 52.2% from 50.7%. We are pleased with this improvement in gross margin especially in light of our reduction in inventory. Subsequent to our earnings call in January, and in line with our commitment to increase revenue growth, we expedited certain process development and product design activity which had a minor impact on earnings. While the tepid pace of the macro-economic recovery continues to create headwind for the semiconductor industry, I am encouraged by the strength of Micrel's bookings which have yielded a book-to-bill ratio above one for the first quarter. In addition, we remain focused on increasing shareholder value through our stock repurchase program and quarterly dividend payments. During this past quarter, Micrel spent $3.0 million to repurchase approximately 0.3 million shares of common stock and we also maintained our quarterly dividend of $0.05 per common share to shareholders of record as of May 8, 2014."
Mr. Zinn continued, "Micrel continues to strategically invest in research and development and I am excited about the growth potential of new products introduced this past quarter and the significant new product pipeline for the remainder of 2014. Based on our current projections, revenue in the second quarter of 2014 is anticipated to be in the range of up 3% to up 9% on a sequential basis. Gross margins are expected to be in the range of 52% to 53%, resulting in GAAP earnings within the range of $0.05 to $0.10 per diluted share," Mr. Zinn concluded.
The Company announced today that Micrel's Board of Directors has authorized a quarterly cash dividend of $0.05 per share of common stock. The payment of this dividend will be made on May 22, 2014 to shareholders of record as of May 8, 2014.
Share Repurchase Plan
In the first quarter of 2014, the Company repurchased 0.3 million shares for a total of $3.0 million. At March 31, 2014, Micrel had approximately $22.8 million remaining under the current repurchase authorization. Stock repurchases may occur from time to time in the open market or in privately negotiated transactions; provided that the repurchases are made in accordance with the terms of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing and amount of any repurchase of shares will be determined by the Company's management, based on its evaluation of market conditions, cash on hand and other factors. The authorization will stay in effect until the aggregate authorized amount is expended or the authorization is modified by the Board of Directors.
The Company will host a conference call today, April 24, 2014, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). President and Chief Executive Officer, Raymond Zinn, and Chief Financial Officer, Bob DeBarr, will present an overview of the 2014 first quarter financial results, discuss current business conditions and then respond to questions.
The call is available, live, to any interested party, on a listen-only basis, by dialing (877) 407-0789. For international callers, please dial (201) 689-8562. A live webcast will also be available at the 'Investors' section of Micrel's website at: www.micrel.com. An audio replay of the conference call will be available for all interested parties through May 1, 2014, by dialing (877) 870-5176 and entering the participant code 13580147. For international callers, please dial (858) 384-5517 and enter participant code 13580147. The webcast replay will also be available on the Company's website.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release includes statements that qualify as forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements about the following topics: future financial results, including revenues, customer demand and inventories, order lead times, backlog, turns-fill requirements, net income, earnings per share, gross margin, average selling prices, the effect of cost-control efforts, use of free cash flow, stock buyback and dividend programs, supply chain constraints, channel inventory levels and trends, capacity utilization, development of new products, design wins and customer order patterns, and the nature and extent of macro-economic and industry trends. Forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially. Those risks and uncertainties include, but are not limited to, such factors as: softness in demand for our products; customer decisions to cancel, reschedule, or delay orders for our products; the effect that lead times and channel inventories have on the demand for our products; economic or financial difficulties experienced by our customers; the effect of business conditions in the computing, wireless, telecommunications and industrial markets; the impact of any previous or future acquisitions; challenges involving integration of acquired businesses and utilization of acquired technology, market adoption, revenue growth and margins of acquired products; changes in demand for the Company's products; the impact of competitive products and pricing and alternative technological advances; the accuracy of estimates used to prepare the Company's financial statements and forecasts; the global economic situation; the ability of the Company's vendors and subcontractors to supply or manufacture the Company's products in a timely manner; the timely and successful development and market acceptance of new products and upgrades to existing products; softness in the economy and the U.S. stock markets as a whole; fluctuations in the market price of Micrel's common stock and other market conditions; the difficulty of predicting our future cash needs; the nature of other investment opportunities available to the Company from time to time; Micrel's operating cash flow, and economic and industry projections. For further discussion of these risks and uncertainties, please refer to the documents the Company files with the SEC from time to time, including the Company's Annual Report on Form 10-K for the year ended December 31, 2013. All forward-looking statements are made as of today, and the Company disclaims any duty to update such statements.