Micrel, Incorporated announced financial results for the quarter ended March 31, 2014. 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.
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."
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.
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 also announced 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.
In the first quarter of 2014, Micrel 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.
