Micrel, Inc. announced financial results for the third quarter ended September 30, 2010. Third quarter revenues of $80.6 million increased by $6.7 million, or 9.1%, up from $73.9 million in the second quarter of 2010. The sequential increase in revenues was primarily due to improved demand in the industrial and communications end markets.
Compared to the same period last year, revenues were higher by $21.8 million, or 37.0%, due to higher overall demand from customers in most geographies and end markets. This is said to be reflective of the company’s successful initiatives to penetrate new high-growth markets, the release of a significant number of new products that are gaining market traction, an expanded sales force, solid operational execution and improved macro-economic conditions.
Third quarter 2010 GAAP net income of $14.9 million, or $0.24 per diluted share, compares to second quarter 2010 GAAP net income of $12.4 million, or $0.20 per diluted share, and GAAP net income of $6.8 million, or $0.11 per diluted share in the same period in 2009. Third quarter 2010 non-GAAP net income of $15.7 million, or $0.25 per diluted share, compares to second quarter 2010 non-GAAP net income of $13.1 million, or $0.21 per diluted share, and non-GAAP net income of $7.6 million, or $0.12 per diluted share in the same period in 2009.
"Micrel generated very strong financial results in the third quarter," commented Ray Zinn, President and CEO of Micrel. "At the top line, revenues of $80.6 million were at the highest quarterly level in nearly a decade and were driven by strong demand in the industrial and communications end markets. On a year-to-date basis, design wins are up more than 40% compared to last year and reflect the positive impact of our served available market expansion initiatives, including our focus on energy efficiency and green power, that the Company began implementing nearly three years ago. Operationally, I continue to be pleased with our execution. Gross margin of 57.9% increased for the sixth quarter in a row. In addition, operating margin of 27.6% has increased in each quarter during the year and is at its highest since the Company’s revenue peak in the fourth quarter of 2000 and reflects our focus on controlling costs and our ability to generate profitable growth. Third quarter earnings per diluted share of $0.24 is an all-time quarterly record for Micrel and surpasses our previous record of $0.23, which was achieved in the fourth quarter of 2000 when total revenues were 27% higher. This achievement is a testament to the Company’s commitment to enhancing shareholder value through our aggressive share re-purchase program that has helped to reduce Micrel’s diluted share count by 37% since the end of 2000."
