Micrel Earnings: Everything You Must Know Now

Micrel Inc. (NASDAQ:MCRL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Micrel Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.22% to $0.11 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Decreased 2.37% to $59.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Micrel Inc. reported adjusted EPS income of $0.11 per share. By that measure, the company beat the mean analyst estimate of $0.07. It missed the average revenue estimate of $61.2 million.

Quoting Management: Micrel’s President and CEO Ray Zinn said, “We continue to face macro-economic challenges. At the top line, we saw weakness in the computing and communications end markets. This was partially offset by growth in sales in the consumer end market, where revenues increased nicely on a sequential quarterly basis. Bookings were solid in the quarter with a book to bill ratio of 1:1 driven by strength in the industrial end market. In addition, I was pleased with our operational execution as evidenced by an improved gross margin of 52.0% for the quarter, up sequentially from 50.3%. We remain keenly focused on expense management with a nearly $1.8 million sequential quarter reduction in operating expenses that helped expand operating margins compared to the prior quarter. We also continue to maintain a strong balance sheet and ended the first quarter with cash, cash equivalents, and short term investments of $111.7 million, or $1.89 per share providing Micrel with significant financial flexibility.”

Key Stats (on next page)…

Revenue decreased 4.22% from $62.33 million in the previous quarter. EPS increased 266.67% from $0.03 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.12 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $0.45 to a profit of $0.40 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)