The Company presents non-GAAP financial measures only because investors and financial analysts use non-GAAP results in their analysis of historical results and projections of the Company's future operating results. In order to facilitate the computation of non-GAAP results for the financial analyst community and investors, the Company makes reference to non-GAAP net income and earnings per share. These non-GAAP results exclude the impact of share-based compensation, restructuring charges and amortization of acquisition-related intangible assets with related income tax effects and R&D tax credit. Micrel references those results to allow a better comparison of results in the current period to those in prior periods and to provide insight to the Company's on-going operating performance after exclusion of these items. The Company has reconciled such non-GAAP results to the most directly comparable GAAP financial measures in the financial tables at the end of this press release.
Reference to these non-GAAP results should be considered in addition to results that are prepared under current accounting standards, but should not be considered a substitute for results that are presented in accordance with GAAP. It should also be noted that Micrel's non-GAAP information may be different from the non-GAAP information provided by other companies.
About Micrel
Micrel, Inc. is a leading global manufacturer of IC solutions for the worldwide high-performance linear and power, LAN and timing and communications markets. The Company's products include advanced mixed-signal, analog and power semiconductors; high performance communication, clock management, MEMs-based clock oscillators and crystal-less clock generators, Ethernet switch and physical layer transceiver ICs. Company customers include leading manufacturers of enterprise, consumer, industrial, mobile, telecommunications, automotive, and computer products. Corporation headquarters and state-of-the-art wafer fabrication facilities are located in San Jose, CA, with regional sales and support offices and advanced technology design centers situated throughout the Americas, Europe and Asia. In addition, the Company maintains an extensive network of distributors and reps worldwide. Web: www.micrel.com.
-Financial Tables to Follow-
MICREL, INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share amounts)
(Unaudited)
Three Months Ended
-----------------------------------
March 31, December 31, March 31,
2014 2013 2013
--------- ------------ ----------
Net revenue $ 59,857 $ 60,007 $ 59,733
Cost of revenue * 28,638 29,594 28,653
--------- ------------ ----------
Gross profit 31,219 30,413 31,080
Gross profit % 52.2% 50.7% 52.0%
Operating expenses:
Research and development * 15,481 14,526 13,771
Selling, general and administrative * 12,436 11,325 11,861
Restructuring charges - 1,376 -
--------- ------------ ----------
Total operating expenses 27,917 27,227 25,632
Income from operations 3,302 3,186 5,448
Interest and other income (expense):
Interest income 103 109 126
Other expense (72) (34) (91)
--------- ------------ ----------
Interest and other income
(expense), net 31 75 35
Income before provision for income
taxes 3,333 3,261 5,483
Provision for (benefit from) income
taxes 1,044 (103) 238
--------- ------------ ----------
Net income $ 2,289 $ 3,364 $ 5,245
========= ============ ==========
Net income per share:
Basic $ 0.04 $ 0.06 $ 0.09
========= ============ ==========
Diluted $ 0.04 $ 0.06 $ 0.09
========= ============ ==========
Shares used in computing per share
amounts:
Basic 56,388 56,908 58,270
========= ============ ==========
Diluted 57,208 57,546 59,030
========= ============ ==========
* Share-based compensation expense
included in:
Cost of revenue $ 234 $ 276 $ 244
Research and development 690 867 652
Selling, general and administrative 798 878 723
--------- ------------ ----------
$ 1,722 $ 2,021 $ 1,619
========= ============ ==========
MICREL, INCORPORATED
SUPPLEMENTAL RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS
(In thousands, except share amounts)
(Unaudited)
Three Months Ended
------------------------------------
March 31, December 31, March 31,
2014 2013 2013
---------- ------------ ----------
GAAP net income $ 2,289 $ 3,364 $ 5,245
Adjustments:
Share-based compensation included
in:
Cost of revenues 234 276 244
Research and development 690 867 652
Selling, general and
administrative 798 878 723
Restructuring charges - 1,376 -
Amortization of acquisition-
related intangible assets 426 330 275
Tax effect of adjustments (708) (1,229) (644)
R&D tax credit - (1,062) -
---------- ------------ ----------
Total adjustments to GAAP net income 1,440 1,436 1,250
---------- ------------ ----------
Non-GAAP net income* $ 3,729 $ 4,800 $ 6,495
========== ============ ==========
Shares used in computing non-GAAP net
income per share:
Basic 56,388 56,908 58,270
========== ============ ==========
Diluted 57,208 57,546 59,030
========== ============ ==========
GAAP net income per share - basic $ 0.04 $ 0.06 $ 0.09
Total adjustments to GAAP net income 0.03 0.02 0.02
---------- ------------ ----------
Non-GAAP net income per share - basic $ 0.07 $ 0.08 $ 0.11
========== ============ ==========
GAAP net income per share - diluted $ 0.04 $ 0.06 $ 0.09
Total adjustments to GAAP net income 0.03 0.02 0.02
---------- ------------ ----------
Non-GAAP net income per share -
diluted $ 0.07 $ 0.08 $ 0.11
========== ============ ==========
* Non-GAAP results were reached by excluding share-based compensation
expense, restructuring charges, amortization of acquisition-related
intangible assets with related income tax effects and R&D tax credit. Non-
GAAP results were presented to supplement our GAAP consolidated financial
statements to allow a better comparison of results in the current period
to those in prior periods and to provide meaningful insight to the
Company's on-going operating performance after exclusion of these items.
MICREL, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
March 31, December 31,
2014 2013
------------- -------------
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and short-term
investments $ 90,243 $ 88,593
Restricted cash 1,116 1,116
Accounts receivable, net 35,934 29,437
Inventories 41,989 43,201
Prepaid taxes 878 4,513
Prepaid expenses and other 2,324 2,698
Deferred income taxes 22,321 21,662
------------- -------------
Total current assets 194,805 191,220
LONG-TERM INVESTMENTS 4,325 4,195
PROPERTY, PLANT AND EQUIPMENT, NET 55,966 57,779
LONG-TERM PREPAID TAXES 1,725 -
DEFERRED INCOME TAXES 1,975 1,581
GOODWILL 8,655 8,554
INTANGIBLE ASSETS, NET 10,910 11,749
OTHER ASSETS 1,583 1,046
------------- -------------
TOTAL $ 279,944 $ 276,124
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 14,427 $ 13,502
Deferred income on shipments to distributors 28,989 27,026
Other current liabilities 13,343 12,874
------------- -------------
Total current liabilities 56,759 53,402
LONG-TERM INCOME TAXES PAYABLE 3,692 3,575
LONG-TERM DEFERRED INCOME TAXES 1,220 973
OTHER LONG-TERM LIABILITIES 201 201
SHAREHOLDERS' EQUITY
TOTAL SHAREHOLDERS' EQUITY 218,072 217,973
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 279,944 $ 276,124
============= =============
