Exhibit 99.1
Contact: Richard Crowley
Micrel, Incorporated
2180 Fortune Drive
San Jose, CA 95131
Phone: (408) 944-0800
[Micrel Logo]
Press Release
MICREL UPDATES FOURTH QUARTER 2007 OUTLOOK
San Jose, CA, January 3, 2008 - Micrel, Incorporated (Nasdaq NM: MCRL),
an industry leader in analog, high bandwidth communications and Ethernet IC
solutions, today announced that it has revised its revenue and profit outlook
for its fourth fiscal quarter ended December 31, 2007. Micrel now projects
fourth quarter revenues will be approximately $64 million, compared with the
previous guidance issued on October 25, 2007 of $66.5 million to $67.8
million. The shortfall in revenue is primarily a result of lower than
anticipated turns-fill orders received during the last few weeks of the
fourth quarter. The turns-fill deficit was primarily from China-based
wireline communications customers and Korean wireless handset manufacturers,
as these customers moderated product deliveries to control inventory levels.
Fourth quarter business results in other regions and end markets generally
came in as expected. The book-to-bill ratio for the fourth quarter was less
than one. The Company's preliminary estimate is that first quarter 2008
revenues will be flat from fourth quarter 2007 levels.
As a result of the revised revenue projections, fourth quarter earnings
per diluted share are expected to be approximately $0.10 to $0.11, compared
with the previous guidance issued on October 25, 2007 of $0.13. These
revenue and earnings per share figures are estimates pending the final
accounting for the quarter and year ended December 31, 2007. Micrel will
provide its complete financial results, including its guidance for the first
quarter of 2008, in its regularly scheduled 2007 fourth quarter and full year
earnings release and conference call. The exact timing and details of the
earnings release and conference call will be announced in the near future.
MICREL UPDATES FOURTH QUARTER 2007 OUTLOOK
January 3, 2008
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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: our
expectations regarding future financial results, including revenues,
earnings, and customer demand. Forward-looking statements are subject to
certain risks and uncertainties that could cause 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 computer, telecommunications and industrial
markets; the impact of any previous or future acquisitions; changes in demand
for networking or high bandwidth communications products; the impact of
competitive products and pricing and alternative technological advances; the
accuracy of estimates used to prepare the Company's financial statements; 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; and Micrel's operating cash flow. For
further discussion of these risks and uncertainties, we refer you 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, 2006,
and quarterly report on Form 10-Q for the quarter ended September 30, 2007.
All forward-looking statements are made as of today, and the Company
disclaims any duty to update such statements.
About Micrel
------------
Micrel Inc., is a leading global manufacturer of IC solutions for the
worldwide analog, Ethernet and high bandwidth markets. The Company's
products include advanced mixed-signal, analog and power semiconductors; high
performance communication, clock management, Ethernet switch and physical
layer transceiver ICs. Company customers include leading manufacturers of
MICREL UPDATES FOURTH QUARTER 2007 OUTLOOK
January 3, 2008
Page 3 of 3
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 sales representatives worldwide.
For further information, contact Richard Crowley at: Micrel,
Incorporated, 2180 Fortune Drive, San Jose, California, 95131,
(408) 944-0800; or visit our website at: http://www.micrel.com.
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