Micrel Updates Fourth Quarter 2008 Outlook
Tuesday January 6, 7:00 am ET

SAN JOSE, Calif., Jan. 6 /PRNewswire-FirstCall/ -- Micrel, Incorporated (Nasdaq: MCRL - News), 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, 2008. Micrel now projects fourth quarter revenues will be down approximately 18% to 20%, compared with the previous guidance issued on October 27, 2008 of down 7% to 13%. The shortfall in revenue is primarily a result of lower than anticipated OEM turns-fill orders and distribution resales occurring in late November and December. The turns-fill deficit resulted from reduced orders from both the OEM and distribution channels. The book-to-bill ratio for the fourth quarter was below one.

As a result of the revised revenue projections, fourth quarter earnings per diluted share are expected to be approximately $0.06 to $0.08, compared with the previous guidance issued on October 27, 2008 of $0.08 to $0.11. In an effort to control expenses and protect Micrel's earnings, the company has instituted a companywide six percent reduction in workforce. These revenue and earnings per share figures are estimates pending the final accounting for the quarter and year ended December 31, 2008. Micrel will provide its complete financial results, including its guidance for the first quarter of 2009, in its regularly scheduled 2008 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.