Exhibit 99.1

NEWS RELEASE

For More Information Contact:

Greg Miller, Chief Financial Officer

(408) 934-3144

gregm@calmicro.com

California Micro Devices Presents December Quarter Results

MILPITAS, Calif. — Jan. 20, 2005 — California Micro Devices (Nasdaq: CAMD) today presented financial results for its third fiscal quarter of 2005, which ended December 31, 2004. Revenue was $17.8 million compared to $17.1 million in the prior quarter and $17.0 million in the same quarter a year ago. Diluted earnings per share were $0.04 compared to $0.10 in the prior quarter and $0.12 a year ago. The diluted earnings per share include restructuring charges of approximately $1.1 million related to the previously announced closure of the company’s manufacturing facility in Tempe, Arizona.

The company also announced it had recently identified certain costs from vendors that had been recognized in the incorrect quarter. Accordingly, the company is adjusting its financial results for the six most recent quarters to correct these timing inaccuracies. The largest change to its reported net income in any one quarter was $63,000. The changes in the company’s reported diluted earnings per share are a one cent reduction for the second quarter of fiscal 2004, the first quarter of fiscal 2005, the interim periods in fiscal 2004 and fiscal 2004. The company is completing the implementation of Oracle ERP software which will assist in the appropriate recording of future vendor expenses.

“Thanks to the strong demand for our products, we saw an 18 percent sequential increase in our core business revenue to a record $15.4 million,” said Robert V. Dickinson, president and CEO. “Revenue from our Mobile products grew by 22 percent, while revenue from our Computing and Digital Consumer products rose by 8 percent. We also set new records for core business bookings at $15.6 million and for design wins at 197.” Dickinson noted that total core business revenue increased by 42 percent compared to the same quarter a year ago.

Conference Call Today

California Micro Devices will hold a conference call today at 2:00 p.m. Pacific Time to discuss its December quarter results. Within the USA, interested parties can access the conference call by dialing (800) 240-2134. International parties may gain access by dialing (303) 262-2140. No password is necessary.

Telephone replay of the conference call will be available from approximately 4:00 p.m. Pacific Time today and continuing for one year. To access this recording from within the USA, please dial (800) 405-2236 and enter the conference pass code 11020238. International callers may gain access by dialing (303) 590-3000 and entering the same pass code.

About California Micro Devices Corporation

California Micro Devices Corporation is a leading supplier of application specific analog semiconductor products for the mobile, computing and digital consumer markets. Key products include Application Specific Integrated Passive™ (ASIP™) devices plus power management and interface ICs. Detailed corporate and product information may be accessed at www.calmicro.com.

All statements contained in this press release that are not historical facts are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as will, intends, expects, plans, believes, anticipates, and estimates. Forward-looking statements made in this release include that we are completing the implementation of Oracle ERP software, which will assist in the appropriate recording of future vendor expenses. These forward-looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to, whether we encounter technical or personnel issues in our implementation efforts and whether the software performs as designed due to operator error or design flaws, as well as other risk factors detailed in the company’s Form 8K, 10K, and 10Q filings with the Securities and Exchange Commission. Due to these and other risks, the company’s future actual results could differ materially from those discussed above. These forward-looking statements speak only as to the date of this release, and, except as required by law, we undertake no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise.

# # #

ASIP™ and Application Specific Integrated Passive™ are trademarks of California Micro Devices.

California Micro Devices Corporation · 430 N. McCarthy Blvd. #100, Milpitas, CA 95035-5112

www.calmicro.com · Tel: 408.263-3214 · Fax: 408.263-7846

All other trademarks are property of their respective owners

California Micro Devices Corporation

CONDENSED BALANCE SHEETS

(amounts in thousands, except share quantities)

(Unaudited)

	December 31, 2004			March 31, 2004*
ASSETS
Current assets:
Cash and cash equivalents	$	4,160		$	20,325
Short-term investments		28,877			—
Accounts receivable, less allowance for doubtful accounts of $80 and $76, respectively		9,890			6,134
Inventories		8,355			6,543
Prepaid expenses and other current assets		705			911
Total current assets		51,987			33,913
Property, plant and equipment, net		6,430			6,985
Other long-term assets		173			229
TOTAL ASSETS	$	58,590		$	41,127
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,877		$	4,705
Accrued liabilities		3,046			4,560
Deferred margin on shipments to distributors		2,088			2,459
Current maturities of long-term debt and capital lease obligations		92			2,568
Total current liabilities		11,103			14,292
Long-term debt and capital leases, less current maturities		176			4,684
Other long-term liabilities		24			33
Total liabilities		11,303			19,009
Commitments and contingencies
Shareholders’ equity:
Common stock - no par value; 50,000,000 and 25,000,000 shares authorized as of September 30, 2004 and March 31, 2004, respectively; shares issued and outstanding: 21,523,558 as of December 31, 2004 and 19,788,088 as of March 31, 2004		105,127			84,991
Accumulated other comprehensive loss		—			—
Accumulated deficit		(57,840	)		(62,873	)
Total shareholders’ equity		47,287			22,118
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	58,590		$	41,127

* Restated. See schedule of restatement adjustments.

California Micro Devices Corporation

CONDENSED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

	Three Months Ended December 31,					Nine Months Ended December 31,
	2004			2003*		2004		2003*
Net sales	$	17,840		$	16,957	$	51,372	$	43,723
Cost and expenses:
Cost of sales		11,342			9,789		31,455		29,072
Research and development		1,192			1,219		3,648		3,258
Selling, general and administrative		3,484			3,190		9,965		8,846
Restructuring		1,055			—		1,055		—
Total costs and expenses		17,073			14,198		46,123		41,176
Operating income		767			2,759		5,249		2,547
Other (income) expense, net		(130	)		210		61		661
Income before income taxes		897			2,549		5,188		1,886
Income taxes		27			41		155		41
Net income	$	870		$	2,508	$	5,033	$	1,845
Net income per share–basic	$	0.04		$	0.13	$	0.24	$	0.11
Weighted average common shares outstanding–basic		21,492			19,107		21,241		17,545
Net income per share–diluted	$	0.04		$	0.12	$	0.22	$	0.10
Weighted average common shares and share equivalents outstanding–diluted		22,804			20,731		22,780		18,203

* Restated. See schedule of restatement adjustments.

California Micro Devices Corporation

RESTATEMENT ADJUSTMENTS TO BALANCE SHEET

(amounts in thousands)

(Unaudited)

	June 30, 2003			September 30, 2003			December 31, 2003			March 31, 2004			June 30, 2004			September 30, 2004
Inventories
As originally reported	$	3,434		$	4,361		$	5,407		$	6,521		$	6,883		$	7,570
Restated		3,504			4,371			5,420			6,543			6,903			7,686
Increase (decrease)		70			10			13			22			20			116
Accounts payable
As originally reported		3,801			4,026			5,249			4,498			6,600			4,727
Restated		3,933			4,181			5,465			4,705			6,833			5,003
Increase (decrease)		132			155			216			207			233			276
Accrued liabilities
As originally reported		2,771			3,554			3,770			4,560			2,451			2,495
Restated		2,771			3,534			3,709			4,560			2,449			2,498
Increase (decrease)		—			(20	)		(61	)		—			(2	)		3
Accumulated deficit
As originally reported		(67,665	)		(66,983	)		(64,458	)		(62,688	)		(60,730	)		(58,547	)
Restated		(67,727	)		(67,108	)		(64,600	)		(62,873	)		(60,941	)		(58,710	)
Increase (decrease)		(62	)		(125	)		(142	)		(185	)		(211	)		(163	)

California Micro Devices Corporation

RESTATEMENT ADJUSTMENTS TO CONDENSED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

	THREE MONTHS ENDED																		FISCAL 2004									FISCAL 2005
	June 30, 2003			September 30, 2003			December 31, 2003			March 31, 2004			June 30, 2004			September 30, 2004			Six Months Ended September 30, 2003			Nine Months Ended December 31, 2003			Year Ended March 31, 2004			Six Months Ended September 30, 2004
Cost of sales
As originally reported	$	9,156		$	9,986		$	9,766		$	9,280		$	9,906		$	10,273		$	19,142		$	28,908		$	38,188		$	20,179
Restated		9,218			10,065			9,789			9,301			9,934			10,179			19,283			29,072			38,373			20,113
Increase (decrease)		62			79			23			21			28			(94	)		141			164			185			(66	)
Research and development
As originally reported		1,052			991			1,220			1,291			1,206			1,207			2,043			3,263			4,554			2,413
Restated		1,052			987			1,219			1,296			1,206			1,250			2,039			3,258			4,554			2,456
Increase (decrease)		—			(4	)		(1	)		5			—			43			(4	)		(5	)		—			43
Selling, general and administrative
As originally reported		2,678			2,990			3,195			3,121			3,226			3,254			5,668			8,863			11,984			6,480
Restated		2,678			2,978			3,190			3,138			3,225			3,256			5,656			8,846			11,984			6,481
Increase (decrease)		—			(12	)		(5	)		17			(1	)		2			(12	)		(17	)		—			1
Income taxes
As originally reported		—			—			41			(41	)		61			67			—			41			—			128
Restated		—			—			41			(41	)		60			68			—			41			—			128
Increase (decrease)		—			—			—			—			(1	)		1			—			—			—			—
Net income
As originally reported		(1,220	)		682			2,525			1,770			1,958			2,183			(538	)		1,987			3,757			4,141
Restated		(1,282	)		619			2,508			1,727			1,932			2,231			(663	)		1,845			3,572			4,163
Increase (decrease)		(62	)		(63	)		(17	)		(43	)		(26	)		48			(125	)		(142	)		(185	)		22
Net income per share–basic
As originally reported		(0.08	)		0.04			0.13			0.09			0.09			0.10			(0.03	)		0.11			0.21			0.20
Restated		(0.08	)		0.04			0.13			0.09			0.09			0.10			(0.04	)		0.11			0.20			0.20
Increase (decrease)		—			—			—			—			—			—			(0.01	)		—			(0.01	)		—
Net income per share–diluted
As originally reported		(0.08	)		0.04			0.12			0.08			0.09			0.10			(0.03	)		0.11			0.20			0.18
Restated		(0.08	)		0.03			0.12			0.08			0.08			0.10			(0.04	)		0.10			0.19			0.18
Increase (decrease)		—			(0.01	)		—			—			(0.01	)		—			(0.01	)		(0.01	)		(0.01	)		—