Product category:
Communications ICs (Wired)
News Release from: Intersil
Edited by the Electronicstalk Editorial
Team on 01 May 2003
Intersil pleased with overall
performance
Intersil Corp has reported financial results for the first quarter ended 4th April 2003.
Intersil Corp has reported financial results for the first quarter ended 4th April 2003 On a generally accepted accounting principles (GAAP) basis, net revenue was $164.4 million, an increase of 23% from the first quarter of 2002
This article was originally published on Electronicstalk on 8 Jan 2001 at 8.00am (UK)
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GAAP net income for the first quarter of 2003 was $13.7 million or $0.10 per diluted share.
This compares to net income of $13.8 million or $0.13 per diluted share for the same period a year ago.
Intersil believes that adjusted revenue and earnings information is a more accurate representation of its quarterly operating performance and has therefore chosen to provide this information to investors for a more consistent basis of comparison.
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Intersil also uses this adjusted information internally to evaluate and manage the company's operations.
Revenue from ongoing operations, including Elantec for all periods and excluding automotive, was $162.2 million, an increase of 10% over the prior year and a decrease of 1% from the fourth quarter of 2002.
Excluding amortisation of intangibles and other one-time items, adjusted net income for the first quarter was $18.3 million or $0.13 per diluted share of common stock.
This compares with adjusted net income of $17.8 million or $0.13 per diluted share for the first quarter of 2002.
"Our power management and Elantec product groups both achieved impressive sequential growth in the first quarter, and were pleased with Intersil's total performance during what is historically a seasonally weak quarter for the industry", said Rich Beyer, Intersil's President and CEO.
"Our wireless networking product group and total analogue business each grew on an annual basis.
Our orders position improved substantially with strong sequential orders growth in each of our product groups".
"Intersil improved gross margins 30 basis points to 53.0% this quarter and our analogue gross margins reached an all-time high", added Beyer.
The company generated more than $34 million in cash flow from operations and exited the quarter with a very strong cash and liquid investments position of over $633 million.
Revenue for Intersil's power management products reached a record $54.3 million during the first quarter, an increase of 3% from the prior quarter and 26% from the first quarter of 2002.
Intersil's continued expansion from desktop power management into notebook, portable and peripheral applications helped the company grow its revenue during a historically soft seasonal quarter.
Intersil's Endura power management products for notebooks, graphics cards and DDR memory all experienced significant growth during the first quarter.
Intersil received more orders for notebook products in the first quarter than it had for all of 2002.
Strong design win momentum for Intersil's graphics card and DDR memory solutions helped the company's market share to grow to more than 50% of next-generation products.
This should help drive continued revenue growth for Intersil's power management product group during all of 2003 and beyond.
Elantec product sales also increased during the quarter, growing 6% sequentially and 7% over the first quarter of the prior year to $27.2 million.
Revenue growth for the Elantec product group was driven by demand for its laser diode drivers (LDD) for new DVD recorders, as Intersil continues to benefit from increasing PC attach rates for DVD recordable drives.
The company also experienced increasing demand for its DSL products and announced during the quarter that it has now shipped more than 30 million DSL ports since introducing the world's first DSL line driver in 1995.
Intersil's standard analogue revenue decreased 1% both sequentially and from the same quarter of 2002 to $29.8 million.
Based on recent improvement in customer ordering patterns, there now appears to be some strengthening in the standard analogue demand environment.
As a result, Intersil expects a return to sequential revenue growth in standard analogue in the second quarter.
Intersil continues to add to its standard analogue portfolio with high-precision, low power, space-saving products such as analogue switches for voice over broadband and RS232/485 interface.
The company's focus on portable markets within standard analogue has helped establish Intersil as the number one supplier of analogue multiplexers and number three supplier of analogue switches.
As expected, the company reported automotive product sales of $2.2 million during the first quarter as Intersil completed its exit of the automotive business in order to focus on higher growth and more profitable markets.
Intersil's wireless networking sales decreased 9% from the previous quarter but grew 4% year over year to $51.0 million.
The sequential decline was primarily due to seasonal softness within the WLAN market as well as ASP declines in 11Mbit/s 802.11b.
As expected, the market began to shift to higher-datarate 54Mbit/s products during the quarter.
Lead customers including D-Link, Netgear, SMC, Corega and USI have already begun ramping new products based on Intersil's higher-datarate Prism WLAN solutions, and approximately 20% of the first quarter wireless networking revenue came from these new products.
Intersil also began shipping its new dual band 802.11a, b and g WLAN solution, Prism Duette, during the first quarter.
Continued strong orders demand for these new solutions should result in a resumption of wireless networking growth in the second quarter.
Looking ahead to the second quarter, Beyer said, "Given the increasing strength in orders in Q1 and our new product launches, we expect to resume sequential revenue growth in the second quarter.
We expect revenue to grow 5 to 7% in the second quarter to between $172 and $176 million, with all of our product groups contributing to our growth.
We expect earnings to grow faster than revenues, due to continued improvement in gross margins and continued leveraging of our operating expenses.
We anticipate adjusted earnings per share to increase to $0.15-$0.16 in the second quarter".
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