Product category:
Power Supply ICs and Controllers
News Release from: Intersil
Edited by the Electronicstalk Editorial
Team on 30 July 2003
Intersil beats financial targets with
11% growth
Intersil Corp has reported financial results for the second quarter ended 4th July 2003.
Intersil Corp has reported financial results for the second quarter ended 4th July 2003 On a generally accepted accounting principles (GAAP) basis, net revenue was $125.5 million, an increase of 9% from the first quarter of 2003
This article was originally published on Electronicstalk on 8 Jan 2001 at 8.00am (UK)
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This excludes revenue from the company's discontinued Wireless Networking Product Group.
GAAP net income from continuing operations was $17.5 million or $0.12 per diluted share.
Intersil provided second quarter guidance on 23rd April 2003 including its Wireless Networking Product Group.
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To be consistent with this guidance, Intersil is reporting adjusted revenue for the second quarter including the Wireless Networking Product Group.
On this basis, adjusted revenue was $182.1 million, representing an increase of 11% from the previous quarter and a 4% increase from the same quarter a year ago.
Excluding amortisation of intangibles and a gain and a loss on equity investments, adjusted net income for the second quarter was $22.1 million or $0.16 per diluted share of common stock.
This compares with adjusted net income of $18.3 million or $0.13 per diluted share for the first quarter of 2003.
"We are very pleased with our sequential revenue growth of 11% in the current environment.
All of our product groups grew during the second quarter - the result of our strong product portfolio and leading market positions", said Rich Beyer, Intersil's President and CEO.
"Our Power Management Product Group again reached a record revenue level this quarter.
We feel that our new products and design win successes across all product groups will support continued sequential growth for the remainder of the year".
"Intersil's gross margins decreased slightly to 51.4% during the second quarter, due primarily to increasing price pressure within wireless networking and our higher mix of desktop power management revenue in the quarter.
Our Elantec Product Group reached a record gross margin level during this period and we continue to believe that we're well positioned for future margin expansion as a pure high performance analogue company", added Beyer.
"The company generated approximately $14 million in cash flow from operations and exited the quarter with a very strong cash and liquid investments position of over $630 million".
Revenue for Intersil's Power Management products reached a record $63.6 million during the second quarter, an increase of 17% from the previous quarter and 45% from the second quarter of 2002.
Intersil achieved sales growth in all market segments of power management during the quarter.
Intersil achieved double-digit sequential sales growth in desktop power management during a quarter in which the desktop motherboard market declined more than 10%.
Intersil also continues to experience strong demand for its notebook and peripheral power solutions for DDR memory and graphics cards.
To help keep pace with customer demand for its high-running Endura power ICs, Intersil announced during the quarter that it has added duplicate foundry capacity with AMI Semiconductor.
Elantec product sales increased 11% sequentially and 2% over the second quarter of 2002 to $30.1 million.
Revenue growth for the Elantec Product Group was driven by customer demand for laser diode drivers for DVD recordables, which doubled in revenue over the previous quarter, and LCD video products.
As the world's leading supplier of laser diode drivers, Intersil continues to benefit from the growing attach rates of DVD recordable drives in PCs and the integration of DVD recording technology in a variety of new applications.
During the quarter, Intersil introduced its first products in a new family of high performance operational amplifiers that it will expand throughout 2003.
These new general purpose op amps serve a broad range of markets and lay a foundation for future growth of the Elantec Product Group.
Intersil's Standard Analogue revenue increased 1% sequentially and decreased 10% from the same quarter of 2002 to $30.2 million.
Intersil added several products to its Standard Analogue portfolio during the quarter including new high performance, low voltage analogue switches that feature best-in-class ON-resistance.
The company is also winning new designs and ramping up production on its new Linearlink family of RS485/RS422 data transceivers that combine superior performance with longer reach and higher data integrity.
Intersil's Wireless Networking sales increased 14% from the previous quarter and decreased 2% from the second quarter of 2002 to $58.2 million.
Intersil continued to experience strong demand for its 54Mbit/s Prism GT chip set throughout the quarter, tripling its 802.11g shipments from the first quarter to the second quarter of 2003.
The company also announced that it has begun sampling its new Prism WorldRadio, enabling WLAN users to establish a wireless network connection throughout the world with any standards-compliant wireless 802.11 infrastructure they encounter, including existing and proposed 802.11 standards.
On 15th July Intersil announced that it had entered into a definitive agreement to sell its Wireless Networking Product Group to GlobespanVirata, for approximately $365 million in cash and stock.
Following regulatory approval, Intersil expects to finalise the sale prior to the end of the third quarter of 2003 and expects to report a gain on the transaction.
Under terms of the agreement, Intersil will receive $250 million in cash and approximately $115 million in GlobespanVirata stock.
Intersil will also retain certain working capital, resulting in approximately $20 million of additional cash to be collected by the company after the transaction is completed.
Excluding the Wireless Networking Product Group in the second quarter, Intersil achieved sales of $125.5 million.
Adjusted earnings per share, excluding the Wireless Networking Product Group, amortisation of intangibles and a gain and a loss on equity investments, was $0.14.
The restated historical income statement, excluding results of the Wireless Networking Product Group, is provided with the attached financial schedules.
As announced on 15th July Intersil will now report its adjusted results on this continuing product group basis.
Looking ahead to the third quarter of 2003, Beyer said, "Based on the continued strength of our Power Management and Elantec Product Groups, we expect revenue from continuing operations to grow 3 to 5% from the second quarter to approximately $128 million to $132 million.
We anticipate achieving gross margins of 56 to 57% and adjusted earnings per share of approximately $0.15".
"The recent expansion in all of our product areas is encouraging and we expect continued growth in the second half of the year.
We believe this illustrates the breadth of our product portfolio across a wide variety of applications.
In 2003, Intersil will introduce over 250 new analogue products, expanding our broad-based portfolio faster than ever before", concluded Beyer.
"We're confident that our growth strategy, combined with our attractive and improving analogue gross and operating margins, will result in a powerful, long term business model that will continue to increase our profitability and enhance shareholder value".
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