Click on the advert above to visit the company web site

Product category: Power Supply ICs and Controllers
News Release from: International Rectifier
Edited by the Electronicstalk Editorial Team on 08 August 2006

Computing and communications deliver for
IR

International Rectifier has reported adjusted earnings of $33.8 million (or $0.47 per share) for the June quarter on revenue of $322.7 million.

International Rectifier has reported adjusted earnings of $33.8 million (or $0.47 per share) for the June quarter on revenue of $322.7 million This compares to adjusted earnings of $28.1 million (or $0.39 per share) for the March quarter on revenue of $297.1 million

For the prior-year June quarter, adjusted earnings were $38.4 million (or $0.54 per share) on revenue of $281.8 million.

Adjusted earnings for the June 2006 quarter excluded $5.2 million of pretax severance and restructuring charges, $13.6 million of pretax gain from the sale of an equity investment, and $1.4 million of pretax expenses associated with the proposed convertible debt offering, subsequently withdrawn, and the company's repatriation of special dividends under the American Jobs Creation Act of 2004.

Adjusted earnings for the June 2006 quarter also excluded a $6.9 million tax expense from the repatriation of special dividends.

For the March 2006 quarter, adjusted earnings excluded $3.3 million in pretax severance and restructuring charges.

For the prior-year June 2005 quarter, adjusted earnings excluded $12.4 million in pretax severance and restructuring charges and $6.0 million in pretax charges from the accelerated vesting of employee stock options.

For the fiscal year just ended, adjusted net income was $117.7 million (or $1.64 per share) on revenue of $1.17 billion, compared with the prior-year adjusted net income of $167.3 million (or $2.30 per share) on revenue of $1.17 billion.

Adjusted earnings for fiscal 2006 and 2005 excluded $15.9 million and $34.0 million, respectively, in pretax severance and restructuring charges.

Also excluded are the gain and expenses, and tax impact from the special dividend repatriation in the fourth quarter in fiscal 2006, and the charge from the accelerated vesting of options in the fourth quarter of fiscal 2005, referenced above.

A $3.5 million pretax stock option expense is included in the adjusted earnings beginning fiscal 2006 due to the adoption of Statement of Accounting Standards No 123R.

On a GAAP basis, net income was $31.0 million (or $0.43 per share) for the June quarter versus $25.7 million (or $0.36 per share) in the March quarter and $24.7 million (or $0.35 per share) for the prior-year June quarter.

On a GAAP basis for fiscal 2006, IR reported net income of $107.2 million (or $1.49 per share) compared with net income of $137.5 million (or $1.91 per share) for fiscal 2005.

Stock-based compensation expense lowered both the adjusted and GAAP EPS for the June 2006 quarter by $0.01 per share.

For the June quarter, gross margin was 39.6% versus 40.0% in the March quarter.

IR reported gross margin of 43.5% in the year-ago June quarter.

Thirteen-week product backlog was $276 million at the end of the June quarter, up 12% over the prior quarter.

CEO Alex Lidow said: "Business conditions remained strong with backlog expanding to record levels, led by 27% order growth over the prior quarter".

"We were especially pleased with our largest business segment, computing and communications, which delivered 17% sequential revenue growth in the June quarter".

"This reflects the continued success we are having with ramping our fab capacity to support the largest program in the company's history for a major next-generation game station, as well as new computing programmes".

In the June quarter, IR's focus products revenue grew 8% quarter-on-quarter.

Computing and communications (C and C) revenue was up 17% over the prior quarter, led by strength in the latest generation of game stations from the top two manufacturers, as well as strength in the new generation of AMD and Intel-based servers.

Energy-savings products (ESP) revenue was down 1% from the prior quarter, primarily due to the focus that was placed on the ramp of major programmes in the C and C segment.

Aerospace and defence (A and D) revenue was up 3% over the prior quarter led by new commercial and military surveillance satellite programmes.

In the nonfocus products group, revenue increased 11% over the March quarter due to strong end market conditions.

IR generated $87 million in cash from operations in the June quarter and $160 million for fiscal 2006.

Total cash and cash investments were over $1 billion at the end of the June quarter.

For the September quarter, IR expects revenue to be up 5 to 7% over the prior quarter.

IR's backlog currently stands at more than 90% of target shipments.

With higher absorption of new fab ramp-up costs, IR expects September-quarter gross margin to be flat to up 100 basis points sequentially.

CEO Alex Lidow stated: "IR is uniquely positioned over the next 12 months with a strong lineup of leading-edge products designed in by major technology companies worldwide".

"These opportunities are translating into strong business prospects, and IR is positioned to take advantage of them with the second phase of our aggressive capacity expansion nearing completion".

"In calendar 2006, we will have added incremental production capacity of $200 to $300 million in annual revenue".

"In the new fiscal year, we look forward to significantly outperforming industry growth at higher levels of profitability for the company".

• International Rectifier: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• Electronicstalk Home Page

Search the Pro-Talk network of sites

Put your news on Electronicstalk  |   Advertise  |   Get the free Electronicstalk newsletter  |   Electronicstalk Home
About Electronicstalk  |   Copyright © 2000-2008 Pro-Talk Ltd, UK