Product category:
Power Supply ICs and Controllers
News Release from: International Rectifier
Edited by the Electronicstalk Editorial
Team on 06 November 2006
Focus products lead IR growth
International Rectifier Corp has reported adjusted earnings of $37.8 million (or $0.52 per share) for the September quarter on revenue of $344.2 million.
International Rectifier Corp has reported adjusted earnings of $37.8 million (or $0.52 per share) for the September quarter on revenue of $344.2 million This compares to adjusted earnings of $33.8 million (or $0.47 per share) for the June quarter on revenue of $322.7 million
This article was originally published on Electronicstalk on 15 Feb 2001 at 8.00am (UK)
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For the prior-year September quarter, adjusted earnings were $29.4 million (or $0.41 per share) on revenue of $272.6 million.
IR has also announced an agreement for the sale of its Power Control Systems (PCS) business to Vishay Intertechnology.
The PCS business includes the company's nonfocus products business and certain product revenue previously accounted for in the company's focus products business.
Further reading
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New from International Rectifier are two TO-220-packaged HEXFET power MOSFETs that maximise power density and performance in primary- and secondary-side DC/DC convertor circuits.
Rad-hard MOSFETs protect and survive
With high radiation hardness and unparalleled single event effect (SEE) immunity, International Rectifier's new R5 MOSFETs are well suited for systems that must survive penetrating gamma rays.
Reference design simplifies high-efficiency PSUs
International Rectifier has released a reference design for its recently introduced IR1176 application-specific synchronous rectification IC (SRIC).
The PCS business accounted for approximately $300 million, or about 26% of revenue, in IR's June-ending fiscal year 2006.
In the September quarter, revenue from the PCS business was $86 million, which includes $6 million in product revenue previously accounted for in the focus products group.
The PCS business is expected to be sold for approximately $290 million in cash.
The agreement is subject to customary closing conditions, including obtaining all necessary governmental approvals and clearances, and finalisation of schedules and other related documentation.
Signing of definitive agreements is expected to take place by Friday 10th November 2006, and the transaction is expected to close in February 2007.
On a GAAP basis, net income was $34.1 million (or $0.47 per share) for the September quarter versus $31.0 million (or $0.43 per share) in the June quarter and $26.2 million (or $0.36 per share) for the prior-year September quarter.
IR's adjusted earnings for the September 2006 quarter excluded $5.2 million of pretax severance and restructuring charges.
Adjusted earnings for the June 2006 quarter excluded $5.2 million of pretax severance and restructuring charges and other special charges associated with the dividend repatriation under the American Jobs Creation Act of 2004 and the company's proposed convertible debt offering which was subsequently withdrawn, offset by gains from the sale of an equity investment, net of applicable taxes.
For the prior-year September 2005 quarter, adjusted earnings excluded $4.3 million in pretax severance and restructuring charges.
Stock-based compensation expense lowered both the adjusted and GAAP earnings per share for the September 2006 quarter by $0.02 per share compared with $0.01 per share in the June quarter.
For the September quarter, gross margin was 40.2% versus 39.6% in the June quarter.
IR reported gross margin of 40.7% in the year-ago September quarter.
CEO Alex Lidow said: "We saw strong growth in our focus products business, up 8% over the prior quarter, led by a 17% sequential increase in our largest business segment, computing and communications".
"This reflects the continued success in ramping our fab capacity to support a number of major programmes for game stations, servers, and dual-core notebooks and desktops".
"Yesterday, we announced an agreement to sell our PCS business which will enable the company to concentrate its resources and assets on the focus products business".
"We expect substantial benefits over the next year, including a streamlined organisation focused on capitalising on some of the largest and fastest growing markets for power management while positioning the company to more readily achieve its long-term profit margin goals".
In the September quarter, IR's focus products revenue was 75% of total revenue and grew 8% over the prior quarter and 32% over the prior-year 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 Intel and AMD-based servers.
Energy-savings products (ESP) revenue was down 2% from the prior quarter, primarily due to seasonality in the automotive and industrial sectors.
Aerospace and defence (A and D) revenue was up 3% over the prior quarter led by new commercial aircraft programs.
In the nonfocus products group, revenue increased 3% over the June quarter and 12% over the prior-year quarter.
For the December quarter, IR expects overall company revenue to be flat to up 3% with focus products revenue up 2 to 4% over the prior quarter.
Backlog currently stands at more than 85% of target shipments.
IR expects December-quarter gross margin to be flat to up 50 basis points sequentially.
CEO Alex Lidow stated: "The company expects to continue to capitalise on the roll-out of major Focus Product programs".
"IR is still in the early stage of leveraging business from our large game station program and other sizable new programmes heading into calendar 2007".
"We have added capacity this year to support this business and are planning to add an additional $100 million to $150 million in revenue potential by July 2007".
"As a part of our expansion plans, we announced a foundry agreement with Tower Semiconductor for capacity capable of addressing the complete range of our focus products".
"This fiscal year, we are on track to outperform the industry in revenue growth, and at higher levels of profitability".
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