(Source: Business Wire)
International Rectifier Corporation (NYSE:IRF) today announced financial results for the fourth quarter fiscal year 2009, ended June 28, 2009. Revenue for the fourth quarter fiscal year 2009 was $159.6 million. Excluding Intellectual Property and Transition Services segment revenue, fourth quarter fiscal year 2009 revenue from ongoing customer segments was $154.1 million, up 16.2% compared with $132.6 million in the prior quarter, and down 18.6% compared with $189.4 million reported in the fourth quarter fiscal year 2008.
International Rectifier reported fourth quarter fiscal year 2009 net income of $29.1 million, or $0.41 per share, compared with a net loss of $82.6 million or $1.15 per share in the prior quarter, and a net loss of $50.4 million or $0.69 per share in the fourth quarter fiscal year 2008.
The results for the fourth quarter fiscal year 2009 include a $96.1 million gain on the divestiture of the Power Control Systems (PCS) business, related to the settlement agreement with Vishay Intertechnology Inc., a $45 million charge related to an agreement in principle to settle the pending securities class action litigation, a $9.6 million tax benefit, a $9.5 million expense recovery from an insurance reimbursement and a $2.0 million investment impairment charge.
Gross margin, including Intellectual Property and Transition Services segments, was 20.8%. Excluding the Intellectual Property and Transition Services segments, fourth quarter fiscal year 2009 ongoing customer segments gross margin was 20.9%, down from 21.5% in the prior quarter and down from 34.9% in the fourth quarter fiscal year 2008.
Research and development expenses for the fourth quarter fiscal year 2009 were $26.2 million, up from $22.4 million in the prior quarter.
Selling, general and administrative expenses for the fourth quarter fiscal year 2009 were $83.0 million, compared with $52.7 million in the prior quarter. Selling, general and administrative expenses for the fourth quarter fiscal year 2009 included a $45 million expense related to the agreement in principle to settle the pending securities class action litigation and a $9.5 million expense recovery from an insurance reimbursement.
Cash, cash equivalents and marketable investments totaled $604.4 million at the end of the fourth quarter fiscal year 2009. This included restricted cash of $3.9 million. Net cash used in operating activities for the fourth quarter fiscal year 2009 was $9.4 million.
During the fourth quarter fiscal year 2009, the Company purchased 578,569 shares of its common stock under its existing repurchase program. The Company had 71,192,390 shares outstanding at the end of the quarter.
First Quarter Outlook
International Rectifier President and Chief Executive Officer Oleg Khaykin stated: "The strong momentum we experienced in the June quarter continues in the September quarter. We currently expect first quarter fiscal year 2010 ongoing segments total revenue, including Intellectual Property to range from $165 million to $175 million."
Change in Method of Accounting for Patent Related Costs
During the fourth quarter, the Company changed its method of accounting for legal fees related to patent applications. Previously, the Company had capitalized and amortized such fees to selling, general, and administrative expense over the life of the patent. Now, such fees will be expensed as incurred. The effect of the change was retroactively applied to prior periods. The change in selling, general and administrative expense and net income for each of the past seven quarters is attached as a table to this release.
Previous Misstatement of Cash Flow Statements
During the first three quarters of fiscal year 2009, the Company's statements of cash flows were misstated in that cash flows used in operating activities were better than previously reported, with an offsetting amount being recorded in the effect of exchange rate changes on cash and cash equivalents. The corrections to each of those two lines of the prior statements of cash flows are included as a table to this release.
Segment Table Information
The customer segment tables included with this release for the Company's fiscal quarters ended June 28, 2009 and June 29, 2008, respectively, reconcile revenue and gross margin for the Company's ongoing customer segments to the consolidated total amounts of such measures for the Company.
Annual Report on Form 10-K
The Company expects to file its 2009 annual report on Form 10-K with the Securities and Exchange Commission on Thursday, August 27, 2009. This financial report will be available for viewing and download at http://investor.irf.com.
