(Source: MARKETWIRE)
Intersil Corporation (NASDAQ: ISIL), a world leader in the design
and manufacture of high performance analog and mixed signal
semiconductors, today reported financial results for its third
quarter ended October 2, 2009.
Results of Operations
Net revenues for the third quarter were $168.3 million, a 23%
decrease from $218.7 million in the third quarter of 2008 and a 14%
increase from $147.3 million in the second quarter of 2009.
Intersil's third quarter revenues by end market were as follows:
high-end consumer, 28% of revenues; computing, 34% of revenues;
industrial, 19% of revenues; and communications, 19% of revenues.
Gross margin was 54.5%, compared with gross margin of 56.3% in the
same quarter last year, and 54.2% in the second quarter of 2009.
Operating margin from continuing operations was 10.4%, compared with
22.9% in the same quarter last year, and 6.2% in the second quarter of
2009. Income from continuing operations was $12.3 million or $0.10 per
diluted share, compared with $47.3 million, or $0.38 per diluted share
in the same quarter last year, and $6.2 million, or $0.05 per diluted
share, in the second quarter of 2009.
Net income was $12.3 million, or $0.10 per diluted share, compared
with $47.3 million, or $0.38 per diluted share in the same quarter
last year, and $6.2 million, or $0.05 per diluted share, in the
second quarter of 2009. Third quarter net income includes a $14.3
million unrealized loss on Intersil's long term auction rate
securities and approximately $9.7 million in related tax benefits.
"The third quarter demonstrated the ongoing broad-based recovery
within our computing, consumer and now industrial end markets," said
Dave Bell, Intersil's President and Chief Executive Officer. "The
third quarter exhibited normal seasonality, and we believe that the
communications end market is now poised for recovery as well."
"During the quarter, we completed the acquisition of Quellan, which
exemplifies our strategy to expand our presence in high-margin
communications infrastructure markets," continued Bell. "Quellan's
signal integrity products improve the reach and power efficiency of
high-speed interconnections within data centers."
At the end of the third quarter, Intersil's cash and short-term
investments totaled over $329 million with no debt. Free cash flow
was $32.6 million during the third quarter.
Intersil's Board of Directors has authorized the payment of a
quarterly dividend of $0.12 per share of common stock. The payment of
this dividend will be made on November 20, 2009 to shareholders of
record as of the close of business on November 10, 2009.
Fourth Quarter 2009 Outlook
-- Revenues are expected to be in the range of $170 million to $177 million
-- Research and development expenses are expected to decrease slightly to
approximately $38 million
-- Selling, general and administrative expenses are expected to be roughly
flat at approximately $33 million
-- Stock-based compensation expense is expected to be approximately $7.8
million
-- GAAP earnings per diluted share are expected to be in the range of $0.14
to $0.17
"The steady improvement of business conditions in the third quarter
gives us confidence in the sustainability of this recovery. Our
book-to-bill was above one, and we saw increasing backlog exiting the
quarter," said Mr. Bell. "We believe our gross margin will again
increase moderately as sales into the industrial and communications
end markets grow in the fourth quarter."
Intersil will discuss its third quarter financial results during its
scheduled conference call following the market close on October 21st.
Those wishing to participate in the conference call please dial (800)
299-0433, and international participants please dial +1 (617)
801-9712, using the password 68224032 at approximately 1:40 p.m.
Pacific Time. Those wishing to listen to the call may also do so via
webcast on Intersil's Web site: http://www.intersil.com/investor.
A replay of the call will be available for two weeks following the
conference call on Intersil's Web site, or may be accessed by dialing
(888) 286-8010, international dial +1 (617) 801-6888, using the
password 74602051.
About Intersil
Intersil Corporation is a leader in the design and manufacture of
high-performance analog and mixed signal semiconductors. Intersil's
products address some of the industry's fastest growing markets, such
as flat panel displays, cell phones, other handheld systems, and
notebooks. Intersil's product families address power management
functions and analog signal processing functions. Intersil products
include ICs for battery management, hot-plug controllers, linear
regulators, power sequencers, supervisory ICs, bridge drivers, PWM
controllers, switching DC/DC regulators, Zilker Labs Digital Power
ICs and power MOSFET drivers; optical storage laser diode drivers; DSL
line drivers; D2Audio products; video and high-performance operational
amplifiers; high-speed data converters; interface ICs; analog
switches and multiplexers; crosspoint switches; voice-over-IP
devices; and ICs for military, space and radiation-hardened
applications. For more information about Intersil or to find out how
to become a member of our winning team, visit Intersil's Web site and
career page at www.intersil.com.
FORWARD-LOOKING STATEMENTS
Intersil Corporation press releases and other related comments may
contain forward-looking statements as defined in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934, in connection with the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements are based upon
Intersil's management's current expectations, estimates, beliefs,
assumptions and projections about Intersil's business and industry.
Words such as "anticipates," "expects," "intends," "plans,"
"predicts," "believes," "seeks," "estimates," "may," "will,"
"should," "would," "potential," "continue," "goals," "targets" and
variations of these words (or negatives of these words) or similar
expressions, are intended to identify forward-looking statements. In
addition, any statements that refer to projections or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to certain risks, uncertainties and assumptions that
are difficult to predict. Therefore, our actual results could differ
materially and adversely from those expressed in any forward-looking
statements as a result of various risk factors. Intersil does not
adopt and is not responsible for any forward-looking statements and
projections made by others in this press release. Intersil's Annual
Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q,
recent Current Reports on Form 8-K and other Intersil filings with
the U.S. Securities and Exchange Commission (which you may obtain for
free at the SEC's web site at http://www.sec.gov) discuss some of the
important risk factors that may affect our business, results of
operations and financial condition. These forward-looking statements
are made only as of the date of this communication and Intersil
undertakes no obligation to update or revise these forward-looking
statements.
-- FINANCIAL TABLES TO FOLLOW --
Intersil Corporation
Consolidated Statements of Operations
Unaudited
(In US$ millions, except shares and per share amounts)
Three Quarters
Quarters Ended Ended
------------------------- ----------------
October October October October
2, 3, July 3, 2, 3,
2009 2008 2009 2009 2008
------- ------- -------- ------- -------
(Q3 2009)(Q3 2008)(Q2 2009)(Q3 2009)(Q3 2008)
Net revenues $ 168.3 $ 218.7 $ 147.3 $ 433.7 $ 638.6
Cost of revenues 76.5 95.6 67.5 197.0 283.4
------- ------- -------- ------- -------
Gross profit 91.8 123.1 79.8 236.8 355.2
Expenses
Research and development 38.4 35.1 37.0 108.2 108.9
Selling, general and
administrative 32.5 31.8 29.8 88.1 95.6
Amortization of purchased
intangibles 3.0 2.8 3.4 9.9 8.8
Restructuring and other
related activities 0.4 0.6 0.4 2.3 5.5
In-process research and
development charge (credit) - 2.6 - (0.2) 2.6
------- ------- -------- ------- -------
Operating income from
continuing operations 17.5 50.0 9.2 28.4 133.8
Gain (loss) on deferred comp
investments 1.0 (1.3) 1.1 1.8 (1.4)
Loss on investments, net (14.3) - - (14.3) (6.4)
Interest income, net 1.0 3.1 1.4 3.9 12.1
------- ------- -------- ------- -------
Income from continuing
operations before income
taxes 5.2 51.9 11.6 19.8 138.1
Income tax expense (benefit)
from continuing operations (7.0) 4.6 5.4 (1.1) 5.1
------- ------- -------- ------- -------
Income from continuing
operations 12.3 47.3 6.2 20.9 132.9
Discontinued operations
Income tax benefit from
discontinued operations - - - - (19.4)
------- ------- -------- ------- -------
Income from discontinued
operations - - - - 19.4
------- ------- -------- ------- -------
Net income $ 12.3 $ 47.3 $ 6.2 $ 20.9 $ 152.4
======= ======= ======== ======= =======
Earnings per share:
Basic:
Continuing operations $ 0.10 $ 0.38 $ 0.05 $ 0.17 $ 1.07
Discontinued operations - - - - 0.16
------- ------- -------- ------- -------
Net income per share $ 0.10 $ 0.38 $ 0.05 $ 0.17 $ 1.23
======= ======= ======== ======= =======
Diluted:
Continuing operations $ 0.10 $ 0.38 $ 0.05 $ 0.17 $ 1.06
Discontinued operations - - - - 0.16
------- ------- -------- ------- -------
Net income per share $ 0.10 $ 0.38 $ 0.05 $ 0.17 $ 1.22
======= ======= ======== ======= =======
Weighted average shares:
Basic 122.3 123.2 122.2 122.1 124.2
======= ======= ======== ======= =======
Diluted 122.3 124.4 122.2 122.2 125.3
======= ======= ======== ======= =======
Other financial
metrics: Quarters Ended Three Quarters Ended
-------------------------------- ---------------------
Stock-based
compensation
expense by October 2, October 3, July 3, October 2, October 3,
classification: 2009 2008 2009 2009 2008
---------- ---------- ---------- ---------- ----------
Cost of revenues $ 0.6 $ 0.8 $ 0.7 $ 1.9 $ 2.9
Research and
development 2.9 3.2 3.1 9.3 $ 10.3
Selling, general
and administrative 3.4 4.2 4.6 9.7 $ 11.0
Note: Totals and percentages may not add or calculate precisely due to
rounding.
Intersil Corporation
Additional Information
Unaudited
(In US$ millions)
Quarters Ended
-----------------------
October October
2, 3, July 3,
2009 2008 2009
------- ------- -------
(Q3 2009)(Q3 2008)(Q2 2009)
Cash flow information:
Cash from operations $ 34.8 $ 39.0 $ 31.3
Net capital expenditures 2.2 8.7 1.3
------- ------- -------
Free cash flow $ 32.6 $ 30.3 $ 30.0
EBITDA:
Operating income $ 17.5 $ 50.0 $ 9.2
Depreciation 5.1 5.6 5.1
Intangible amortization 3.0 2.8 3.4
In-process R&D charge - 2.6 -
Stock-based compensation 6.9 8.2 8.4
------- ------- -------
EBITDA $ 32.5 $ 69.3 $ 26.1
Six-month backlog $ 143.1 $ 130.3 $ 139.6
Effect of certain noncash and unusual items:
Amortization of intangibles (net of tax) $ 2.6 $ 2.4 $ 2.9
Restructuring and other related activities
(net of tax) 0.3 0.5 0.3
In-process R&D charge - 2.6 -
Impairment of ARS (net of tax) 4.6 - -
Stock-based compensation (net of tax) 5.9 6.9 7.1
Unusual tax charge related to international HQ move - - 3.4
Note: Totals and percentages may not add or calculate precisely due to
rounding.
Intersil Corporation
Consolidated Balance Sheets
Unaudited
(In US$ millions)
October 2, Jan. 2,
2009 2009
--------- ---------
Assets
Current assets:
Cash, cash equivalents and short-term investments $ 329.6 $ 312.6
Trade receivables, net 71.0 66.6
Inventories, net 91.8 109.6
Prepaid expenses and other current assets 11.1 12.1
Deferred income taxes 25.7 35.5
--------- ---------
Total current assets 529.4 536.5
Other assets:
Property, plant and equipment, net 102.5 112.8
Purchased intangibles, net 29.5 29.0
Goodwill 314.9 313.7
Deferred income taxes 81.6 47.0
Long-term investments 64.2 81.3
Other 14.7 13.2
--------- ---------
Total other assets 607.4 597.1
--------- ---------
Total assets $ 1,136.8 $ 1,133.6
========= =========
Liabilities and shareholders' equity
Current liabilities:
Trade accounts payable $ 33.0 $ 22.3
Income taxes payable 11.0 4.0
Deferred net revenue 10.5 10.6
Other accrued items 60.7 71.0
--------- ---------
Total current liabilities 115.1 108.0
Total shareholders' equity 1,021.7 1,025.6
--------- ---------
Total liabilities and shareholders' equity $ 1,136.8 $ 1,133.6
========= =========
Note: Totals and percentages may not add or calculate precisely due to
rounding.
SOURCE: Intersil
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