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© photong dreamstime.com Components | August 01, 2013

Intersil reports solid 2Q results

Intersil reports that revenue for the second quarter was $144.8 million, an increase of 10% sequentially and a decrease of 11% year over year.
Intersil's industrial and infrastructure revenue grew quarter-on-quarter by more than 10%, due primarily to strong demand for products in automotive, industrial and aerospace markets. Consumer revenue recovered during the quarter, increasing 25% sequentially and reflecting improved demand for products sold into handsets, tablets and gaming consoles. Computing revenue was down as expected as PC market conditions remained challenging.

The breakdown by end market was as follows:

2Q/20131Q/20132Q/2012
EndmarketRevenue $M% of Rev.Rev. $M% of Rev.Rev. $M% of Rev.
Industrial & infrastructure87.060%77.559%95.859%
Personal computing28.620%30.923%40.024%
Consumer29.220%23.318%27.217%
Revenue144.8100%131.7100%163.0100%

On a GAAP basis, gross margin of 55.2% improved from 53.8% the previous quarter and from 54.5% the same period last year. Operating expenses declined to $72.6 million resulting in income from operations of $7.3 million or 5.0% for the quarter. Net income of $1.0 million represent $0.01 earnings per diluted share.

The balance sheet remained strong. Cash flow from operations was $24.7 million and contributed to cash and short-term investment balances of $161.7 million at the end of the quarter. Intersil's Board of Directors authorized payment of a quarterly dividend of $0.12 per share of common stock. The payment of this dividend will be made on August 30, 2013 to shareholders of record as of the close of business on August 20, 2013.

Business Assessment and Strategic Direction

Following the appointment of Necip Sayiner as president and CEO, Intersil conducted a comprehensive review of its product lines and resource investments. "Our goal has been to identify areas where we have clearly differentiated core capabilities and significant growth prospects so that we can align our investments to capitalize on those opportunities," said Dr. Sayiner. "We have now established a strategic framework and implemented a set of immediate measures to redirect the company on a path to sustainable success."

Third Quarter 2013 Outlook

The following forward looking guidance is for the third quarter ending October 4, 2013, which is a typical 13-week period, and is based on current business trends and conditions:
  • Revenue: $146-$152 million
  • Gross margin: Flat
  • Operating expenses: $74-$81 million
  • (Loss) earnings per share: $(0.03) to $(0.01)

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