MILPITAS, CA — (Marketwire) — 07/27/11 — Intersil Corporation (NASDAQ: ISIL)
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 second quarter ended July 1, 2011.
Net revenue for the second quarter was $209.1 million, a 5% decrease from $219.9 million in the second quarter of 2010, and a 5% increase from $198.9 million in the first quarter of 2011. Changes in Intersil-s end market product mix during the second quarter of 2011 are summarized below:
Gross margin for the second quarter was 58.2%, compared with gross margin of 58.3% in the same quarter last year, and 57.8% in the first quarter of 2011.
Operating margin was 14.8% during the second quarter of 2011. Net income for the second quarter of 2011 increased to $21.8 million, or $0.17 per diluted share, compared with net loss of $59.4 million, or a loss of $0.48 per diluted share, in the same quarter last year, and net income of $14.1 million, or $0.11 per diluted share, in the first quarter of 2011.
Non-GAAP operating income during the second quarter of 2011 was $47.1 million, or 22.5% of revenue. Non-GAAP net income for the second quarter of 2011 was $37.3 million, or $0.30 per diluted share.
“Intersil-s sales grew by five percent sequentially during the second quarter, driven by strong growth in the industrial and consumer markets. Careful operating expense controls also resulted in excellent leverage with a seven cent sequential increase in non-GAAP EPS,” said Dave Bell, Intersil-s President and Chief Executive Officer.
At the end of the second quarter, Intersil-s cash and short term investments totaled approximately $417 million. Free cash flow was $45.7 million during the second quarter of 2011.
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 August 26, 2011 to shareholders of record as of the close of business on August 16, 2011.
Revenue is expected to be between $205 million and $213 million (-2% to +2% sequentially)
R&D expenses are expected to be approximately $49 million ($45 million excluding equity-based compensation)
SG&A expenses are expected to be approximately $37 million ($33.5 million excluding equity-based compensation)
Total equity-based compensation is expected to be approximately $8.0 million
Amortization of intangibles is expected to be approximately $7.1 million
GAAP earnings per diluted share are expected to be between $0.14 and $0.17
Non-GAAP earnings per diluted share (excluding amortization of intangibles, one-time items and equity-based compensation) are expected to be between $0.24 and $0.27
“New product introductions have been very well received and are driving market share gains in several end markets. For instance, our Techwell product lines are seeing robust growth, driven by worldwide security surveillance needs and automotive backup cameras,” said Bell.
Intersil will discuss its second quarter 2011 financial results during its scheduled conference call following the market close on July 27th. To participate in the conference call please dial (888) 396-2356, and international participants please dial (617) 847-8709, using the password 85563572 at approximately 1:40 p.m. Pacific Time. You may also listen to the call via webcast on Intersil-s investor relations website: . A copy of the presentation accompanying the conference call is also available on Intersil-s website.
A replay of the call will be available for two weeks following the conference call on Intersil-s website, or may be accessed by dialing (888) 286-8010, international dial (617) 801-6888, using the password 59728887.
is a leader in the design and manufacture of high-performance analog, mixed-signal and power management semiconductors. The Company-s products address some of the fastest growing markets within the communications, computing, high-end consumer and industrial electronics markets. For more information about Intersil or to find out how to become a member of our winning team, visit the Company-s web site and career page at .
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the reconciliations of such measures in the tables on page eight at the end of this release. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Intersil-s performance and liquidity by excluding certain expenses and expenditures that may not be indicative of Intersil-s recurring core business operating results. During the quarter ended July 1, 2011, we revised current quarter and historical presentation of non-GAAP financial information to exclude equity-based compensation in addition to previously excluded intangible amortization, acquisition charges, certain tax adjustments and one-time restructuring costs. Management feels this change aligns our non-GAAP presentation with that of our closest peers and increases comparability of our results with published earnings estimates widely available on the Internet.
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 ) 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.
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