News & Events
Intersil Corporation Announces 18% Orders Growth In First Quarter As An Independent Semiconductor Company

PALM BAY, FL, October 29, 1999 – Intersil Corporation today reported first quarter sales of $133.9 million and operating income of $7.5 million before one-time charges associated with purchasing the business from Harris Corporation in August. Compared to the first quarter of last fiscal year, operating income was up 39%, sales were up 9% and orders were up 18%.

"We are extremely pleased with the results of our first quarter as a new company," said Greg Williams, president and chief executive officer. "Orders steadily increased throughout our first quarter, and we experienced particularly strong growth in orders in September. In addition, Intersil’s orders were up seven percent sequentially during a quarter which is seasonally weak."

Williams cited strong orders demand for products in Intersil’s PRISM Wireless business – up 103% from the first quarter of fiscal 1999 – and its Power business – up 45% year on year. "We continue to see strong market acceptance for our PRISM* Wireless LAN chip set and announced several new customer partnerships during our first quarter as an independent semiconductor company. We have started shipments of our new 11 megabit-per-second chip set, PRISM II, using Intersil’s medium access controller technology obtained through our acquisition of Choice Microsystems in February. PRISM II gives our customers the ability to offer Ethernet-equivalent wireless access systems for the enterprise, small office and consumer markets."

"We also saw strong orders for our analog and mixed-signal products," Williams added, "including our new Voice-over-Internet Protocol (VoIP) SLICs, power management ICs, high-speed data converters and other high performance analog products."

During its first quarter of operations as Intersil, the company introduced a number of new products, including its new multi-phase analog/mixed-signal power controller IC for powering Intel’s next-generation microprocessor, and its SMPS (switch-mode power supply) IGBT for power quality systems supporting communication networks and the Internet.

Intersil also reported improvements in gross margins over quarter one of fiscal 1999. "As Intersil, we have significantly reduced our overhead costs," said Williams. "Operating margins improved as a result of significant cost reductions completed in the past 18 months. Overall, we feel that we have a strong business model and we continue to launch innovative new products that are being widely accepted in our target markets."

Intersil formed three business units following its divestiture from Harris: Analog & Mixed-Signal IC Products, comprised of signal processing, power management and space & defense ICs; PRISM Wireless Products, consisting of wireless data chips, chip sets, development tools and software; and Power Products including MOSFETs and IGBTs.

Looking ahead, Mr. Williams said, "We’re focused on target markets that have high growth potential and have forged partnerships with industry-leading customers to ensure access to these markets. Our company is gaining momentum as semiconductor market conditions continue to improve."

About Intersil
Intersil Corporation uses analog, mixed-signal, wireless communications and power technologies to develop advanced integrated circuits and power semiconductors for high-growth segments of the communications, power and space/defense markets. Intersil Corporation employs 5,800 worldwide and utilizes the rich intellectual property of more than 1,400 patents. The company’s web site is located at www.intersil.com.

This press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect management's current assumptions and estimates of future performance and economic conditions. Specific risks include worldwide demand and product pricing for integrated circuits; expenses and other difficulties resulting from "Year 2000" problems in computer-based systems used by Intersil, its suppliers or its customers; general economic conditions and specific conditions in the markets we address; reductions in the U.S. and worldwide defense and space budgets; and other factors. In addition, Intersil cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends and events to differ materially from those matters expressed in or implied by such forward-looking statements.

PRISM is a registered trademark of Intersil Corporation.