News & Events
Intersil Corporation Reports Fourth Quarter and Fiscal 2007 Financial Results

— Achieves record net revenues of $212.6 million in the fourth quarter; 17% increase from 2006~— Increases quarterly dividend by 20% to $0.12 per share

Milpitas, CA, January 23, 2008 – Intersil Corporation (NASDAQ Global Select: ISIL), a world leader in the design and manufacture of high performance analog semiconductors, today reported financial results for the quarter ended December 28, 2007. Net revenues for the fourth quarter were $212.6 million, a 17% increase from $181.1 million in the fourth quarter of 2006 and a 7% increase from $198.3 million in the third quarter of 2007.

Generally Accepted Accounting Principles (GAAP) Results
For the fourth quarter of 2007, gross margins were 57.2%. This compares to gross margins of 57.8% in the same quarter last year, and 56.4% in the third quarter of 2007. Operating margins from continuing operations were 22.6%, as compared to operating margins of 20.4% in the same quarter last year, and 19.5% in the third quarter of 2007. Net income from continuing operations was $42.4 million, or $0.32 earnings per diluted share from continuing operations, as compared to net income of $38.3 million, or $0.28 earnings per diluted share in the same quarter last year. For the third quarter of 2007, the Company reported net income from continuing operations of $36.0 million, or $0.27 earnings per diluted share.

For the year ended December 28, 2007, net revenue was $757.0 million, a 2.2% increase from $740.6 million for 2006. Gross margins were 57.0% as compared to 57.4% for the previous year. Operating margins were 20.1% as compared to 20.5% for the previous year. Net income from continuing operations was $142.7 million or $1.07 earnings per diluted share as compared to $151.4 million or $1.06 earnings per diluted share for the previous year.

Non-GAAP Results
For the fourth quarter of 2007, non-GAAP gross margins were 57.6%. This compares to gross margins of 58.2% for the same quarter last year, and 57.4% for the third quarter of 2007. Operating margins were 28.9%, as compared to operating margins of 28.3% for the same quarter last year, and 28.6% for the third quarter of 2007. Net income was $51.9 million, or $0.39 earnings per diluted share. This compares to net income of $48.2 million, or $0.34 earnings per diluted share for the same quarter last year, and $49.0 million, or $0.36 earnings per diluted share for the third quarter of 2007.

For the year ended December 28, 2007, gross margins were 57.7% as compared to 57.8% for the previous year. Net income was $183.4 million or $1.35 earnings per diluted share. This compares to net income of $179.9 million or $1.25 earnings per diluted share for 2006.

“2007 was a solid year for Intersil,” said Rich Beyer, Intersil’s Chief Executive Officer. “We achieved record net revenues of $757 million for the year. Despite the softness in the analog market in 2007, we grew our revenues by 2% and our non-GAAP earnings per share by 8% over 2006.”

By end market, Intersil’s fourth quarter revenues were as follows: high-end consumer (29.4% of revenues), computing (30.3% of revenues), industrial (21.7% of revenues), and communications (18.6% of revenues). “Revenues in the computing market experienced impressive sequential growth this quarter due to strong seasonal demand and the market acceptance of our new products, particularly in the notebook area. Consumer was also up sequentially, as all three vertical markets - handheld, LCD displays, and optical storage - saw strong sequential growth. Revenues in the industrial and communications markets were essentially flat, in line with normal seasonality,” said Dave Bell, President and Chief Operating Officer.

During the quarter the Company repurchased approximately $115 million or 4.2 million shares of its stock, under a previously announced stock repurchase program. In 2007, Intersil generated more than $214 million in free cash flow and returned approximately $488 million to its investors in the form of stock repurchases and cash dividends. The Company’s Board of Directors has also authorized the payment of a quarterly dividend of $0.12 per share of common stock. The payment of this dividend will be made on February 22, 2008 to shareholders of record as of the close of business on February 12, 2008.

Business Outlook
“We are in a period of macro-economic uncertainty for the industry,” said Mr. Beyer. “However, demand for our products is basically consistent with normal seasonality. In the first quarter, we typically experience a sequential decline in our consumer and computing markets. As a result, we currently anticipate Intersil’s revenues for the first quarter to be down 3% to 6% sequentially. We expect GAAP earnings per diluted share of approximately $0.29 to $0.30 and non-GAAP earnings per diluted share of approximately $0.35 to $0.36.”

Investors and interested parties within the United States may listen to Intersil's conference call on January 23rd at 1:45 p.m. Pacific/4:45 p.m. Eastern by dialing (888) 680-0878 using the password “Intersil.” International callers may connect to the call by dialing (617) 213-4855. A replay of Intersil’s conference call will be available for two weeks by dialing (888) 286-8010 in the U.S. or (617) 801-6888 internationally using the access code "67964536". A webcast replay of the conference call will be available for two weeks on the Company’s web site at http://www.intersil.com/investor. A copy of this press release may be found on the Company’s web site at http://www.intersil.com/investor.

About Intersil
Intersil Corporation is a world leader in the design and manufacture of high-performance analog semiconductors. The Company'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-swap and hot-plug controllers, linear regulators, power sequencers, supervisory ICs, bridge drivers, PWM controllers, switching DC/DC regulators and power MOSFET drivers; optical storage laser diode drivers; DSL line drivers; video and high-performance operational amplifiers; 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 the Company's web site and career page at www.intersil.com.

NON-GAAP REPORTING
In addition to GAAP reporting, Intersil reports net income or loss, as well as earnings per share, gross margin and operating margin on a non-GAAP basis. This non-GAAP earnings information excludes stock-based compensation expense, amortization of intangibles and unusual items and their related tax effects. Intersil believes this non-GAAP earnings information provides meaningful insight into the Company’s on-going performance and has therefore chosen to provide this information to investors for a more consistent basis of comparison and to emphasize the results of on-going operations. Intersil also uses this information internally to evaluate and manage the Company. A reconciliation between GAAP and non-GAAP net income is included in the tables below.

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 Corporation's ("Intersil") 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 ("SEC") (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.