News & Events
Intersil Corporation Streamlines Operations to Invest in Growth; Reaffirms Second Quarter Guidance
-- Consolidates positions and reduces costs in manufacturing and administrative functions~-- Plans to accelerate investments in research and development and field sales~-- Expects to report sequential growth in revenue, gross margins and earnings for the second quarter
MILPITAS, CA, July 13, 2004 Intersil Corporation (NASDAQ: ISIL), a world leader in the design and manufacture of high performance analog semiconductors, today announced it is taking actions to consolidate activities and streamline costs in the manufacturing and support functions, which will provide additional funding to drive future growth. Intersil expects annualized savings of over $14 million as a result of these actions. A significant portion of the savings will be reinvested in areas such as research and development and field sales efforts. Intersil is opening new sales and technology centers near its largest potential global customers. The company will also accelerate staffing in high growth markets, such as China and Korea, and it will continue to add design resources to support its product families primarily in North America.
The company also confirmed its revenue and earnings guidance for the second quarter of 2004. Intersil will report its second quarter results on July 29, 2004. Concurrent with its earnings release, Intersil will provide third quarter guidance which, pending a favorable outcome from the Xicor shareholders vote earlier that day, will include two months of financial impact from the Xicor business.
This streamlining will result in the elimination of approximately 200 positions by the end of the calendar year. The company anticipates recording a charge of $6 million in the third quarter of 2004 related to the workforce reduction.
The reduction in force in our manufacturing and administrative areas is a difficult but necessary step, as we focus on faster growth, and strengthen our long term leadership position as a high performance analog company. We believe these actions will allow us to continue to compete in and expand our targeted analog markets. Weve added a substantial number of positions in engineering and sales over the past year and we expect to accelerate that pace of investment, said Rich Beyer, Intersils President and CEO. Our commitment to significantly increasing resources assigned to our R&D and sales efforts will position Intersil for even stronger growth in the future. About Intersil
Intersil Corporation, a NASDAQ-100 Index company, is a leader in the design and manufacture of high performance analog semiconductors. The company’s products address three of the industry’s fastest growing markets: flat panel displays, optical storage (CD and DVD recordable) and power management. Intersil products include power management devices for battery management, hot-swap and hot-plug controllers, linear regulators, supervisory ICs, 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 rad-hard 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.
This release may include "forward looking statements" that are subject to risks and uncertainties. For information identifying economic, political, climatic, currency, regulatory, technological, competitive and some other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see Intersil’s Safe Harbor Forward Looking Statement disclaimer found at http://www.intersil.com/legal.asp, as well as Intersil’s SEC filings as updated from time to time, found at http://www.sec.gov.
