News & Events
Intersil Revises First Quarter Outloot
Announces Stock Repurchase Program
IRVINE, CA.,. — March 8, 2001 — Intersil Holding Corporation (NASDAQ: ISIL), a leading provider of silicon technology for wireless access and communications analog markets, today announced that revenue and earnings for the first quarter of 2001 will be lower than previously expected due to slowing demand across the semiconductor industry. In addition, Intersil announced that it has received authorization from its Board of Directors to repurchase up to $50 million of the company’s stock.
Intersil began experiencing orders softness in the fourth quarter of 2000 as customers adjusted inventory levels due to weakening global market conditions. The inventory correction is taking longer than previously anticipated and market conditions have not improved during the first quarter of 2001.
Intersil now believes that first quarter revenue — excluding sales from its Discrete Power products — will be approximately 25% lower than the fourth quarter of 2000, instead of a previously estimated decline of approximately 11%. Based on the revised revenue projection, the company estimates first quarter adjusted earnings per share of approximately $.05.
"Some of our networking and communications customers are experiencing an inventory correction and, in some cases, a slowdown in end-user demand. However, we are well-positioned in the short term, with a very strong balance sheet and the right target markets for long-term growth," said Intersil President & CEO Greg Williams.
Intersil expects to complete the sale of its Discrete Power product line to Fairchild Semiconductor this month. Intersil plans to use cash proceeds from the Discrete Power sale for complementary communications acquisitions, alliances and product development efforts.
"Intersil has strong competencies for wireless access and communications analog markets, a healthy balance sheet with substantial cash and no debt," added Williams. "We continue to win new customer designs for our existing PRISM® products and we are rolling out new generations of wireless access solutions that address attractive, emerging markets. Our wireless access business is complemented by a cash-generating analog business aimed at servers, high-speed computers and wired telecommunications. Intersil has the resources to pursue strategic acquisitions and has a strong business model for many years of sustainable growth. We believe the actions taken by the company the past two years have Intersil positioned for growth when overall economic conditions improve."
Intersil’s Board of Directors has authorized management’s plan to repurchase up to $50 million of the company’s stock on the open market. Under the buyback program, common stock may be purchased from time to time through open market transactions. The extent to which the company repurchases its shares and the timing of such purchases will depend upon market conditions and other corporate considerations.
About Intersil
Irvine, California-based Intersil is a leading supplier of semiconductors, reference designs and software for wireless access and communications markets. Intersil applies analog, mixed-signal and radio frequency (RF) expertise to products that enable wireless access to broadband media; provide reliable power management for PCs, file servers and portable information appliances; and convert analog and digital signals in cellular and Internet infrastructure. For more information about Intersil, visit the company's Internet homepage at www.intersil.com.
This press release contains statements relating to certain projections and business trends concerning the wireless access, communications analog and broadband wireless access markets that are forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended. Such forward-looking statements are based upon management’s current expectations, estimates, beliefs, assumptions, and projections about our business and industry. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, 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. Important risk factors that may cause such material differences for Intersil in connection with the wireless access, communications analog and broadband wireless access markets include, but are not limited to, the risk that Intersil may not obtain the desired benefits from a stock repurchase, general economic conditions, the rate at which our present and future customers and end-users adopt Intersil’s wireless access and communications analog technologies and products; the rate at which our present and future customers and end-users adopt Intersil’s BWA technologies and products; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; silicon wafer pricing and the availability of foundry and assembly capacity and raw materials; intellectual property disputes; as well as other risk factors detailed from time to time in Intersil’s filings with the U.S. Securities & Exchange Commission ("SEC") which you may obtain for free at the SEC’s Web site, www.sec.gov. These forward-looking statements are made only as of the date of this press release and Intersil undertakes no obligation to update or revise these forward-looking statements.
PRISM is a registered trademark of Intersil Corporation.
