 |
|
Intersil Corporation Reports Third Quarter 2005 Financial Results
-- Revenue up 24% from same quarter last year, and up 13% sequentially
-- Non-GAAP net income up 90% from same quarter last year, and up 43% sequentially
Milpitas, CA, October 19, 2005 – Intersil Corporation (NASDAQ: ISIL), a world leader in the design and
manufacture of high performance analog semiconductors, today reported financial results for the quarter ended
September 30, 2005. On a generally accepted accounting principles (GAAP) basis, net revenue was $157.2 million
for the third quarter of 2005, up 24% from the third quarter of 2004, and up 13% from the second quarter of
2005. Net income for the third quarter of 2005 was $27.2 million or $0.19 earnings per diluted share as
compared to a net loss from continuing operations of $24.5 million or $0.17 per share in the third quarter of
2004. For the second quarter of 2005, net income was $17.3 million or $0.12 earnings per diluted
share.
Non-GAAP net income for the third quarter of 2005 was $30.8 million or $0.21 earnings per diluted share. This
compares to non-GAAP net income of $16.2 million or $0.11 earnings per diluted share for the third quarter of
2004 and $21.5 million or $0.15 earnings per diluted share for the second quarter of 2005.
“As a pure-play high performance analog company Intersil delivered a record quarter in sales and earnings.
Sales grew 13% sequentially, and non-GAAP net income grew by over 40% sequentially,” stated Rich Beyer,
Intersil’s CEO and president. “Our growth and cost control initiatives are clearly paying off in the form of
increased profits. Gross margins increased to over 56%, and our operating income improved to more than 22% of
sales.”
By end market, Intersil’s third quarter sales were as follows: high-end consumer (28% of sales), industrial
(24%), communications (24%), computing (24%). “We are exceptionally pleased with our continued broad-based
success across many product families and applications, as all four of our end markets experienced sequential
growth,” said Mr. Beyer. “The growth in the consumer market was driven by our handheld and display businesses.
The computing market grew better than typical seasonality, and we are particularly pleased by our success in
our notebook business. The communications market had a strong quarter, driven by demand for our DSL and
infrastructure power management products. The industrial market also experienced sequential growth, driven by
growth across several general purpose product families.”
The Company reported gross margins of 56.2% for the quarter, compared to 55.5% in the second quarter of 2005
while improving inventory turns from 2.7 to 3.0. Operating cash flow for the third quarter was over $35
million, or 23% of sales, and the Company exited the third quarter with $691 million in cash and marketable
securities, and no debt. During the quarter, the Company repurchased approximately $30.4 million, or 1.5
million shares of stock.
Business Outlook
"Our broad-based market success has generated solid momentum heading into the fourth quarter,” said Mr. Beyer.
“As a result, we are well positioned to once again grow sequentially. We expect our fourth quarter revenue to
grow between 5% to 7% from the third quarter. We also expect non-GAAP earnings per diluted share of
approximately $0.23 to $0.24.”
Investors and interested parties within the United States may listen to Intersil's conference call on October
19th at 4:45 p.m. Eastern/1:45 p.m. Pacific by dialing (800) 659-2056 and providing the operator with the
conference and the pass code "INTERSIL." International callers may connect to the call by dialing (617)
614-2714. A replay of Intersil's conference call will be available for one week beginning on October 19th at
7:00 p.m. Eastern/ 4:00 p.m. Pacific by calling (888) 286-8010 in the U.S. or (617) 801-6888 internationally.
The pass code for the replay is "53046125". A live web cast will also be available on Intersil's Investor
Relations homepage at http://www.intersil.com/investor and a replay will be available until October 26,
2005.
A copy of this press release may be found on Intersil’s website at http://www.intersil.com/cda/pressroom.
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, handhelds 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.
NON-GAAP REPORTING
In addition to GAAP reporting, Intersil reports net income or loss, as well as earnings per share and gross
margin, on a non-GAAP basis. This non-GAAP earnings information excludes amortization of intangibles and other
unusual items, such as gains or losses on strategic investments or exited product groups, impairment and
restructuring costs and 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’s operations and to determine
incentive compensation. 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, the
Company’s 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 the Company’s 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.
|
|
|
