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Intersil Corporation Reports First Quarter 2008 Financial Results
— Achieves net revenues of $203.7 million; a 21% increase from 2007
— Achieves GAAP sequential earnings per share growth of 19%
Milpitas, CA, April 16, 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 March 28,
2008. Net revenues for the first quarter were $203.7 million, a 21% increase
from $167.7 million in the first quarter of 2007 and a 4% decrease from $212.6
million in the fourth quarter of 2007.
Generally Accepted Accounting Principles (GAAP) Results
For the first quarter of 2008, gross margins were 53.8%. This compares to gross
margins of 57.4% in the same quarter last year, and 57.2% in the fourth quarter
of 2007. Gross margins in the first quarter include one-time charges of $5.9
million or 2.9% of net revenue. Operating margins from continuing operations
were 19.8%, as compared to operating margins of 19.7% in the same quarter last
year, and 22.6% in the fourth quarter of 2007. Net income from continuing
operations was $47.7 million, or $0.38 earnings per diluted share from
continuing operations, as compared to net income of $33.1 million, or $0.24
earnings per diluted share in the same quarter last year. For the fourth quarter
of 2007, the Company reported net income from continuing operations of $42.4
million, or $0.32 earnings per diluted share.
During the first quarter, the Company had several one-time events. The Company
incurred one-time charges totaling $9.5 million as it initiated a plan to
restructure certain operations and consolidate its internal manufacturing
facilities. The Company recorded a one-time tax benefit of $39.4 million, of
which $20.0 million was related to continuing operations. This resulted in a net
tax benefit of $9.8 million for the first quarter.
Non-GAAP Results
For the first quarter of 2008, non-GAAP gross margins were 57.2%. This compares
to gross margins of 58.0% for the same quarter last year, and 57.6% for the
fourth quarter of 2007. Operating margins were 28.1%, as compared to operating
margins of 27.1% for the same quarter last year, and 28.9% for the fourth
quarter of 2007. Earnings per diluted share were $0.37. This compares to $0.29
per diluted share for the same quarter last year, and $0.39 per diluted share
for the fourth quarter of 2007.
“Despite the challenging macro-economic environment, we achieved our
expectations for revenue and earnings,” stated Dave Bell, Intersil’s President
and Chief Executive Officer. “Our business continues to perform well as our
earnings grew faster than our revenues. We are pleased with our constant
progress in expanding our revenue stream across a broad portfolio of products.”
By end market, Intersil’s first quarter revenues were as follows: high-end
consumer (26.9% of revenues), computing (28.0% of revenues), industrial (21.6%
of revenues), and communications (23.5% of revenues). “As expected, we saw
sequential revenues decline in the high end consumer and computing markets, in
line with normal seasonality. Revenues from the industrial market were down
moderately with decline in some military products. Revenues in the
communications market experienced sequential growth due to typical seasonality
and traction within our general purpose product portfolio,” said Mr. Bell.
During the quarter, the Company repurchased approximately $80 million or 3.4
million shares of its stock, under a previously announced stock repurchase
program. 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 May 16, 2008 to shareholders of record as of the close
of business on May 6, 2008.
Business Outlook
“For the second quarter, we expect Intersil to return to growth as our design
win momentum continues to gain traction,” said Mr. Bell. “We expect the second
quarter to show sequential growth of approximately 5% to 8% from the first
quarter. As we indicated, we will have an extra week in the second quarter,
which should account for approximately 5% sequential growth. Although our
overall business remains strong, we remain cautious given the economic
uncertainties of the global markets. As a result, we expect the business,
excluding the extra week, to be flat to up 3% sequentially. We expect GAAP
earnings per diluted share of approximately $0.29 to $0.31 and non-GAAP earnings
per diluted share of approximately $0.38 to $0.39.”
Investors and interested parties within the United States may listen to
Intersil's conference call on April 16th at 1:45 p.m. Pacific/4:45 p.m. Eastern
by dialing (866) 831-6272 using the password “Intersil”. International callers
may connect to the call by dialing (617) 213-8859. 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 “21770757". 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.
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