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Intersil Corporation Reports Second Quarter 2008 Financial Results
— Achieves net revenues of $216.2 million; a 21% increase from 2007
— Achieves GAAP earnings per share of $0.30; a 30% increase from 2007
Milpitas, CA, July 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
July 4, 2008. Net revenues for the second quarter were $216.2 million, a 21%
increase from $178.3 million in the second quarter of 2007, and a 6% increase
from $203.7 million in the first quarter of 2008.
Generally Accepted Accounting Principles (GAAP) Results
GAAP gross margins were 56.7% for the second quarter of 2008 compared to 57.2%
in the same quarter last year, and 53.8% in the first quarter of 2008. Operating
margins from continuing operations were 20.1% compared to 18.1% in the same
quarter last year, and 19.8% in the first quarter of 2008. Net income from
continuing operations was $38.0 million, or $0.30 earnings per diluted share, as
compared to net income of $31.2 million, or $0.23 earnings per diluted share in
the same quarter last year. For the first quarter of 2008, the Company reported
net income from continuing operations of $47.7 million, or $0.38 earnings per
diluted share, which included a significant one time tax benefit.
Non-GAAP Results
Non-GAAP net income increased 17% to $49.7 million and non-GAAP diluted earnings
per share increased 26% to $0.39 compared to the same quarter last year.
“Intersil had a solid quarter with impressive revenue and earnings growth year
over year,” said Dave Bell, Intersil’s President and Chief Executive Officer.
“As we enter the second half of 2008, we are well positioned and expect strong
demand across many of our product families.”
By end market, Intersil’s first quarter revenues were as follows: high-end
consumer (23.9% of revenues), computing (32.8% of revenues), industrial (21.2%
of revenues), and communications (22.1% of revenues). “The global consumer
market was soft in the second quarter, and we saw the impact through a moderate
revenue decline in the high end consumer space. However, revenues in the
computing end market experienced exceptional growth with strong demand for our
desktop and notebook power management solutions. Revenues from the industrial
market recovered nicely as military programs resumed their normal pace in the
second quarter, while revenues in the communications market were flat coming off
of a very strong first quarter,” said Mr. Bell.
During the quarter, the Company repurchased approximately $30 million or 1.1
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 August 22, 2008 to shareholders of record as of the
close of business on August 12, 2008.
Business Outlook
“For the third quarter, we are again cautious about the economy and its
impact on our business,” said Mr. Bell. “However, given the strength of orders
in the second quarter and our backlog entering the third quarter, we believe
that Intersil will again show sequential revenue growth of 1% to 3%. Excluding
the extra week in the second quarter, this represents sequential revenue growth
of 6% to 8%, which is in line with normal seasonality. We expect GAAP earnings
per diluted share of approximately $0.31 to $0.33 and non-GAAP earnings per
diluted share of approximately $0.39 to $0.40.”
Investors and interested parties within the United States may listen to
Intersil's conference call on July 23rd at 1:45 p.m. Pacific/4:45 p.m. Eastern
by dialing (866) 713-8563 using the password “Intersil”. International callers
may connect to the call by dialing (617) 597-5311. 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 “60609235". 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, including 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 and diluted
earnings per share on a non-GAAP basis. This non-GAAP earnings information
excludes stock-based compensation expense, amortization of intangibles, unusual
items and related tax effects. Intersil believes this 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 information 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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