International Rectifier Reports December-Quarter Results
biz.yahoo.com
EL SEGUNDO, Calif.--(BUSINESS WIRE)--Jan. 24, 2002--International Rectifier Corporation (NYSE:IRF) today reported net income of $10.8 million (or $0.17 per share) on revenues of $172.1 million for the quarter ended December, compared to net income of $46.5 million (or $0.71 per share) on revenues of $268.1 million in the comparable prior-year quarter. In the immediately-preceding quarter, the company posted revenue of $168.5 million and income of $9.6 million (or $0.15 per share).
Revenues from proprietary products (analog ICs, advanced-circuit devices, and power systems) rose sequentially by 5 percent. These products now comprise over half of total revenues, compared to 31 percent in the prior-year quarter. Orders for proprietary products grew sequentially by 7 percent and, for the fourth consecutive quarter, represented more than half of total bookings. Distributor orders grew sequentially by 12 percent last quarter, the strongest growth since the quarter ended March 2000. Overall orders grew sequentially by 3 percent.
December-quarter gross margin was 35.2 percent, compared to 35.6 percent in the immediately-preceding quarter. In the year-ago quarter, gross margin was 40.7 percent. Strength in higher-margin proprietary products helped to counter the impact of lower production volumes for components and a decline in component prices.
Shipments to the PC, automotive, and consumer products segments helped to offset continued weakness in the telecom and industrial markets.
Chief Executive Officer Alex Lidow noted, ``Even during the worst downturn in semiconductor history, execution of our business model has made IR inherently more profitable. At what we believe to be the bottom of this industry cycle, our gross margins remain 8 percentage points above our trough in the previous cycle.''
During the quarter, IR continued to win significant new business that demonstrates the advantages of its proprietary technology and the strength of its franchise in target markets.
In the information technology market, analog ICs and advanced-circuit devices from IR won designs in Intel's most advanced desktop platforms, Dell's leading-edge mobile and desktop boxes, and new graphics processors from Nvidia and ATI.
In the automotive market, power systems from IR won designs with two industry leaders for variable-speed motor controls.
In the defense and aerospace arena, Lockheed Martin won one of the largest contracts in industry history with a prototype Joint Strike Fighter containing about $200,000 of IR content. Plans call for more than 3,000 aircraft over the life of the program.
In other defense and aerospace programs, IR's proprietary technology secured more than a dozen new contracts during the December quarter with customers including Lockheed, Northrop Grumman, and Raytheon.
Alex Lidow noted, ``IR continues to leverage proprietary products to increase our content in target applications and expand our market opportunities. A pick-up in the PC market, increased funding for defense and security programs, and greater penetration in the automotive market position IR for significant growth in the second half of this calendar year. We are generating cash from operations, and a cash balance of more than $800 million gives us considerable flexibility to pursue long-term strategic goals.''
For the six months ended December, net income of $20.4 million (or $0.31 per share) on revenues of $340.6 million compared to prior-year net income of $88.6 million (or $1.34 per share) on revenues of $517.5 million.
The company expects March-quarter revenues to be flat-to-up $10 million sequentially and June-quarter revenues to increase by $10 million to $20 million sequentially. |
