UPDATE 1-Intersil cuts Q4 outlook; says CFO resigns
Wed Dec 3, 2008 5:54pm EST
Dec 3 (Reuters) - Chipmaker Intersil Corp (ISIL.O: Quote, Profile, Research, Stock Buzz) cut its fourth-quarter outlook, citing a weak economy, and said its Chief Financial Officer David Zinser resigned to pursue another opportunity, sending its shares down 14 percent.
Jonathan Kennedy, Intersil's corporate controller, has assumed Zinser's responsibilities for an interim period, the company said in a statement.
The Milpitas, California-based company now sees fourth-quarter earnings of 9 cents to 12 cents a share, down from its prior estimate of 22 cents to 26 cents a share.
The company expects revenue of $125 million to $135 million -- or a 37 percent to 41 percent fall in revenue -- for the period. In October, the company had forecast revenue decline of about 20 percent to 25 percent for the fourth quarter.
Analysts on an average were expecting earnings of 23 cents, excluding special items, on revenue of $168.5 million, according to Reuters Estimates.
"About five percentage points of this reduction is due to our own actions to reduce distributor inventory in the PC channel, and the balance is the result of a very broad-based reduction in bookings during the quarter," Chief Executive Dave Bell said in a statement.
In November, Intersil, which makes semiconductors for flat panel displays, cell phones, handheld systems and notebooks had announced a 9 percent reduction in jobs.
Shares of the company fell to $7.80 in trading after the bell. They closed at $9.08 Wednesday on Nasdaq. (Reporting by Shrutika Verma in Bangalore; Editing by Amitha Rajan)
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