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Technology Stocks : Intersil - ISIL -- Ignore unavailable to you. Want to Upgrade?

To: Dexter Lives On who wrote (425)	10/30/2002 8:59:37 AM
From: Clarksterh	Read Replies (1) \| Respond to of 467

Intersil Corporation Announces Third Quarter 2002 Financial Results Wednesday October 23, 4:09 pm ET IRVINE, Calif.--(BUSINESS WIRE)--Oct. 23, 2002--Intersil Corporation (Nasdaq:ISIL - News): Grows revenue 9% over previous quarter and 43% over prior year Improves adjusted net income to $26.6 million or $0.19 per share Beats company revenue and earnings guidance Intersil Corporation (Nasdaq:ISIL - News), a world leader in the design and manufacture of high performance analog and wireless networking solutions, today reported financial results for the third quarter ended October 4, 2002. Net revenue for the third quarter was $191.3 million, an increase of 9% from the adjusted net revenue of the previous quarter and 43% from a year ago. Excluding the amortization of intangibles and the tax effect of acquisition related expenses, adjusted net income for the third quarter was $26.6 million or $0.19 per diluted share of common stock. This compares to adjusted net income of $23.0 million or $0.16 per diluted share for the second quarter of 2002 and $12.2 million or $0.09 per diluted share for the comparable quarter of 2001. Both revenue and adjusted earnings per share (EPS) results exceeded guidance provided in Intersil's financial update on September 4, 2002. Net income on a generally accepted accounting principles (GAAP) basis for the third quarter of 2002 was $3.6 million or $0.03 per diluted share, compared to a net loss of $18.3 million or $0.15 per diluted share for the prior quarter and a net loss of $3.3 million or $0.03 per diluted share for the same period a year ago. Intersil's third quarter gross margins reached 54.0%, an increase of 20 basis points from the previous quarter and an increase of 300 basis points from a year ago. Gross margin improvement came primarily from increasing sales volumes and cost reduction programs, resulting in the sixth consecutive quarter of gross margin expansion. "With the integration of Elantec virtually complete, Intersil continued its solid execution in the third quarter and continues to be among the fastest growing companies in the semiconductor industry," said Rich Beyer, Intersil's president and CEO. "Our focus on high growth markets is enabling Intersil to outpace the overall industry and to deliver better than expected financial results. We experienced particularly strong demand for wireless networking and power management products, with revenues up 26% and 7% from the previous quarter, respectively. Intersil improved adjusted earnings per share 19% sequentially and 111% on an annual basis, marking our fifth consecutive quarter of EPS improvement. "The company's balance sheet remains strong with approximately $600 million in cash and no debt," added Beyer. "Our days sales outstanding (DSO) remains slightly below 45 days and the company generated $21 million in cash flow from ongoing operating activities during the quarter." Results by Product Group Revenue for Intersil's Power Management products reached a record $46.9 million during the third quarter, an increase of 7% from the prior quarter and 16% from the third quarter of 2001. Intersil continues to gain market share in power management for desktop PCs and high-end file servers, while ramping product sales to support notebook PCs, double data-rate (DDR) memory and high-end graphics cards. Among a series of design wins in the quarter, Intersil announced that Gigabyte, a leading PC motherboard manufacturer based in Taiwan, has selected Intersil's Endura(TM) products to power both the microprocessor and double data rate (DDR) memory for their award-winning Intel® Pentium® 4 platforms that incorporate DDR memory. Sales of Elantec(TM) products decreased 15% sequentially and increased 21% year-over-year during the third quarter to $25.0 million. The company's optical storage and flat panel display business was impacted during the third quarter as OEM customers adjusted inventories as a result of slowing PC sales. During the third quarter, Philips announced an alliance with Intersil to create a reference design based on a Philips chip set and an Elantec laser driver that will support the industry's fastest DVD recording. Intersil also reaffirmed its position as the world's leading supplier of laser drivers by introducing the industry's first laser diode driver to support the emerging Blu-Ray standard, which enables five times the capacity of today's DVD recording technology. Intersil's Standard Analog revenue increased 1% sequentially and 7% from the prior year to $33.9 million during the third quarter as we continue to see expanding acceptance of our analog MUX and interface products. Intersil's broad portfolio of Standard Analog products serves a wide array of computing, communications, test and instrumentation, medical and other applications. Intersil's Wireless Networking sales increased 26% from the previous quarter and 152% year-over-year to a record $74.6 million, due to continued demand for the company's industry-leading PRISM® wireless local area networking (WLAN) solutions. Microsoft Corporation announced the launch of a Wi-Fi-based (802.11b) Broadband Networking product line during the quarter that uses the Intersil PRISM WLAN solution and includes base stations, client cards and network and USB adapters. Intersil continued to expand its market leadership in wireless networking with the introduction of its 802.11a PRISM Indigo(TM) solution, which began production shipments during the quarter. PRISM Indigo offers the industry's best performance and lowest cost bill of materials. Intersil is now sampling its new PRISM Duette(TM), the industry's most highly integrated dual-band 802.11a, b, g WLAN solution, and will be demonstrating its capabilities for select customers, media and analysts at COMDEX Fall 2002. Automotive product sales were $10.8 million in the third quarter as Intersil ramped production to support last-time purchases from automotive customers. Intersil successfully completed the expected consolidation/closure of its Findlay, Ohio analog fab and completed the sale of the facility at the end of the quarter. Business Outlook Looking ahead, Beyer said, "As we are all aware, the semiconductor industry has not yet returned to robust growth and as a result we are more cautious in our near-term outlook. We now expect total year revenue to slightly exceed our previous guidance of $720 million, representing approximately 25% growth over 2001. We currently expect sequential revenue growth of 1 to 3% for the fourth quarter, and approximately 35% over the comparable quarter in the prior year. We anticipate adjusted earnings per share to grow about 5% sequentially to $0.20 as we continue to achieve sales growth while controlling expenses." Investors and interested parties within the United States may listen to Intersil's conference call today at 4:30 p.m. Eastern/1:30 p.m. Pacific by dialing 877/601-3546 and providing the operator with the pass code Intersil. International callers may connect to the call by dialing 712/271-0561. A replay of Intersil's conference call will be available for one week beginning at 6:30 p.m. Eastern/3:30 p.m. Pacific by calling 800/839-2338 in the US or 402/998-1081 Internationally. Confirmation code for the replay is 102302. A live webcast will also be available on Intersil's Investor Relations homepage at intersil.com. A replay will be available until October 30, 2002.