Date: 29/01/2009

Intersil fiscal 2008 revenues up by 2% compared 07, but down by 40% in recent quarter

Intersil's net revenue for the fourth quarter of fiscal 2008 was $131.1 million, a 38% decline from $212.6 million in the fourth quarter of 2007 and a 40% decline from $218.7 million in the third quarter of 2008. For the fiscal year ended January 2, 2009, net revenue was $769.7 million, a 2% increase compared with $757.0 million reported for fiscal year 2007.

Generally Accepted Accounting Principles (GAAP) Results
The Company reported a net loss of $1,182.7 million or $9.68 per share for the fourth quarter of 2008, compared with net income of $40.3 million, or $0.31 per diluted share in the same quarter last year. For the third quarter of 2008, the Company reported net income of $47.3 million, or $0.38 per diluted share. Net loss was $1,030.3 million or $8.33 per share for fiscal year 2008 as compared with net income of $140.5 million or $1.05 per diluted share in the previous fiscal year.

Non-GAAP Results
Non-GAAP net income for the fourth quarter declined by 75% to $13.0 million and non-GAAP diluted earnings per share declined 72% to $0.11 compared to the same quarter last year. This decline is primarily due to a significant decrease in sales, reflecting the global decline in economic conditions in the fourth quarter of 2008.

Intersil’s fourth quarter revenues by end market were as follows: high-end consumer, 25.2% of revenues; computing, 22.4% of revenues; industrial, 26.9% of revenues; and communications, 25.5% of revenues.

“This has been a very challenging quarter for the entire semiconductor industry, but Intersil responded quickly to the downturn,” said Dave Bell, Intersil’s President and Chief Executive Officer. “Cost savings realized by our recent restructuring enabled us to offset increased investments in R&D from the recent Kenet and Zilker Labs acquisitions. In addition, we have taken significant steps to reduce our inventory, as well as inventory in the supply chain. We are pleased that despite the steep revenue decline, we generated over $50 million in free cash flow during the quarter.”

“We continue to have one of the strongest balance sheets in the industry with $313 million in cash and short-term investments and no debt. I am pleased that we were once again able to take advantage of the weak economy to close another very strategic acquisition with the purchase of Zilker Labs, a leader in digital power management,” continued Bell.