Date: 21/10/2010

Intersil reports flat q-o-q revenue growth in its 3rd Q 2010 revenues

Intersil has reported a net revenue $219.1 million for the third quarter 2010, a 30% increase from $168.3 million in the third quarter of 2009, and essentially flat compared to the $219.9 million in the second quarter of 2010. Intersil's third quarter revenues ranked by end market were as follows: industrial, 34.4%; high-end consumer, 23.6%; computing, 21.2%; and communications, 20.8%.

Gross margin for the third quarter increased to a record 58.9%, compared with gross margin of 54.6% in the same quarter last year, and 58.3% in the second quarter of 2010.

Operating margin increased to 17.5% during the third quarter. Net income increased to $32.1 million, or $0.26 per diluted share, compared with net income of $12.3 million, or $0.10 per diluted share, in the same quarter last year, and net loss of $59.4 million, or a loss of $0.48 per diluted share, in the second quarter of 2010. Excluding the effects of intangible amortization and one-time acquisition charges, operating income was $48.2 million, or 22.0% of revenue, and excluding discrete tax benefits, net income was $34.5 million, or $0.28 per diluted share.

"Intersil's third quarter revenues were similar to the prior quarter despite significantly reduced shipments of our PC power management products, " said Dave Bell, Intersil's President and Chief Executive Officer. "We continued to make excellent progress in transforming our business towards higher margin industrial markets. The entire company also did an excellent job of managing operating expenses and manufacturing costs, allowing us to achieve record gross margin and meet our earnings guidance. "

"We expect the recent inventory correction to end and shipments to become better aligned with consumption during the fourth quarter. Design win activity remains strong across all end markets, and we are gaining share in industrial, our largest end market. Additionally, our business continues to benefit from our manufacturing capacity and low lead times, " said Bell.

Intersil's revenue indicates overall semiconductor market in the 2nd half 2010 is not that great as first half of 2010