Click on the advert above to visit the company web site

Product category: Power Supply ICs and Controllers
News Release from: International Rectifier
Edited by the Electronicstalk Editorial Team on 4 November 2003

Q1 figures show strong growth for IR

International Rectifier has reported pro forma net income of $19.8 million (or $0.30 per share) for the fiscal first quarter

International Rectifier has reported pro forma net income of $19.8 million (or $0.30 per share) for the fiscal first quarter, excluding charges for severance and restructuring activities previously announced in December 2002, on revenues of $234.1 million. The figures compare with pro forma net income of $15.4 million (or $0.24 per share) on revenues of $228.4 million from the June quarter.

Including the above charges of $4.0 million, IR posted a net income of $16.7 million (or $0.25 per share) for the fiscal first quarter compared to net income of $13.2 million (or $0.20 per share) including the $3.8 million charge in the June quarter.

For the fiscal first quarter ended September 2002, pro forma net income was $13.9 million (or $0.21 per share) on revenues of $212.2 million.

Net income was $11.0 million (or $0.17 per share) in that quarter.

Orders rose 5% from the June quarter and 30% from the prior year quarter, led by a continued increase in information technology orders, up 31% from the June quarter and more than double from a year ago.

PC orders grew dramatically from the June quarter fuelled by the continuing success of Intel's Centrino and Pentium M based products.

Over the past nine months, IT orders are up 70% from the same period a year ago and represented 47% of IR's total bookings in the September quarter.

Bookings for the consumer market also grew, increasing 13% from the June quarter led by new plasma and high definition TVs, energy-efficient home appliances, and lighting.

Bookings surged in the Asia Pacific region, up 18% from the June quarter and 55% from the prior year quarter.

Marking 10 years of production in China, IR intends to significantly expand its manufacturing capacity in the country, IR's fastest growing region.

This will be a multiphased programme with the first stage planned for completion in 2005.

ICs and advanced circuit devices sales grew 13% from the June quarter and 34% from the prior year quarter.

Proprietary products accounted for 59% of customer sales, up from 54% a year ago.

Overall, revenues increased 3% from the June quarter and 10% over the prior year quarter.

OEM shipments were driven by growth in the IT sector, up 18% from the June quarter and 54% from the prior year quarter.

Revenues from PCs increased 24% from the June quarter and 66% from the prior year quarter.

Distributor shipments to their end customers hit an 11-quarter record high while channel inventories dropped to a 3-year low.

Fiscal first quarter 2004 gross margin expanded 110 basis points from the June quarter to 35.9%.

Gross margin on incremental sales exceeded expectations at 79%.

The improvement resulted from a richer mix of proprietary products shipped in the quarter and cost reductions.

Chief Executive Officer Alex Lidow stated: "We see our leading position in power management continuing to drive strong results.

Our focus in content-rich advanced IT applications is paying off as we continue to see widespread acceptance of our proprietary products complemented by an emerging recovery in the PC market.

" With indicators pointing to a sustainable recovery and IR's continued success with its proprietary products, the company has decided to divest or discontinue certain commodity products that are not strategic to its business model, totalling approximately $100 million of annual revenue.

This action is being taken to further focus resources on value-added opportunities and is expected to incrementally raise overall gross margins by 200 basis points within four quarters.

This is in addition to the 100 basis point gain that IR previously announced for each of the December, March and June quarters.

IR expects no new charges associated with these activities and expects these actions to be accretive to company earnings.

Lidow noted: "The outlook for our business continues to strengthen in the December quarter with orders up 30% through the first three weeks compared to the same period in the September quarter.

Backlog visibility is the strongest that we've seen since the year 2000, greater than 80% of guidance revenue.

For the quarter ending December, IR expects revenues to grow about 4 to 7% from the September quarter with gross margins up more than 100 basis points".

• International Rectifier: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• NEW
• Electronicstalk Home Page

Search the Pro-Talk network of sites

Put your news on Electronicstalk  |   Advertise  |   Get the free Electronicstalk newsletter
Electronicstalk Home  |   About Electronicstalk  |   Copyright © 2000-2007 Pro-Talk Ltd, UK