Company Achieves Record Gross Margin
(PRNewswire) — Intersil Corporation (NASDAQ: ISIL), a leading provider of innovative power management and precision analog solutions, today announced financial results for the first quarter of 2015. Revenue of $134.2 million was up 2.3% sequentially. The company reported a GAAP net loss of $68.8 million resulting from a charge related to intellectual property litigation. Non-GAAP earnings per share of $0.17 exceeded expectations due in part to lower than anticipated operating expenses but also as a result of record gross margin during the quarter.Company Highlights
- Gross margin improved again and was up to 59.9% on a GAAP basis and 60.2% on a non-GAAP basis.
- Operating income on a non-GAAP basis increased sequentially, resulting in a non-GAAP operating margin of 21.3%.
- Diluted GAAP loss per share was $0.53 and non-GAAP earnings per share were $0.17.
Quarterly Results
Revenue for the first quarter was better than seasonal as newly-introduced consumer products started ramping and the company's Industrial and Infrastructure (I&I) products experienced strong demand. All I&I product areas increased sequentially to contribute to a nearly 7% increase in revenue. Intersil's Consumer and Computing (C&C) revenue was down sequentially 6% as a result of weak demand in the PC market. Overall design win activity remained strong, particularly for new products. The breakdown by end market for the quarter was as follows:
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Q1 2015 |
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Q4 2014 |
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Q1 2014 | ||||||
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End Market Revenue |
$M |
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% |
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$M |
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% |
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$M |
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% |
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Industrial & Infrastructure |
90.7 |
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68% |
|
85.0 |
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65% |
|
87.4 |
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62% |
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Consumer & Computing |
43.5 |
|
32% |
|
46.1 |
|
35% |
|
52.7 |
|
38% |
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Total Revenue |
$134.2 |
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|
|
$131.1 |
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|
|
$140.1 |
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|
|
|
|
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|
|
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Table 1. Intersil End Market Mix | |||||||||||
For the first quarter, GAAP results include an $81.1 million charge related to an intellectual property lawsuit brought against Intersil in 2008 by Texas Advanced Optical Solutions. Intersil is seeking to overturn the verdict through post-trial motions and appeals to the appropriate U.S. Circuit Court of Appeals, as necessary. GAAP operating expenses therefore totaled $144.1 million, with R&D expense of $32 million and SG&A expense of $25.5 million. GAAP gross margin increased again to 59.9%. For the quarter, the company reported an operating loss of $63.8 million and a net loss of $68.8 million . GAAP diluted loss per share was $0.53 .
