) has reported fourth-quarter 2012 earnings per share of 2 cents
beating the Zacks Consensus Estimate of a loss of 7 cents per
BROADCOM CORP-A (BRCM): Free Stock Analysis
INTERDIGITL INC (IDCC): Free Stock Analysis
INTERSIL CORP (ISIL): Free Stock Analysis
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The company reported revenues of $137.5 million, down 17.1% year
over year and 9.2% sequentially and within management's guidance
of $138 million, +/- $3 million. The sequential decrease was due
to weak demand across each end market.
Revenue by End Market
Industrial & infrastructure comprised 57% of Intersil's sales
in the last quarter, down 8.2% sequentially and 13.1% from the
year-ago quarter. The fourth quarter marked a continuation of the
softening trends noticed in the third, as a result of broad-based
weakness and seasonal trends.
Intersil's Consumer generated 22% of its sales, down 6.8%
sequentially and 14.2% from the year-ago quarter due to weakness
in the gaming and display markets, partially offset by moderate
strength in handheld due to new design wins.
Intersil's Personal computing generated the remaining 21% of its
sales, down 14.1% sequentially and 28.7% from the year-ago
quarter due to declines in notebook computer units.
Reported gross margin for the quarter was 54.0%, down 270 basis
points (bps) year over year and 10 bps sequentially. Lower
volumes impacted gross margins in the quarter.
Operating expenses (SG&A and R&D) of $71.1 million were
down 7.5% from $76.9 million in the year-ago quarter. The
reported operating margin was (3.0%), down 820 bps from the
year-ago quarter5.2%. Both Selling, general and administrative
(SG&A) and Research and development (R&D) expenses
increased as a percentage of sales.
The quarter's GAAP net loss was $21.8 million or loss per share
of 17 cents, compared with a net income of $24.1 million or
earnings of 19 cents in the comparable quarter last year.
Excluding special items, but including stock-based compensation
expenses, adjusted net income was $2.0 million or earnings per
share of 2 cents compared with $12.9 million or 10 cents a share
in the year-ago quarter.
The company ended the fourth quarter with cash and short-term
investments balance of $163.6 million, down from $410.2 million
in the year-ago quarter. Trade receivables were $54.7 million,
down from $64.9 million in the prior quarter.
Cash flow from operations was $23.2 million, up from $22.6
million in the year-ago quarter. Capex was $6.7 million versus
$0.9 million in the year-ago quarter.
The company repurchased 1.2 million shares at a cost of $8.9
million during the fourth quarter.
For the first quarter of 2013, Intersil expects total revenue in
the range of $131-$138 million, representing a sequential
decrease of 2.5% at the mid-point. Gross margins are expected to
be approximately at 54%, research and development expense of $41
million, sales, general and administrative expenses of $30
million, equity-based compensation expense of $5.3 million, and
amortization of intangibles of $6.5 million.
GAAP (loss)/earnings per share are expected in the range of
$(0.02) to $0.01, while non-GAAP earnings per share is likely to
be $0.02 to $0.05.
Intersil Corp designs and manufactures high-performance analog,
mixed-signal and power components, focused on power management
applications. Though the earnings exceeded the Zacks Consensus
Estimate, the company reported an overall disappointing quarter.
In the quarter, the company performed poorly with both revenue
and gross margins decreasing from the prior as well as the
year-ago quarter. Management gave a weak first-quarter guidance,
which reflects low demand visibility, macro weakness and
pronounced weakness in analog.
However, we believe that the company's new products and design
wins in the quarter will likely drive demand for light sensor
products going forward. We also remain optimistic about
Intersil's long-term prospects and contend that its restructuring
activities will reduce fixed cost base and hence reduce operating
Currently, Intersil has a Zacks Rank #5 (Strong Sell). Investors
should look out for some other stocks with a Zacks Rank of #1, 2
or 3 and positive ESP (Read:
Zacks Earnings ESP: A Better Method
) has a Zacks Rank #2 (Buy) with an ESP of +10.26%.
) has a Zacks Rank #2 (Buy) with an ESP of +350.0%.
) has a Zacks Rank #2 (Buy) with an ESP of +1.61%.