International Rectifier Corp.
) has reported second-quarter 2013 loss per share of 44 cents,
better than the Zacks Consensus Estimate of 47 cents loss per
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The company reported revenues of $223.8 million, down 2.7% year
over year due to weak demand across all business segments.
Power management devices revenue decreased 8.3% year over year to
$83.3 million; Energy saving products revenue decreased 18.6% to
$36.2 million; Enterprise power revenue decreased 24.2% to $28.6
million; Automotive products revenue declined 1.5% to $28.4
million while HiRel revenue dropped 2.8% to $47.1 million.
Intellectual property revenue was $0.25 million in the quarter.
Reported gross margin for the quarter was 21.9% versus 35.4% in
the year-ago quarter. The lower gross margins were due to higher
absorption costs and lower utilization rates in the quarter.
Operating expenses (SG&A and R&D) of $77.2 million
decreased 6.8% year over year due to solid expense management.
However, the reported operating loss decreased significantly from
the year-ago quarter. R&D expense increased as a percentage
of sales from the year-ago quarter. Moreover, lower gross margins
led to the operating margin contraction.
The quarter's GAAP net loss was $32.7 million or loss per share
of 47 cents, compared with a net loss of $6.3 million or loss of
9 cents in the comparable quarter last year. Excluding special
items, non-GAAP net loss was $30.3 million or loss per share of
44 cents compared with net loss of $2.7 million or loss of 4
cents a share in the year-ago quarter.
The company has a cash and cash equivalents, restricted cash and
short-term investments balance of $377.4 million, up from $356.2
million in the prior quarter. Trade receivables were $134.0
million, down from $151.6 million in the prior quarter.
Cash flow from operations was $41.9 million, up from $6.5 million
in the prior quarter. Capex was $26.1 million versus $22.0
million in the prior quarter.
For the third quarter of 2013, International Rectifier expects
total revenue in the range of $220-$235 million, representing a
sequential increase of 1.7% at the mid-point. Gross margins are
expected in the range of 22% to 23%, research and development
expense of $31 million, sales, general and administrative
expenses are expected to remain flat at about $45 million, and
restructuring and other charges of $2 to $3 million, resulting
from the resizing of manufacturing facilities and other cost
reduction efforts. Net other expense is expected to be about $1
million and tax amount in the range of $2 million to $3 million,
mainly due to foreign tax accruals.
For the third quarter, cash capital expenditure is expected to be
about $23 million.
International Rectifier designs, manufactures, and markets analog
integrated circuits (ICs) and power components, focused on power
management applications. Though the company reported a
disappointing quarter, the loss incurred was narrower than
In the quarter, the company performed poorly with both its
revenue and gross margins decreasing from the year-ago quarter.
However, the company increased its cash ba