News

International Rectifier Announces Fourth-Quarter Financial Results

August 03, 2006 by Jeff Shepard

International Rectifier Corp. reported adjusted earnings of $33.8 million (or $0.47 per share) for the June quarter on revenue of $322.7 million. This compares to adjusted earnings of $28.1 million (or $0.39 per share) for the March quarter on revenue of $297.1 million. For the prior-year June quarter, adjusted earnings were $38.4 million (or $0.54 per share) on revenue of $281.8 million.

Adjusted earnings for the June 2006 quarter excluded $5.2 million of pre-tax severance and restructuring charges, $13.6 million of pretax gain from the sale of an equity investment, and $1.4 million of pretax expenses associated with the proposed convertible debt offering, subsequently withdrawn, and the company's repatriation of special dividends under the American Jobs Creation Act of 2004. Adjusted earnings for the June 2006 quarter also excluded a $6.9 million tax expense from the repatriation of special dividends. For the March 2006 quarter, adjusted earnings excluded $3.3 million in pre-tax severance and restructuring charges. For the prior-year June 2005 quarter, adjusted earnings excluded $12.4 million in pretax severance and restructuring charges and $6.0 million in pre-tax charges from the accelerated vesting of employee stock options.

For the fiscal year just ended, adjusted net income was $117.7 million (or $1.64 per share) on revenue of $1.17 billion, compared to the prior-year adjusted net income of $167.3 million (or $2.30 per share) on revenue of $1.17 billion. Adjusted earnings for fiscal 2006 and 2005 excluded $15.9 million and $34.0 million, respectively, in pre-tax severance and restructuring charges. Also excluded are the gain and expenses, and tax impact from the special dividend repatriation in the fourth quarter in fiscal 2006, and the charge from the accelerated vesting of options in the fourth quarter of fiscal 2005, referenced above. A $3.5 million pre-tax stock option expense is included in the adjusted earnings beginning fiscal 2006 due to the adoption of Statement of Accounting Standards #123R.

CEO Alex Lidow said, "Business conditions remained strong with backlog expanding to record levels, led by 27% order growth over the prior quarter. We were especially pleased with our largest business segment, Computing and Communications, which delivered 17% sequential revenue growth in the June quarter. This reflects the continued success we are having with ramping our fab capacity to support the largest program in the company's history for a major next-generation game station, as well as new computing programs."