International Rectifier Reduces Expected Q4 2001 Revenues

June 21, 2001 by Jeff Shepard

International Rectifier Corp. (IR, El Segundo, CA) announced that revenues for its fiscal 2001 fourth quarter, ending in June 2001, are expected to be $179.0 to $193.0 million. This is down 30 to 35 percent from record revenues of $276.0 million in the March quarter. Previously, IR had estimated revenues of $237.0 to $257.0 million for the June quarter. Gross margins are expected to decline two to three percentage points in the June quarter from the prior quarter's 41.6-percent record level, but to remain above the 38.5-percent gross margin attained in the June quarter a year ago.

International Rectifier CEO Alex Lidow said, “Looking ahead, we expect revenues for the September quarter to be flat with the June quarter. We believe business conditions will improve later in the year, consistent with the recent forecast of the Semiconductor Industry Association (San Jose, CA). We expect to grow revenues for the 2002 fiscal year 5 to 15 percent, down from the previous estimate of 20- to 25-percent growth. Currently, we believe the low point for gross margins will be around 37 percent in the September quarter, and will expand with the rising revenues anticipated through the balance of the fiscal year. Our cash position of over $800.0 million provides IR with enormous flexibility to strengthen our position as the leader in power management during this global market slowdown.”