Intersil Holding Announces Record Fourth-Quarter Earnings

January 24, 2001 by Jeff Shepard

Intersil Holding Corp. (Irvine, CA) reported financial results for the quarter ended December 29, 2000. Compared to the same period in the prior year, orders were up 16 percent and sales grew 37 percent to $216.8 million. Adjusted net income, before amortization and one-time charges, rose to a record $27.9 million or $0.26 per diluted share of common stock.

"The fourth quarter completed our first year as an independent company, during which we made outstanding progress," said Greg Williams, Intersil's president and CEO. "We grew revenue 38 percent to approximately $800.0 million in calendar year 2000, and improved gross margins by over 830 basis points from the end of calendar year 1999. During the fourth quarter, we were particularly pleased with the growth in our PRISM Wireless business, which accounted for more than 24 percent of total Intersil revenues. We also completed the acquisition of broadband wireless access leader SiCOM, adding competencies to enable wireless point-to-point transmissions at speeds up to 155Mbps."

Intersil's gross margins improved 190 basis points over the previous quarter to 48.2 percent, resulting from a richer mix of communications products. Intersil also achieved significant improvement in its balance sheet during the quarter, maintaining a cash position of more than $350.0 million while reducing long-term debt by approximately $50.0 million.

Analog and mixed-signal sales were $112.0 million during the fourth quarter, resulting in growth of 19 percent compared with the same period in 1999. Orders increased three percent over the prior year. Discrete power sales were $52.0 million during the fourth quarter, down slightly from the same quarter in the prior year. Gross margins improved 310 basis points during the quarter to 33 percent, due to a more favorable mix of products. Additionally, Intersil announced that it has reached a definitive agreement to sell its discrete power business to Fairchild Semiconductor International for $338.0 million in cash.