This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Intersil's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: ISIL

One year ago, we introduced our top ten growth drivers for the first time. Since that time, they’ve provided clarity for our investors about the areas where we’re confident we can win in an increasingly competitive semiconductor market. But it has also been a catalyst for focusing resources within Intersil.

At our Analyst Day on May 8, we updated our top ten growth drivers, and provided a rough estimate for the growth trajectories in each area. We reaffirmed our conviction that these ten growth drivers will create an incremental $700 million in sales by 2016, five years from when that goal was first introduced last July.

At this point, nearly all of our development resources are focused on our top ten growth drivers. These are the carefully chosen product areas where Intersil has the technology, the talent and the customer relationships to much larger rival. During our Analyst Day, we also indicated that we were about to make significant operating expense reductions. We explained that these OpEx reductions amounting to $40 million per year in savings would allow Intersil to reach a non-GAAP operating profit margin of 24% at a $200 million per quarter revenue rate. In light of the soft economic conditions, we believe this reduced revenue goal is more achievable during the coming year.

Nearly all of these OpEx reductions were implemented during the second quarter, so the third quarter's profitability will be significantly improved. We’re now a lean, mean and focused product development machine, and expecting several of our top 10 growth drivers to begin generating significant growth in 2013.

I’d now like to talk briefly about the business conditions in the second quarter. Recovery from the latest semiconductor cycle began in the first part of the second quarter, however bookings weakened again in June, and as a result we closed the quarter with a book-to-bill ratio slightly less than one. Worries over weakness in the global economy, particularly in Europe had weight on all our end markets.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,636.84 -35.76 -0.20%
S&P 500 2,051.10 -0.72 -0.04%
NASDAQ 4,757.9760 +0.0970 0.00%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs