A Short Circuit in Intersil's Earnings

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On Jan. 28, 2009, Intersil (ISIL Quote) reported that its Q4 FY08 earnings swung to loss from a profit in the prior year's quarter, hurt by a goodwill impairment charge and decline in sales. Net loss for Q4 FY08 was $1.18 billion or $9.68 per share compared with a profit of $40.30 million or $0.31 per share a year ago. Non-GAAP earnings were $13.00 million or $0.11 per share, which beat the most recent consensus estimate of $0.09 per share.

During Q4 FY08, ISIL's revenue plunged 38.3% to $131.10 million from $212.60 million in the prior year's quarter. Segment-wise, High-End Consumer accounted for 25.2%, Computing contributed 22.4%, Industrial added 26.9%, and Communications added 25.5% to total revenue. Research and development costs marginally reduced to $35.40 million from $35.50 million, while selling, general and administrative costs declined 18.6% to $28.50 million. In addition, restructuring charges stood at $3.20 million. ...