Declining Revenue Hits Intersil Hard

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On April 22, 2009, Intersil(ISIL Quote) reported that its Q1 FY09 earnings slumped 96.4%, hurt by a decline in revenue and declining sales in some market segments. Net income for the quarter plummeted to $2.40 million, or $0.02 per share, from $67.10 million, or $0.53 per share, a year ago. The quarterly earnings beat analysts' estimates, which called for a $0.03 loss.

Revenue plunged 42.0% to $118.20 million from $203.70 million in the prior year's quarter, due to a fall in segmental revenue. High-end consumer sales that accounted for around 21.2% of revenue, decreased 60.0% year-over-year. Computing, which contributed 31.1% of sales, fell 43.0% year-over-year. The industrial segment dipped 42.0% during Q1 FY09. Sales from the communications segment decreased by 24.0%. Further, cost of revenue slipped 43.7% to $53.00 million from $94.10 million. Research and development costs dropped 6.6% to $32.80 million, while selling, general, and administrative costs declined 6.2% year-over-year to $25.80 million. ...