International Rectifier Profit Falls

The third quarter beats by a penny.
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Power management product maker

International Rectifier

(IRF)

, said its third-quarter earnings fell 28% from the year-ago period, hurt by lower gross margin and higher selling and administrative expenses.

The El Segundo, Calif.-based company earned $25.7 million, or 36 cents a share, in the quarter, compared with $35.7 million, or 48 cents a share a year ago. Adjusted for severance and restructuring activities charges, earnings were $28.1 million or 39 cents a share in the most recent quarter. Analysts polled by Thomson First Call were estimating earnings of 38 cents a share.

Revenue for the third quarter rose 5.4% from a year ago to $297.1 million. Analysts polled by Thomson First Call were expecting revenue of $285.53 million in the most recent quarter.

In its future outlook the company expects the fourth quarter Focus Products revenue to be up seven percent to nine percent over the previous quarter, with total company revenue up five percent to eight percent. Gross margin for the fourth quarter is expected to be 39% to 41%.

Gross margin for the third quarter was down 440 basis points to 40.0%.

"Demand soared in the March quarter. Our orders grew 27% over the prior quarter as customers continue to turn to IR's leading power management solutions," the company said. "Demand was strongest in Japan, where our orders were up 110% on the strength of new digital TV and game station programs. We are especially pleased to announce that IR has been selected for the key power management solution in a major next-generation game station platform. This platform presents one of the most difficult power management challenges in the industry."

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