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Intersil

(ISIL)

announced a quarterly dividend and stock-repurchase program Thursday, and confirmed revenue and earnings guidance for the third quarter.

The dividend of 3 cents per share will be paid on Nov. 24, 2003, to stockholders of record on Nov. 3, 2003, while the $100 million buyback of about 2.5% of outstanding shares will be completed over the next year. These moves seem to indicate that the company has been successful in its goal of reducing expenses and shedding noncore assets.

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Thus far, investors agree. The stock is trading up 94% for the year, near its 52-week high.

In July, the company sold its Wireless Local Area Networking (WLAN) products and laid off 8% of its workforce, retaining three cash-generating businesses in what it describes as the "high-performance analog semiconductor" space.

The company expects to report third-quarter earnings of 15 cents per share, in line with expectations of analysts surveyed by Thomson First Call, but down from the 19 cents per share it reported in the year-ago period. Revenue is also expected to be down substantially from $191 million to $130 million on the year. Excluding last year's WLAN revenue, the company says this represents 3% to 5% revenue growth for ongoing businesses.

The company did not confirm guidance for the year, but analysts expect annual earnings to decline from 66 cents per share to 60 cents per share, with revenue down 28% from $706 million to $509 million. Excluding the WLAN business, management says this will represent a 7% revenue increase for the ongoing businesses that generated $476 million last year.

The stock was down 0.6%, or 18 cents, at $27.99 in early trading Thursday.