Intersil Corporation ( ISIL) Q2 2011 Earnings Call July 27, 2011, 4:45 p.m. ET Executives Brendan Lahiff - Senior Investor Relations Manager David Bell - President and CEO Jonathan Kennedy - Senior Vice President and CFO Analysts Ross Seymore - Deutsche Bank Craig Ellis - Caris & Company [Gabriella Jorgensen on behalf of James Snyder] Joanne Feeney – Longbow Research [Vincitis] Navarantne – JP Morgan Evan Wang – Stifel Nicolaus & Co. Patrick Wang – Evercore Partners John Pitzer – Credit Suisse Steve Smigie – Raymond James Sumit Dhanada – Citadel Securities [Ucha Ubi – UBS] Chris Caso – Susquehanna Financial Group Presentation Operator Ladies and gentlemen, welcome to the Intersil Corporation second quarter 2011 Earnings conference call. I will be your coordinator for today.
In addition, this call is being webcast live over the Internet and may be accessed via the investor relations section of our website. A telephonic replay of the conference call and webcast will be available for approximately two weeks through August 10 th. Questions during the call may also be submitted online via the webcast but we’ll be answer by e-mail after the call.Please note that come comments made during this conference call may contain forward-looking statements. I’d like to remind you that while these statements reflect our current best judgment, they are subject to risks and uncertainties that could cause our actual results to vary. These risk factors are discussed in detail in our filings with the Securities and Exchange Commission. In addition, during this call, we may refer to financial measures that are not prepared according to Generally Accepted Accounting Principles. We sometimes use these measures because we believe they provide useful information about the performance of our business and should be considered by investors in conjunction with GAAP measures that are reported. Our agenda for the call today is as follows: Dave Bell will discuss key highlights from the quarter and Jonathan Kennedy will review from a financial perspective, and Dave will follow with the addition commentary on each of our four key markets as well as our forward-looking guidance. A Q&A session will follow. I will now turn the call over to Dave Bell, President and CEO of Intersil. David Bell Thanks, Brendan. Good afternoon, and thank you for joining us today for Intersil’s second quarter 2011 earnings conference call. The second quarter was challenging as the entire industry reacted to the impact of the March 11 earthquake in Japan. At the same time, we faced a worldwide economy that weakened as the quarter progressed. Despite those challenges, Intersil grew revenues by 5%, reporting revenues of $209.1 million for the second quarter.
We were also pleased to increase gross margin by 40 basis points to 58.2%, remaining at our desired operating model.
We are now leveraging our advance power conversion architectures developed for the PC market and producing parts aimed at the performance-intensive infrastructure market. Switches, routers, base stations, servers, and network attached storage, all have similar power conversion requirements that can be addressed by our growing portfolio of IC and module-level of products.Cloud computing and virtualization will continue to drive strong growth in the communications market. During the second quarter, we completed our transition to add [inaudible] as our single global distributor. This carefully orchestrated process went very smoothly and is already paying substantial dividends. For instance, in North America, the total new distribution opportunity dollars recorded in Q2, more than doubled from those in Q4. The additional resources and forces at focus at AppNet will result in significant growth in the coming quarters as those opportunities turn into revenue dollars. We’re very pleased with our performance during the second quarter having generated over $45 million in free cash flow. We are committed to returning shareholder value and as a result, our Board of Directors has authorized a quarterly dividend of $0.12 per share of common stock. Read the rest of this transcript for free on seekingalpha.com