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International Rectifier


slipped 4% late Thursday after guiding investors toward a soft third-quarter sales performance.

The news came as the El Segundo, Calif., tech shop posted a mixed second quarter, featuring a stronger-than-expected adjusted profit on a less impressive revenue line.

For its second quarter ended Dec. 31, International Rectifier earned $39.5 million, or 55 cents a share, up from the year-ago $17 million, or 25 cents a share. On a so-called adjusted basis, excluding restructuring costs, earnings rose to 62 cents a share from 36 cents a year earlier, beating the Wall Street analyst consensus.

Revenue, though, fell short of the mark despite rising to $298 million from $252 million a year earlier. Analysts had forecast revenue of $307 million.

The company said it would roll out a series of new products to focus even more closely on more profitable high-end value-added markets. But International Rectifier said third-quarter sales would be flat to down 6% sequentially, which puts them below the flattish Wall Street estimate.

"We are now moving forward with the next phase of our transition," CEO Alex Lidow said. "Over the next six quarters, we will continue to expand our proprietary product portfolio and plan to reach greater than 50 percent gross margins for the company within this period. This will involve a follow-on divestiture or discontinuation of $150 million in annual revenues that no longer add value to our business objectives. Our current visualization does not include any restructuring charges associated with these activities."

The stock fell $1.36 in postclose action to $37.05.