Shares of Intersil (ISIL) jumped 6% in after-hours trading Thursday as the company swung to a profit in the second quarter and guided its third quarter in line with analysts' expectations.
The Milpitas, Calif-based semiconductor manufacturer said it posted net income of $27.2 million, or 19 cents a share, up from a loss of $800,000 million, or 1 cent a share, in the same period last year. (The year-ago quarter contained a loss of $18.3 million from discontinued operations.)
Excluding items in both quarters, earnings rose to $27.9 million, or 20 cents a share, from $20.1 million, or 14 cents a share, in the same period a year ago. On this basis, the company met the analyst estimate of 20 cents a share.
Sales rose 15% to $144.2 million from $125.5 million on the strength of the company's high-end consumer and communications segments.
"We experienced strong demand for our general purpose standard products throughout the second quarter, especially those targeting the communications market," the company said.
Based on the continued demand and the completion of the Xicor merger (which the company expected would finalize Thursday), Intersil expects to earn about 22 cents a share in the third quarter on revenue of $154 million to $160 million. Both estimates are in line with analysts' estimates.
The company also announced it would eliminate about 200 manufacturing and support positions in an effort to consolidate activities and streamline costs. The company expects to realize annual savings of $14 million from the action.
Shares of Intersil fell nearly 6.5% in after-hours trading after closing up 19 cents, or 1.2%, to $16.67.