Intersil Posts Modest Gains

Strong seasonal demand helps the analog chipmaker beat Wall Street estimates.
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Intersil (ISIL) reported a modest uptick in third-quarter sales but forecast sales for the current quarter that beat Wall Street expectations.

The Milpitas, Calif., chipmaker said revenue in the three months ended Sept. 28 totaled $198.3 million compared with $192.9 million at this time last year.

The top line was slightly ahead of the $195.6 million expected by analysts and of the company's own expectations, which it raised last month.

Oddly, Intersil's net income of $37.7 million, or 27 cents a share, was a penny short of its revised estimate in September. At this time last year, Intersil had net income of $37.7 million, or 27 cents a share.

Excluding the effects of stock option compensation and certain other expenses, Intersil said it earned 36 cents a share, ahead of the 35 cents expected by analysts polled by Thomson Financial.

Shares of Intersil fell 2.6%, or 90 cents, to $33.20 in extended trading Wednesday.

Intersil makes analog chips for products including PCs, flat screen televisions and high-end medical imaging equipment.

The company said it benefited from strong seasonal demand and record orders across multiple areas of its business, particularly for products designed for computing and consumer markets.

"We are well positioned to capitalize on our design win momentum and aggressive new product release schedule for a strong finish to 2007," CEO Rich Beyer said in a statement.

The company projected that revenue in the current quarter will increase 5% to 7% sequentially, suggesting a range of $208.3 million to $212.2 million. Analysts were looking for revenue of $206.5 million.

Intersil said its adjusted EPS will range between 38 cents and 39 cents, vs. the 37 cents expected by analysts.