beat the Street's first-quarter revenue forecast and issued guidance slightly higher than consensus for the coming quarter.
The Milpitas, Calif.-based company said Wednesday that, excluding items, for the quarter ended March 30, it earned $40.2 million, or 29 cents a share, compared with $41.3 million, or 28 cents a share, a year ago.
That's a penny more than what analysts surveyed by Thomson First Call had forecast.
First-quarter revenue decreased 6% to $167.7 million from year-ago sales of $178.9 million but was still ahead of analysts' expectations of $164.7 million.
Shares of Intersil recently gained $1.29, or 4.6%, after hours to $29.49.
Excluding items, gross margins were 57.4%, vs. gross margins of 57% for the same quarter last year.
Rich Beyer, Intersil's CEO, said that "despite the challenging environment for the industry, we achieved the high end of our expectations for revenue and earnings" while "reducing inventory levels at our distributors. These reduced inventory levels along with our positive book-to-bill give us confidence that Intersil should now return to revenue growth."
Beyer added that, "as expected, we saw a sequential decline in the industrial and communication markets, as inventory of Intersil products was reduced in the channel during the first quarter."
For the coming, or second, quarter, the company, which makes analog chips for products that include DVD players and medical-imaging equipment, expects to earn 30 cents to 31 cents a share, excluding items. It forecasts a revenue rise of 3% to 5%.
On that basis, analysts' EPS forecast is for 30 cents on revenue of $170.6 million.
Additionally, Intersil's board of directors has also authorized a quarterly dividend of a dime a share of common stock. payable on May 18, 2007 to shareholders of record as of the close of business on May 10, 2007.