Intersil

(ISIL)

met first-quarter expectations on sales and earnings, while projecting second-quarter revenues above expectations. Earnings for the quarter now underway should be about in line with Wall Street projections.

The chipmaker posted first-quarter revenues of $164.4 million, more than $2 million above Street expectations, representing a 23% increase from the prior year.

Net income according to generally accepted accounting principles declined to 10 cents a share from 13 cents for the same period last year.

Pro forma EPS of 13 cents was in line with Street projections.

CEO Rich Beyer said the company was pleased with its overall performance in what tends to be a seasonally weak quarter for the industry. The company's power management and Elantec product groups saw sequential growth, while sales of wireless networking chips dropped 9% from the prior quarter because of seasonal softness and average selling price declines in 802.11b chips.

Citing "increasing strength in orders" in the first quarter as well as new-product launches, Beyer forecast revenue growth of 5% to 7% in the second quarter to between $172 to $176 million.

"We expect earnings to grow faster than revenues, due to continued improvement in gross margins and continued leveraging of our operating expenses," he said, predicting EPS of 15 cents to 16 cents in the quarter now underway.

Wall Street analysts had been modeling for second-quarter revenues of $171 million on earnings of 16 cents.