Intersil Corp. said it eked out a modest profit in the second quarter, raised its gross profit margin and boosted its cash position on continued strength in some parts of its business.
However, Intersil is expecting third quarter sales to decline as much as 9% due to pressure on portions of the company's analog business.
The Irvine, Calif., company reported that its net income fell to $1.2 million, or 1 cent per share, in the quarter ended June 30, from $1.8 million, or 2 cents a share, in the comparable year-ago quarter.
It posted pro forma profits of $9 million, excluding amortization charges, versus $7.5 million in the comparable quarter. The company added $27 million to its cash, boosting the ending balance to $633 million.
"We emerge from the second quarter with a strong balance sheet and we continue to generate profit and cash from operations," said Greg Williams, Intersil's president and chief executive, in a statement. "We are encouraged by our market share gains, improvement in gross margins and strong cash flow despite difficult industry conditions."
Intersil posted revenue of $118.3 million, down 7% sequentially and 14% from the $138.2 million it recorded in the year-ago quarter. The company's gross profit margin strengthened, however, gaining 5 percentage points to 50% from 45% in the second quarter of 2000.
"Intersil continues to gain market share in desktop PC power management and revenue from these products is expected to increase with the ramp up of Intel's new Pentium 4 processor," Williams said.