International Rectifier Corp. reported earnings of $7.45 million, or 11 cents per share, on sales of $214.4 million in its third 2003 fiscal quarter ended March as the company reported a 28% rise in orders year-over-year. Earnings were reduced by $6.4 million in charges related to asset impairment, restructuring, and severance announced in December.
The El Segundo, Calif., semiconductor supplier earned $12.2 million, or 19 cents per share, on sales of $178.6 million in the year-ago quarter.
The revenue gains resulted from higher sales of proprietary products such as analog ICs, power systems, and advanced circuit devices, with improving shipments in the information technology, automotive, and industrial sectors. Gross margins rose from 32.5 to 33.5% sequentially.
Orders rose on the strength of the information and defense technology markets, according to the company.
Though shipments to distributors declined 9% sequentially in the March quarter, International Rectifier reported that distributor shipments of the company's products to their end customers rose 13% sequentially, indicating some degree of inventory burnoff.
"Distributor inventories are at historic lows," said Alex Lidow, chief executive of International Rectifier, during a conference call with analysts. "We expect to see replenishment in the distributor channel, particularly for newer products. "
Although bookings continue to improve, Lidow warned that market visibility remains uncertain.
"IT corporate spending remains in doubt, and consumer markets such as video games remain seasonally weak, " Lidow said.
For the fourth 2003 fiscal quarter ending June, International Rectifier expects revenue to grow 4 to 8%, with gross margins rising slightly.