PALM BAY, Fla. -- In its first quarter as an independent company, Intersil Corp. notched sales of $133.9 million, which was 9% more than in the first quarter of fiscal 1999, when it was still Harris Semiconductor. Orders were up 18% over the prior year's first quarter.
Operating income of $7.5 million was up 39% over the year-ago period, before one-time charges associated with purchasing the business from Harris Corp.
"We are extremely pleased with the results of our first quarter as a new company," said Greg Williams, president and CEO. "Orders steadily increased throughout our first quarter, and we experienced particularly strong growth in orders in September. In addition, Intersil's orders were up 7% sequentially during a quarter which is seasonally weak."
Williams cited strong orders demand for products in Intersil's Prism Wireless business -- up 103% from the first quarter of fiscal 1999 -- and its power business, wihch was increased 45% year-over-year.
"We also saw strong orders for our analog and mixed-signal products," Williams added, "including our new Voice-over-Internet Protocol (VoIP) SLICs, power management ICs, high-speed data converters and other high performance analog products."
Intersil also reported improvements in gross margins over the first quarter of 1999. "As Intersil, we have significantly reduced our overhead costs," said Williams. "Operating margins improved as a result of significant cost reductions completed in the past 18 months. Overall, we feel that we have a strong business model and we continue to launch innovative new products that are being widely accepted in our target markets."