MANHASSET, N.Y. Intersil Corp. reported net income of $27.2 million on sales of $144.2 million in its second quarter, compared to $20.1 million on sales of $125.5 million in the year-ago quarter.
The Milpitas, Calif., supplier of analog semiconductors achieved gross margins of 57.3%, which the company said was due to strong growth in general-purpose products. Communications applications accounted for the largest portion of revenue at 31%, followed by industrial, computing, and high-end industrial.
On Thursday, Intersil also completed its acquisition of analog and mixed-signal semiconductor supplier Xicor Inc., a supplier of analog and mixed-signal semiconductors, for cash and stock after overwhelming shareholder approval. Intersil would expand its product line to include digital potentiometers, system management parts, real-time clocks, voltage references, and power sequencing and display products.
According to Rich Beyer, Intersil's president and chief executive, the Xicor acquisition would be accretive beginning the third quarter. He expects Intersil's third quarter revenue to grow to $154 million to $160 million.
Intersil also expects to free additional cash as it continues to restructure operations. Earlier this month, the company eliminated 200 manufacturing and support positions. The company will accelerate engineering and sales staffing in key global locations.