SAN JOSE, Calif. -- Seeking to become a $1 billion analog player, Intersil Corp.
has raised its second quarter 2010 financial outlook to account for its recent
acquisition of Techwell Inc.
Revenues are now expected to be in the range of $214-to-$222 million.
Previously, revenues were expected to be in the range of $200-to-$208 million.
Intersil also provided an update on its long-term goal of reaching a $1
billion revenue run rate. Last year's goal of achieving revenues of $250 million
during the fourth quarter of 2011 was accelerated by one year, with that sales
level now expected during the fourth quarter of 2010.
For the year ended Jan. 1, 2010, net revenue was $611.4 million, a 21 percent
decline compared with $769.7 million reported for fiscal 2008.
Net revenues for the first quarter were $189.4 million, a 60 percent increase
from $118.2 million in the first quarter of 2009 and a 7 percent increase from
$177.7 million in the fourth quarter of 2009.
Net income was $27.7 million, or $0.22 per diluted share, compared with $2.4
million, or $0.02 per diluted share in the same quarter last year, and net
income of $17.7 million, or $0.14 per diluted share, in the fourth quarter of
Intersilís first quarter revenues by end market were as follows: high-end
consumer, 19.9 percent of revenues; computing, 32.3 percent of revenues;
industrial, 23.9 percent of revenues; and communications, 23.9 percent of
To help its cause, analog circuit designer and manufacturer Intersil recently
acquired Techwell (San Jose). The purchase is being made through a cash tender
offer at $18.50 per share. Net of Techwell's cash and equivalents, the
transaction values Techwell, which is traded in the Nasdaq exchange, at
approximately $370 million.
Last year, Intersil acquired Rock Semiconductor, a privately-held, fabless
semiconductor company that develops integrated power management ICs. Continuing
its buying spree, Intersil last year acquired Quellan Inc., a privately-held
supplier in the design of high-performance analog signal processing integrated
In 2008, Intersil acquired Kenet Inc., a supplier of low-power data
converters, for an undisclosed price. Also in 2008, Intersil acquired Zilker
Labs Inc., a privately-held, fabless semiconductor company. Zilker Labs'
so-called Digital-DC technology is a mixed-signal power conversion and
"Because of this acquisition (of Techwell), industrial is now Intersil's
largest end market, and is expected to drive stable, profitable growth," said
Dave Bell, Intersilís president and chief executive, in a statement.
Separately, Intersil recently announced that it will donate a wafer
fabrication facility and the land it occupies to the University of Central
The gift consists of 100,494 square feet (9,336 square meters) of office
space, manufacturing and clean room facilities, plus a 5 acre (2 hectare)
property. In addition, Intersil will provide utilities and assist with operating
expenses during the first three years of UCF's ownership, enabling a turnkey
solution for the university.
The entire donation is valued at approximately $13 million.
"It is our hope that the University of Central Florida will use this facility
as a teaching and research center, as well as a high-tech business incubator for
Palm Bay and the surrounding communities," Bell said.
The wafer fabrication facility was built by Harris Semiconductor in 1977 and
has served as part of Intersil's semiconductor wafer fabrication operations
until last year, when operations were consolidated into a single facility.
Known as "Fab 54," the facility has been used to make integrated circuits for
major government, defense and aerospace programs. The facility was also used to
make analog and mixed-signal products for consumer electronics and
Intersil continues to make advanced semiconductor products in its Palm Bay,
Florida facility, which serves as one of the company's major manufacturing
locations. Approximately 550 people are employed in Palm Bay in a variety of
engineering, manufacturing and administrative functions.