Intersil Corp. earned $2.7 million, or 2 cents per share on sales of $130.5 million for the third quarter ended October 3, compared to a net loss of $7.8 million, or 6 cents per share on sales of $118.3 million in the year-ago third quarter.
Net earnings reflected the sale of Intersil's Wireless Networking Product Group, completed during the quarter.
As a percentage of third quarter sales, Power Management represented 51%, Elantec represented 26%, and Standard Analog represented 23%. Third-quarter gross margins were 56.5%, driven primarily by strong growth in the Elantec product group and product cost reduction efforts across all groups.
"Intersil reported another strong quarter of growth," said Rich Beyer, president and chief executive, in a statement. "Our continuing product groups grew 22% over the previous year and both our Elantec and Power Management product groups reached record revenue levels this quarter, due to strength in the DVD recordable and computing markets. We expect this momentum to continue and be driven by demand for our new high performance analog products."
Beyer added, "Based on improving demand, we expect these markets to provide continued growth in the fourth quarter. We now expect our revenue to grow between 4 to 5% from the third quarter, to $136 million. With our expectation of improved operating margins, we anticipate increasing our earnings per share to 18 cents for the fourth quarter."