Intersil Corporation Reports Strong Quarterly Results

Intersil, Renesas and their respective directors, executive officers, and other members of management, and certain of their respective employees, may be deemed to be participants in the solicitation of proxies in connection with the proposed merger. Information about Intersil's directors and executive officers is included in Intersil's Annual Report on Form 10-K for the fiscal year ended January 1, 2016 filed with the SEC on February 12, 2016, and the proxy statement filed with the SEC on March 4, 2016 for Intersil's annual meeting of stockholders held on April 21, 2016. Additional information regarding these persons and their interests in the merger has been included in Intersil's preliminary proxy statement filed with the SEC on October 12, 2016 and will be included in the definitive proxy statement relating to the proposed merger when it is filed with the SEC. These documents, when available, can be obtained free of charge from the sources indicated above.

Non-GAAP Reporting
To supplement its consolidated financial results presented in accordance with GAAP, Intersil uses non-GAAP financial measures, which are adjusted from the most directly comparable GAAP financial measures to exclude certain items, as described in detail below. Management believes that these non-GAAP financial measures reflect an additional and useful way of viewing aspects of the company's operations that, when viewed in conjunction with Intersil's GAAP results, provide a more comprehensive understanding of the various factors and trends affecting the company's business and operations. It should also be noted that Intersil's non-GAAP information may be different from the non-GAAP information provided by other companies. Non-GAAP financial measures used by Intersil include:

  • Gross profit;
  • Operating expenses;
  • Provision (benefit) for income taxes;
  • Operating income (loss);
  • Net income (loss);
  • Diluted earnings (loss) per share; and
  • Weighted average shares outstanding – diluted.

The company presents non-GAAP financial measures because the investor community uses non-GAAP results in its analysis and comparison of historical results and projections of the company's future operating results. These non-GAAP results exclude acquisition-related charges, restructuring and related costs, equity-based compensation expense, and certain other expenses and benefits. Management uses these non-GAAP measures to manage and assess the profitability of the business. These non-GAAP results are also consistent with the way management internally analyzes Intersil's financial results.

There are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP financial measures. The non-GAAP financial measures supplement, and should be viewed in conjunction with, GAAP financial measures. Investors should review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in this press release.

As presented in the "Non-GAAP Results" tables in this press release, each of the non-GAAP financial measures excludes one or more of the following items:

Acquisition-related charges. Acquisition-related charges are not factored into management's evaluation of potential acquisitions or Intersil's performance after completion of acquisitions, because they are not related to the company's core operating performance. Adjustments of these items provide investors with a basis to compare Intersil's performance to other companies without the variability caused by purchase accounting. Acquisition-related charges primarily include:

  • Amortization of purchased intangibles, which include purchased intangibles such as purchased technology, patents, customer relationships, trademarks, backlog and non-compete agreements.
  • One-time charges associated with completing an acquisition including contract termination costs.

Other adjustments. These items are excluded from non-GAAP financial measures because they are not related to the core operating activities and on-going future operating performance of Intersil. Excluding these items allows investors to better compare Intersil's period-over-period performance without such expense, which Intersil believes may be useful to the investor community. Other adjustments primarily include:

  • Equity-based compensation expense.
  • Legal judgments, awards, or governmental fines or penalties.
  • Income from IP agreements.
  • Restructuring and related costs, including asset impairment charges.
  • Write-offs (recoveries) related to Auction Rate Securities.
  • Merger-related expenses
  • Tax effects of non-GAAP adjustments.
  • Diluted weighted average shares non-GAAP adjustment - for purposes of calculating non-GAAP diluted earnings per share, the GAAP diluted weighted average shares outstanding is adjusted to exclude the benefits of equity-based compensation expense attributable to future services not yet recognized in the financial statements that are treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

Comparability. The above criteria has been consistently applied when calculating the non-GAAP financial measures for all periods presented in this press release and accompanying tables.

    

Intersil Corporation

Condensed Consolidated Statements of Income

Unaudited

(In thousands, except percentages and per share amounts)









Quarter Ended



Sep. 30


Jul. 1


Oct. 2



2016


2016


2015



Q3 2016


Q2 2016


Q3 2015









Revenue

$         139,045


$    134,009


$    128,396


Cost of revenue

54,825


54,421


52,338


Gross profit

84,220


79,588


76,058


Gross margin %

60.6%


59.4%


59.2%


Expenses:







Research and development 

31,315


34,211


31,252


Selling, general and administrative 

22,782


25,248


23,532


Amortization of purchased intangibles

2,669


2,867


3,777


Restructuring and related costs

14


13,508


-


Provision for the TAOS litigation

-


1,255


-


Merger-related expenses

4,639


-


-


Total expenses

61,419


77,089


58,561


Operating income

22,801


2,499


17,497


Other income (expense) , net

114


(326)


(215)


Income before income taxes

22,915


2,173


17,282


Income tax expense (benefit)

7,032


784


298


Net income 

$           15,883


$        1,389


$      16,984









Earnings per share: 







Basic

$               0.12


$          0.01


$          0.13


Diluted

$               0.11


$          0.01


$          0.13









Weighted average shares outstanding:







Basic

135,908


135,086


132,133


Diluted

138,760


137,332


132,445



« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8  Next Page »



Review Article Be the first to review this article
Aldec

 Advanced Asembly

Featured Video
Latest Blog Posts
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
What’s on Tap from the ESD Alliance? Plenty! Read On …
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Automating IP and SoC Development
Jobs
Senior Staff Field Application Engineer for Global Foundaries at Santa Clara, California
SoC Physical Design Engineer for Qualcomm at Austin, Texas
Electronics Engineer for Lockheed Martin at Sunnyvale, California
ASIC SoC Verification Engineer for Ericsson at Austin, Texas
Pre-silicon Design Verification Engineer for Intel at Santa Clara, California
Test and Measurement System Architect for Xilinx at San Jose, California
Upcoming Events
Virtual ASMC 2021 at United States - May 10 - 12, 2021
DVCon China 2021 at Shanghai China - May 26, 2021
CadenceLIVE Americas 2021 at United States - Jun 8 - 9, 2021
DesignCon 2021 at San Jose McEnery Convention Center San Jose, CA San Jose CA - Aug 16 - 18, 2021
True Circuits PHY



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise