International Rectifier Announces Second Quarter Fiscal Year 2010 Results

International Rectifier reported net income of $28.3 million, or $0.39 per fully diluted share for second quarter fiscal year 2010, compared with a net loss of $16.9 million, or $0.24 per share, in the prior quarter, and a net loss of $189.8 million, or $2.61 per share in the second quarter fiscal year 2009. The results for the second quarter fiscal year 2010 included $27.8 million of tax benefits from a release of tax reserves. Gross margin was 29.9%, up from 26.4% in the prior quarter and down from 33.9% in the second quarter fiscal year 2009.



Research and development expenses for the second quarter fiscal year 2010 were $24.2 million, up from $22.8 million in the prior quarter.



Selling, general and administrative expenses for the second quarter fiscal year 2010 were $37.3 million, compared with $43.6 million in the prior quarter. Selling, general and administrative expenses for the second quarter fiscal year 2010 included $3.2 million of cost benefits which are not expected to recur in the March quarter.



Cash, cash equivalents and marketable investments totaled $549.5 million at the end of the second quarter fiscal year 2010, including restricted cash of $3.4 million.



Net cash used in operating activities for the second quarter fiscal year 2010 was $27.4 million. This included a previously reported $45.0 million payment related to a litigation settlement.



During the second quarter fiscal year 2010, the Company purchased 260,683 shares of its common stock under its existing share repurchase program. The Company had 71,072,883 shares outstanding at the end of the quarter.



Our design win activity remains strong across all our market segments and we continue to see robust customer demand in the March quarter. We currently expect third quarter revenue to range from $225 million to $235 million and gross margin to range from 34% to 35%.



Increased focus on energy efficiency continues to drive demand for power management semiconductors. Our revitalized product portfolio has gained share over the past year and has led to increased orders in key end market segments such as servers, appliances, notebooks and high definition televisions, Khaykin concluded.



Segment Table Information

The customer segment tables included with this release for the Company's fiscal quarters ended December 27, 2009, September 27, 2009 and December 28, 2008, respectively, reconcile revenue and gross margin for the Company's ongoing customer segments to the consolidated total amounts of such measures for the Company.