Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

International Rectifier Corp. (IRF - Snapshot Report) has reported second-quarter 2013 loss per share of 44 cents, better than the Zacks Consensus Estimate of 47 cents loss per share.

Revenue

The company reported revenues of $223.8 million, down 2.7% year over year due to weak demand across all business segments.

Power management devices revenue decreased 8.3% year over year to $83.3 million; Energy saving products revenue decreased 18.6% to $36.2 million; Enterprise power revenue decreased 24.2% to $28.6 million; Automotive products revenue declined 1.5% to $28.4 million while HiRel revenue dropped 2.8% to $47.1 million.

Intellectual property revenue was $0.25 million in the quarter.

Margins

Reported gross margin for the quarter was 21.9% versus 35.4% in the year-ago quarter. The lower gross margins were due to higher absorption costs and lower utilization rates in the quarter.

Operating expenses (SG&A and R&D) of $77.2 million decreased 6.8% year over year due to solid expense management. However, the reported operating loss decreased significantly from the year-ago quarter. R&D expense increased as a percentage of sales from the year-ago quarter. Moreover, lower gross margins led to the operating margin contraction.

The quarter’s GAAP net loss was $32.7 million or loss per share of 47 cents, compared with a net loss of $6.3 million or loss of 9 cents in the comparable quarter last year. Excluding special items, non-GAAP net loss was $30.3 million or loss per share of 44 cents compared with net loss of $2.7 million or loss of 4 cents a share in the year-ago quarter.

Balance Sheet

The company has a cash and cash equivalents, restricted cash and short-term investments balance of $377.4 million, up from $356.2 million in the prior quarter. Trade receivables were $134.0 million, down from $151.6 million in the prior quarter.

Cash flow from operations was $41.9 million, up from $6.5 million in the prior quarter. Capex was $26.1 million versus $22.0 million in the prior quarter.

Guidance

For the third quarter of 2013, International Rectifier expects total revenue in the range of $220–$235 million, representing a sequential increase of 1.7% at the mid-point. Gross margins are expected in the range of 22% to 23%, research and development expense of $31 million, sales, general and administrative expenses are expected to remain flat at about $45 million, and restructuring and other charges of $2 to $3 million, resulting from the resizing of manufacturing facilities and other cost reduction efforts. Net other expense is expected to be about $1 million and tax amount in the range of $2 million to $3 million, mainly due to foreign tax accruals.

For the third quarter, cash capital expenditure is expected to be about $23 million.

Conclusion

International Rectifier designs, manufactures, and markets analog integrated circuits (ICs) and power components, focused on power management applications. Though the company reported a disappointing quarter, the loss incurred was narrower than expected.

In the quarter, the company performed poorly with both its revenue and gross margins decreasing from the year-ago quarter. However, the company increased its cash ba

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%