MILPITAS, Calif., Oct. 24, 2016 /PRNewswire/ -- Intersil
Corporation (NASDAQ:ISIL), a leading provider of innovative power
management and precision analog solutions, today announced
financial results for the third quarter ended September 30, 2016. Third quarter revenue was up
4% sequentially and 8% year-over-year to $139.0 million.
Company Highlights
- Consumer and Computing (C&C) revenue increased 6%
sequentially and 9% year-over-year, the fourth consecutive quarter
of year-over-year growth.
- Industrial and Infrastructure (I&I) revenue was up 2%
sequentially and 8% year-over-year.
- Computing and automotive end markets were key growth areas,
with revenue in automotive increasing by 16% year-over-year.
- Gross margin increased sequentially to 60.6% on a GAAP basis
and 60.7% on a non-GAAP basis, achieving the company's non-GAAP
target model of 60%.
- GAAP operating margin increased sequentially and year-over-year
to 16.4%. Non-GAAP operating margin increased by over 450 basis
points to 25.7%, achieving the company's non-GAAP target model of
25%.
- GAAP earnings per share increased sequentially to $0.11. Non-GAAP earnings per share increased by
29% sequentially and 46% year-over-year to $0.22.
- Cash and cash equivalents increased by $27 million to $284
million, the 14th consecutive quarter of sequential
growth.
Business Review
Revenue for the third quarter improved sequentially due to strength
in both the C&C and I&I businesses. Seasonal growth in
C&C, particularly in computing, increased C&C revenue to
its highest point since 2014. The ramp of next generation PC
processors continued to drive demand for the company's computing
power products, and design win traction in mobile platforms
remained strong.
Strength across a number of product areas contributed broadly to
the I&I sequential revenue improvement and year-over-year
growth. I&I power revenue reached its highest level in six
quarters, with power modules achieving record revenue in the
quarter.
Intersil's automotive revenue reached record levels as well. The
company also introduced new products in Q3 that address the major
trends in advanced driver assistance systems (ADAS) and around view
displays.
The revenue breakdown by end market follows:
|
Q3
2016
|
|
Q2
2016
|
|
Q3
2015
|
End Market
Revenue
|
$M
|
|
%
|
|
$M
|
|
%
|
|
$M
|
|
%
|
Industrial &
Infrastructure
|
90.8
|
|
65%
|
|
88.6
|
|
66%
|
|
84.2
|
|
66%
|
Consumer &
Computing
|
48.2
|
|
35%
|
|
45.4
|
|
34%
|
|
44.2
|
|
34%
|
Total
Revenue
|
$139.0
|
|
|
|
$134.0
|
|
|
|
$128.4
|
|
|
Table 1. Intersil End Market Mix
"The third quarter marked a significant milestone for us as we
achieved the gross and operating margin goals we set for the
business. The top line has continued to show progress towards our
goal as well, as new product investments translated into solid
year-over-year revenue growth. This reflects the high quality
foundation of the business we've built over the last three years,"
said Necip Sayiner, president and
CEO of Intersil. "Strong execution has been an important aspect of
our turnaround efforts and we have been able to successfully
intersect a number of key trends with our power management and
precision analog solutions in every one of our target end markets.
With power efficiency becoming a consistent thread through
virtually every application, we believe Intersil solutions can be
central to the evolution of next-generation electronics."
Financial Highlights
Third quarter GAAP gross margin was up to 60.6%, a 120 basis point
sequential increase and a 140 basis point year-over-year increase.
Total third quarter GAAP operating expenses decreased to
$61.4 million and included R&D
expense of $31.3 million and SG&A
expense of $22.8 million. Third
quarter GAAP operating income increased sequentially and
year-over-year to $22.8 million, or
16.4% of revenue. GAAP net income for the third quarter increased
to $15.9 million, resulting in
diluted earnings per share of $0.11.
The following non-GAAP results exclude merger-related expenses,
restructuring and related costs, amortization of purchased
intangibles, equity-based compensation expense, acquisition-related
charges, provision for the TAOS
litigation, gain on recovery of auction rate securities, and
related tax effects.
On a non-GAAP basis, the company reported a further improvement
in gross margin, which increased again sequentially by 110 basis
points to 60.7% even with an increased mix of C&C revenue. This
highlights the improved margins within C&C as new products
increase as a proportion of revenue. Non-GAAP operating expenses
for the third quarter declined to $48.7
million. Non-GAAP R&D expense was $28.5 million and non-GAAP SG&A expense was
$20.2 million. Third quarter non-GAAP
operating margin increased to 25.7% as a result of revenue growth,
strong gross margin and lower operating expenses. This enabled the
company to exceed its non-GAAP operating margin target of 25%.
Non-GAAP net income increased to $31.3
million in Q3, which resulted in a sequential increase in
non-GAAP earnings per share of 29% to $0.22.
"From the beginning of the Intersil transformation, we have
talked about gross margin being a key measure of differentiation.
Clearly we have successfully increased the competitiveness of our
products given the approximately 500 basis point difference in
gross margin we reported compared to the same period in 2013, the
first year of the turnaround," said Rick
Crowley, senior vice president and chief financial officer
for Intersil. "When combined with spending discipline and strong
cash generation, the recent results and early achievement of our
target operating model are a tangible proof point for the strategy
we have patiently pursued."
For a complete reconciliation of GAAP and non-GAAP results,
please see the "Non-GAAP Results" tables included at the end of
this release.
Cash and cash equivalents increased by $27 million at the end of the third quarter to
$284 million, compared to the second
quarter of 2016. Inventories declined in absolute dollars and
channel inventory remained balanced.
Intersil's board of directors authorized payment of a quarterly
dividend of $0.12 per share of common
stock. The payment of this dividend will be made on or about
November 28, 2016 to stockholders of
record as of the close of business on November 15, 2016.
On September 12, 2016 Renesas
Electronics Corporation, a premier supplier of advanced
semiconductor solutions, and Intersil Corporation announced they
had signed a definitive agreement for Renesas to acquire Intersil
for US$22.50 per share in cash,
representing an aggregate equity value of approximately
US$3.2 billion. Closing of the
transaction is expected in the first half of 2017, conditioned on
approval by Intersil stockholders and the relevant governmental
authorities.
Outlook and Third Quarter Earnings Call
Given the pending acquisition by Renesas, Intersil will not be
providing guidance for the fourth quarter and will not be holding a
third quarter results conference call.
About Intersil
Intersil Corporation is a leading provider of innovative power
management and precision analog solutions. The company's products
form the building blocks of increasingly intelligent, mobile and
power hungry electronics, enabling advances in power management to
improve efficiency and extend battery life. With a deep portfolio
of intellectual property and a rich history of design and process
innovation, Intersil is the trusted partner to leading companies in
some of the world's largest markets, including industrial and
infrastructure, mobile computing, automotive and aerospace. For
more information about Intersil, visit our website at
www.intersil.com.
FORWARD-LOOKING STATEMENTS
Some of the statements included in this press release constitute
forward-looking statements, as defined in the Private Securities
Litigation Reform Act of 1995, within the meaning of the federal
securities laws, including Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, as
amended. You should not place undue reliance on these statements.
These forward-looking statements include statements that reflect
the current expectations, estimates, beliefs, assumptions, and
projections of our senior management about future events with
respect to our business and our industry in general.
Statements that include words such as "anticipates," "expects,"
"intends," "plans," "predicts," "believes," "seeks," "estimates,"
"may," "will," "should," "would," "potential," "continue," "goals,"
"targets," and variations of these words (or negatives of these
words) or similar expressions of a future or forward-looking nature
identify forward-looking statements. In addition, any statements
that refer to projections or other characterizations of future
events or circumstances, including any underlying assumptions, are
forward-looking statements.
Forward-looking statements include, but are not limited to,
statements in the quote from our CEO, including the statement
regarding the expected centrality of Intersil products to the
evolution of next-generation electronics, references to the
anticipated benefits of the proposed acquisition by Renesas and the
expected date of closing of the acquisition, as well as our
industry in general. These forward-looking statements are not
guarantees of future performance and are subject to many risks,
uncertainties, and assumptions that are difficult to predict.
Therefore, there are or will be important factors that could cause
our actual results to differ materially and adversely from those
expressed in any forward-looking statement. We believe that the
factors that may affect our business, future operating results, and
financial condition include, but are not limited to, the following:
the inability to complete the merger due to the failure to obtain
stockholder approval for the merger or the failure to satisfy other
conditions to completion of the merger, including the receipt of
all regulatory approvals related to the merger; uncertainties as to
the timing of the consummation of the merger and the ability of
each party to consummate the merger; risks that the proposed merger
disrupts our current plans and operations, including our ability to
retain and hire key personnel; competitive responses to the
proposed merger; unexpected costs, charges, or expenses resulting
from the merger; the outcome of any legal proceedings that could be
instituted against us or our directors related to the merger
agreement; potential adverse reactions or changes to business
relationships resulting from the announcement or completion of the
merger; and legislative, regulatory and economic developments; any
faltering or uncertainty in global economic conditions; the highly
cyclical nature of the semiconductor industry; intense competition
in the semiconductor industry; unsuccessful product development or
failure to obtain market acceptance of our products; downturns in
the end markets we serve; failure to make or deliver products in a
timely manner; unavailability of raw materials, services, supplies,
or manufacturing capacity; delays in production or in implementing
new production techniques, product defects, or unreliability of
products; and adverse results in litigation matters. These risks,
as well as other risks associated with the proposed merger, are
more fully discussed in the preliminary proxy statement that is
included in the Schedule 14A filed with the Securities and Exchange
Commission ("SEC") in connection with the proposed merger on
October 12, 2016 and the other
documents that we have filed or may filed from time-to-time with
the SEC. These forward-looking statements are made only as of
the date of this communication and Intersil undertakes no
obligation to update or revise these forward-looking
statements.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This communication may be deemed to be soliciting material in
respect of the proposed transaction involving Intersil and Renesas.
Intersil has filed with the SEC a preliminary proxy statement in
connection with the proposed transaction with Renesas as well as
other documents regarding the proposed transaction. The definitive
proxy statement will be sent or given to the stockholders of
Intersil and will contain important information about the proposed
transaction and related matters. INTERSIL'S SECURITY HOLDERS ARE
URGED TO READ THE PROXY STATEMENT REGARDING THE PROPOSED
TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY AND IN THEIR
ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The proxy
statement and other relevant materials (when they become
available), and any other documents filed by Intersil with the SEC,
may be obtained free of charge at the SEC's website, at
www.sec.gov. In addition, security holders of Intersil will be able
to obtain free copies of the proxy statement through Intersil's
website, www.intersil.com, or by contacting Intersil by mail at
Attn: Corporate Secretary, 1001 Murphy Ranch Road, Milpitas, California 95035.
PARTICIPANTS IN THE SOLICITATION
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
|
|
Intersil
Corporation
|
Condensed
Consolidated Balance Sheets
|
Unaudited
|
(in
thousands)
|
|
|
|
|
|
|
|
Sep.
30
|
|
Jul.
1
|
|
Oct.
2
|
|
2016
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
284,047
|
|
$
256,864
|
|
$
228,898
|
Trade
receivables, net
|
61,628
|
|
53,578
|
|
51,158
|
Inventories
|
68,277
|
|
69,477
|
|
68,967
|
Prepaid
expenses and other current assets
|
9,332
|
|
6,162
|
|
7,647
|
Income taxes
receivable
|
4,529
|
|
7,573
|
|
1,030
|
Deferred
income tax assets
|
-
|
|
-
|
|
20,977
|
Assets held
for sale
|
4,901
|
|
-
|
|
-
|
Total current
assets
|
432,714
|
|
393,654
|
|
378,677
|
Non-current
assets:
|
|
|
|
|
|
Property,
plant and equipment, net
|
51,572
|
|
57,520
|
|
72,227
|
Purchased
intangibles, net
|
23,443
|
|
26,112
|
|
36,768
|
Goodwill
|
571,770
|
|
571,770
|
|
571,770
|
Deferred
income tax assets
|
59,385
|
|
63,484
|
|
39,916
|
Other
non-current assets
|
31,255
|
|
32,053
|
|
32,289
|
Total non-current
assets
|
737,425
|
|
750,939
|
|
752,970
|
Total
assets
|
$
1,170,139
|
|
$
1,144,593
|
|
$
1,131,647
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Trade
payables
|
21,912
|
|
24,245
|
|
24,011
|
Deferred
income
|
18,077
|
|
15,881
|
|
14,632
|
Income taxes
payable
|
3,301
|
|
5,587
|
|
1,689
|
Provision for
the TAOS litigation
|
78,317
|
|
78,557
|
|
78,014
|
Other accrued
expenses and liabilities
|
61,362
|
|
54,393
|
|
52,844
|
Total current liabilities
|
182,969
|
|
178,663
|
|
171,190
|
Non-current
liabilities:
|
|
|
|
|
|
Income taxes
payable
|
1,653
|
|
1,643
|
|
3,199
|
Other
non-current liabilities
|
10,792
|
|
13,316
|
|
13,947
|
Total non-current liabilities
|
12,445
|
|
14,959
|
|
17,146
|
Total stockholders'
equity
|
974,725
|
|
950,971
|
|
943,311
|
Total liabilities
and stockholders' equity
|
$
1,170,139
|
|
$
1,144,593
|
|
$
1,131,647
|
Intersil
Corporation
|
Condensed
Consolidated Statements of Cash Flows
|
Unaudited
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Sep.
30
|
|
Jul.
1
|
|
Oct.
2
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
Q3 2016
|
|
Q2 2016
|
|
Q3 2015
|
|
Operating
activities:
|
|
|
|
|
|
|
Net income
|
$
15,883
|
|
$
1,389
|
|
$
16,984
|
|
Depreciation
|
2,903
|
|
3,467
|
|
3,635
|
|
Amortization of purchased intangibles
|
2,669
|
|
2,867
|
|
3,777
|
|
Equity-based compensation
|
5,563
|
|
8,122
|
|
5,565
|
|
Asset
impairment charges
|
-
|
|
9,998
|
|
-
|
|
Deferred
income taxes
|
4,099
|
|
(1,635)
|
|
1,412
|
|
Other
|
(1,071)
|
|
(847)
|
|
(771)
|
|
Net
changes in operating assets and liabilities
|
(6,777)
|
|
3,835
|
|
4,193
|
|
Net cash flows provided by operating activities
|
23,269
|
|
27,196
|
|
34,795
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Cash
paid for acquisition, net of cash acquired
|
-
|
|
-
|
|
(15,948)
|
|
Proceeds
from investments
|
865
|
|
42
|
|
460
|
|
Net
capital expenditures
|
(1,784)
|
|
(2,004)
|
|
(1,764)
|
|
Advance
received for planned disposition of 200mm line
|
2,422
|
|
-
|
|
-
|
|
Net cash flows provided
by/ (used in) investing activities
|
1,503
|
|
(1,962)
|
|
(17,252)
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds
from (tax payments for) equity-based awards, net
|
18,446
|
|
(3,168)
|
|
2,587
|
|
Dividends paid
|
(16,338)
|
|
(18,878)
|
|
(15,959)
|
|
Net cash flows provided
by/ (used in) financing activities
|
2,108
|
|
(22,046)
|
|
(13,372)
|
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
303
|
|
70
|
|
(235)
|
|
|
|
|
|
|
|
|
Net change in cash and
cash equivalents
|
27,183
|
|
3,258
|
|
3,936
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents as of the beginning of the period
|
256,864
|
|
253,606
|
|
224,962
|
|
|
|
|
|
|
|
|
Cash and cash equivalents as of the end of the
period
|
$
284,047
|
|
$
256,864
|
|
$
228,898
|
|
Intersil
Corporation
|
Non-GAAP
Results
|
Unaudited
|
(In thousands,
except percentages)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Sep.
30
|
|
Jul.
1
|
|
Oct.
2
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
Q3 2016
|
|
Q2 2016
|
|
Q3 2015
|
|
Non-GAAP gross
profit:
|
|
|
|
|
|
|
GAAP gross
profit
|
$
84,220
|
|
$
79,588
|
|
$
76,058
|
|
Equity-based
compensation COS
|
207
|
|
284
|
|
304
|
|
Non-GAAP gross
profit
|
$
84,427
|
|
$
79,872
|
|
$
76,362
|
|
|
|
|
|
|
|
|
Non-GAAP gross
margin:
|
|
|
|
|
|
|
GAAP gross
margin
|
60.6%
|
|
59.4%
|
|
59.2%
|
|
Excluded items
as a percent of revenue
|
0.1%
|
|
0.2%
|
|
0.3%
|
|
Non-GAAP gross
margin
|
60.7%
|
|
59.6%
|
|
59.5%
|
|
|
|
|
|
|
|
|
Non-GAAP R&D
expenses:
|
|
|
|
|
|
|
GAAP R&D
expenses
|
$
31,315
|
|
$
34,211
|
|
$
31,252
|
|
Equity-based
compensation
|
(2,779)
|
|
(3,834)
|
|
(2,390)
|
|
Non-GAAP R&D
expenses:
|
$
28,536
|
|
$
30,377
|
|
$
28,862
|
|
|
|
|
|
|
|
|
Non-GAAP SG&A
expenses:
|
|
|
|
|
|
|
GAAP SG&A
expenses
|
$
22,782
|
|
$
25,248
|
|
$
23,532
|
|
Equity-based
compensation
|
(2,577)
|
|
(4,004)
|
|
(2,871)
|
|
Non-GAAP SG&A
expenses:
|
$
20,205
|
|
$
21,244
|
|
$
20,661
|
|
|
|
|
|
|
|
|
Non-GAAP operating
expenses:
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
61,419
|
|
$
77,089
|
|
$
58,561
|
|
Restructuring
and related costs
|
(14)
|
|
(13,508)
|
|
-
|
|
Provision for
the TAOS litigation
|
-
|
|
(1,255)
|
|
-
|
|
Equity-based
compensation (excl. COS)
|
(5,356)
|
|
(7,838)
|
|
(5,261)
|
|
Amortization
of purchased intangibles
|
(2,669)
|
|
(2,867)
|
|
(3,777)
|
|
Merger related
expenses
|
(4,639)
|
|
-
|
|
-
|
|
Non-GAAP operating
expenses
|
$
48,741
|
|
$
51,621
|
|
$
49,523
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income:
|
|
|
|
|
|
|
GAAP operating
income
|
$
22,801
|
|
$
2,499
|
|
$
17,497
|
|
Restructuring
and related costs
|
14
|
|
13,508
|
|
-
|
|
Provision for
the TAOS litigation
|
-
|
|
1,255
|
|
-
|
|
Equity-based
compensation
|
5,563
|
|
8,122
|
|
5,565
|
|
Amortization
of purchased intangibles
|
2,669
|
|
2,867
|
|
3,777
|
|
Merger related
expenses
|
4,639
|
|
-
|
|
-
|
|
Non-GAAP operating
income
|
$
35,686
|
|
$
28,251
|
|
$
26,839
|
|
|
|
|
|
|
|
|
Non-GAAP operating
margin:
|
|
|
|
|
|
|
GAAP operating
margin
|
16.4%
|
|
1.9%
|
|
13.6%
|
|
Excluded items
as a percent of revenue
|
9.3%
|
|
19.2%
|
|
7.3%
|
|
Non-GAAP operating
margin
|
25.7%
|
|
21.1%
|
|
20.9%
|
|
Intersil
Corporation
|
Non-GAAP
Results
|
Unaudited
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
Sep.
30
|
|
Jul.
1
|
|
Oct.
2
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
Q3 2016
|
|
Q2 2016
|
|
Q3 2015
|
|
|
|
|
|
|
|
|
Non-GAAP net
income:
|
|
|
|
|
|
|
GAAP net
income
|
$
15,883
|
|
$
1,389
|
|
$
16,984
|
|
Restructuring
and related costs
|
14
|
|
13,508
|
|
-
|
|
Equity-based
compensation
|
5,563
|
|
8,122
|
|
5,565
|
|
Amortization
of purchased intangibles
|
2,669
|
|
2,867
|
|
3,777
|
|
Provision for
the TAOS litigation
|
-
|
|
1,255
|
|
-
|
|
Merger related
expenses
|
4,639
|
|
-
|
|
-
|
|
Gain on
recovery from auction rate securities
|
(135)
|
|
(70)
|
|
(460)
|
|
Tax impact of
non-cash and discrete items
|
2,683
|
|
(3,469)
|
|
(5,049)
|
|
Non-GAAP net
income
|
$
31,316
|
|
$
23,602
|
|
$
20,817
|
|
|
|
|
|
|
|
|
GAAP weighted average
shares - diluted
|
138,760
|
|
137,332
|
|
132,445
|
|
Non-GAAP
adjustment
|
2,583
|
|
3,014
|
|
5,273
|
|
Non-GAAP weighted
average shares - diluted
|
141,343
|
|
140,346
|
|
137,718
|
|
|
|
|
|
|
|
|
Non-GAAP earnings
per diluted share:
|
|
|
|
|
|
|
GAAP earnings per
diluted share
|
$
0.11
|
|
$
0.01
|
|
$
0.13
|
|
Excluded items
per share impact
|
0.11
|
|
0.16
|
|
0.02
|
|
Non-GAAP earnings per
diluted share
|
$
0.22
|
|
$
0.17
|
|
$
0.15
|
|
|
|
|
|
|
|
|
Equity-based
compensation expense by classification:
|
|
|
|
|
|
Cost of revenue
("COS")
|
$
207
|
|
$
284
|
|
$
304
|
|
Research and
development
|
$
2,779
|
|
$
3,834
|
|
$
2,390
|
|
Selling, general and
administrative
|
$
2,577
|
|
$
4,004
|
|
$
2,871
|
|
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SOURCE Intersil Corporation