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EL SEGUNDO, Calif. — International Rectifier Corporation (NYSE:IRF) today announced financial results for the first quarter (ended September 26, 2010) of its fiscal year 2011. Revenue for the first quarter fiscal year 2011 was $280.9 million, a 6.5% increase from $263.8 million in the fourth quarter fiscal year 2010 and a 56.6% increase from $179.4 million in the first quarter fiscal year 2010.
International Rectifier reported net income of $33.5 million, or $0.47 per fully diluted share for the first quarter fiscal year 2011, compared with net income of $29 million, or $0.41 per fully diluted share, in the fourth quarter fiscal year 2010. The first quarter fiscal year 2011 results included a $3.8 million gross tax benefit that increased diluted earnings per share 5 cents. The prior quarter results included an $8.5 million gross tax benefit that increased diluted earnings per share 12 cents. For the first quarter fiscal year 2010, International Rectifier reported a net loss of $16.9 million, or $0.24 per share.
Gross margin was 38.7%, up 260 basis points compared with the fourth quarter fiscal year 2010 and up from 26.4% in the first quarter fiscal year 2010.
Operating income was $31.6 million or 11.3% of revenue compared with $22.2 million or 8.4% of revenue in the fourth quarter fiscal year 2010 and up from an operating loss of $20.3 million or (11.3%) of revenue in the first quarter fiscal year 2010.
President and Chief Executive Officer Oleg Khaykin stated: “In the September quarter, we continued to execute on our strategy with IR’s customer segments revenue up about 6.5% over the prior quarter and up 31.5% since the September 2008 prior cycle peak quarter. Gross margin continued to increase as we benefitted from improved product mix and greater economies of scale. Strength in the industrial and automotive markets was more than enough to offset weakness in the notebook and consumer markets.”
Research and development expenses for the first quarter fiscal year 2011 were $27.6 million, up from $26.6 million in the fourth quarter fiscal year 2010.
Selling, general and administrative expenses for the first quarter fiscal year 2011 were $48.3 million, compared with $45.2 million in the fourth quarter fiscal year 2010. The increase compared with the prior quarter is primarily from employee incentive compensation and commissions associated with higher revenue.
Cash, cash equivalents and marketable investments totaled $575.5 million at the end of the first quarter fiscal year 2011, including restricted cash of $3.4 million.
Cash from operating activities for the first quarter fiscal year 2011 was $37.6 million.
During the first quarter fiscal year 2011, the Company purchased 1,028,318 shares of its common stock for $20 million. The Company had 69,380,959 shares outstanding at the end of the quarter.
Scott, The “war” has probably started already. Several foreign government ministers are already complaining about the US government's action. In one report “G20 showdown likely over US Federal Reserve's quantitative easing” Angela Merkel, the German Chancellor, has indicated she will oppose the decision to devalue the dollar.
Hi
Great post. This knee-jerk reaction certainly will have longer-term global ramifications, stretching far beyond commercial trade.
Of course, something needs to be done to stimulate growth, improve consumer sentiment, and lower unemployment. But, US-centric policies and deliberate currency devaluation won’t help strengthen America’s position in the world community. It’s 2010, and we’re all living in the global economy the US and the Western world enthusiastically created. Let’s update our economic policies to keep pace, in good times and bad.
Llike others on this site, I'll be interetested to hear what comes out of the G20 summit and what kind of pressure other international powerhouses can exert.
Jenn
While a weak dollar does seem to offer an advantage to American industry, it also has many negative effects on the economy. It would be short-sighted to attempted to address what is wrong with the economy with such a simplistic fix.
Ben B is using QE2 as the final option to reduce government debt and boost up exports since Chinese RMB is not expected to devalue soon and our domestic consumption has been idling. Well, over 90% of consumer products are made in China. Dollar devaluation will also increase manufacturing cost because of the exchange rate, plus the job reduction in China due to their lower export will also hurt their spending. This kind of negative feedback effect might not result in more corporate hiring. In terms of trade war, there is no effective means to deal with devaluing dollar and Ben B does know about that.
hwong,
I agreed. As usual, the Fed is not looking at unattended consequences. We drive up the prices in China, and the likely outcome is higher prices around the world. People forget how depressed labor costs in China have kept global prices of goods down.
Bolaji,
Oh yes, it has definitely started! It will be interesting to see how other national governements — and the markets — react to this historic decision in the next few months.
And, as you noted, there appears to be a lot more negative International reaction today.
–Scott Raynovich