Intersil Holding Corp. (Irvine, CA) announced that revenue and earnings for the first quarter will be lower than previously expected. In addition, Intersil announced that it has received authorization from its board of directors to repurchase up to $50.0 million of the company's stock.
Intersil cites the slowing demand in the semiconductor industry, and the resulting orders softness in its fourth quarter, as the culprit in the reduction of expected earnings. The company believes that first-quarter revenue, excluding sales from the discrete power products business, will be approximately 25 percent lower than the fourth quarter of 2000, instead of a previously projected 11 percent. Based on the revised revenue estimation, the company states that first-quarter adjusted earnings per share will be about $0.05.
“Some of our networking and communications customers are experiencing an inventory correction and, in some cases, a slowdown in end-user demand. However, we are well-positioned in the short term, with a very strong balance sheet and the right target markets for long-term growth," commented Intersil President and CEO Greg Williams.
