Company Highlights
- Gross margin performance was strong at 59.3% on a GAAP basis and 59.6% on a non-GAAP basis.
- The company again reported solid profitability, with GAAP operating margin of 12.2% and non-GAAP operating margin of 20.3%.
- Cash and cash equivalents increased to $225 million.
- New products introduced during the quarter represent industry firsts for power management in tablets and ultrabooks, wearables and industrial applications.
Quarterly Results
Revenue for the second quarter was slightly lower than expected due to persistent demand weakness in computing and infrastructure end markets. Computing and Consumer (C&C) revenue grew 2.4% sequentially driven by new smartphone wins. Industrial and Infrastructure (I&I) revenue was down 3.1% sequentially. In the I&I business, strength in automotive and military/aerospace was offset by softness in infrastructure power and industrial analog. The breakdown by end market for the quarter was as follows:
|
|
Q2 2015 |
|
Q1 2015 |
|
Q2 2014 | ||||||
|
End Market Revenue |
$M |
|
% |
|
$M |
|
% |
|
$M |
|
% |
|
Industrial & Infrastructure |
87.9 |
|
66% |
|
90.7 |
|
68% |
|
94.8 |
|
64% |
|
Consumer & Computing |
44.5 |
|
34% |
|
43.5 |
|
32% |
|
53.0 |
|
36% |
|
Total Revenue |
$132.4 |
|
|
|
$134.2 |
|
|
|
$147.8 |
|
|
|
| |||||||||||
|
Table 1. Intersil End Market Mix | |||||||||||
GAAP gross margin for the quarter was 59.3%, an increase of 120 basis points from the second quarter of 2014. Total GAAP operating expenses were $62.3 million. R&D expense was $33.1 million and SG&A expense was $25.2 million. GAAP operating income was $16.2 million or 12.2% of revenue. Q2 GAAP net income was $37.7 million and diluted GAAP EPS was $0.28.
The following non-GAAP results exclude amortization of acquisition-related intangibles and stock compensation expense. Non-GAAP gross margin for the quarter was 59.6%. Margin declined slightly sequentially due primarily to a lower mix of I&I products. Non-GAAP operating expenses declined to $52 million as the company efficiently managed expenses. Q2 non-GAAP operating income was $26.9 million resulting in a non-GAAP operating margin of 20.3%. Fully diluted Q2 earnings per share on a non-GAAP basis were $0.16.
For a complete reconciliation of GAAP and non-GAAP results, please see the "Non-GAAP Results" tables included at the end of this release.
