Zeev's Turnips Patch-No Politics (ZEEV)

[John126]

Zeev- IRF qt

Looked pretty good and talked up defense spending- any thoughts?

http://biz.yahoo.com/bw/020725/250355_1.html

EL SEGUNDO, Calif.--(BUSINESS WIRE)--July 25, 2002--International Rectifier Corporation (NYSE:IRF - News) today reported strong top-line growth, with June-quarter revenues up 13 percent compared to the March quarter. The company reported net income of $16.1 million (or $0.25 per share) on revenues of $201.0 million for the quarter ended June, compared to net income of $12.2 million (or $0.19 per share) on revenues of $178.6 million in the March quarter. During the quarter, IR completed the acquisition of TechnoFusion GmbH, a leading maker of power generation systems for the automotive industry, which added about $5 million to the company's revenues in the quarter but did not contribute to earnings.

The company also reported year-over-year growth, with revenues up nine percent compared to the quarter ended June 2001. In the year-earlier quarter, IR reported revenues of $185.1 million with net income of $15.1 million ($0.23 per share) before a pre-tax impairment and restructuring charge of $86.4 million. Including the charge, the company reported a net loss of $48.8 million (or $0.78 per share) in the earlier period.

June-quarter gross margins were 36.7 percent, compared to 35.1 percent in the preceding quarter. Excluding royalties, gross margins expanded sequentially by about 240 basis points, reflecting continued growth in proprietary products and cost efficiencies. In the year-ago quarter, gross margins were 38.8 percent before and 18.1 percent after the charge.

June-quarter orders grew 13 percent quarter-to-quarter including TechnoFusion bookings, which contributed about five percentage points of the increase. OEM orders grew sequentially by 17 percent, while orders from distributors grew by 7 percent. Orders for proprietary products (analog ICs, advanced-circuit devices, and power systems) represented more than half of total bookings.

Chief Executive Officer Alex Lidow noted, "Leadership in power management technology and execution of a tightly-focused business model have positioned IR to grow with greater inherent profitability. Revenues from proprietary products were up 15 percent over the prior quarter, and we continue to capture more value at the system level and extend our competitive lead. We believe that our technology and design wins position IR to capitalize on the best opportunities in the field of power management."

Revenues from proprietary products comprised more than half of June-quarter revenues, compared to 43 percent in the prior-year quarter. Shipments to "smart" home appliances, space and defense programs, and automotive electronics led revenue growth in the quarter. Distributors' sell-through of IR products to end customers rose by eight percent, while their IR inventories remained relatively flat. Prices declined by less than two percent sequentially. Royalties contributed $11.0 million to revenues, compared to $11.5 million in the March quarter and $13.5 million in the year-earlier quarter.