International Rectifier Corporation has a market cap of $1.31 billion; its shares were traded at around $18.48 with a P/E ratio of 31.6 and P/S ratio of 1.1.
Highlight of Business Operations:We report within our IP segment revenues from the sale and/or licensing of our technologies and manufacturing process know-how, as well as settlements of claims brought against third parties. In the fiscal years 2012, 2011 and 2010, we received $1.6 million, $7.4 million and $9.4 million of royalty revenues, respectively. IP segment revenues are dependent on our licensed MOSFET, HVIC and package technology patents, the continued enforceability and validity of those patents, the ability of our competitors to design around our technology or develop competing technologies, and general market conditions. The continuation of such revenues is subject to a number of risks (see Part I, Item 1A, "Risk Factors-Our ongoing protection and reliance on our IP assets expose us to risks"). We continue to derive royalty revenues from HVIC and package technology patents, and from time to time, we enter into opportunistic licensing arrangements that we believe are consistent with our business strategy.
Our revenues were $1,050.6 million and $1,176.6 million for the fiscal years ended June 24, 2012 and June 26, 2011, respectively. We experienced strong demand for our products during fiscal year 2011; however during the fiscal year 2012 we experienced a sharp decline in demand. Our lower revenues during fiscal year 2012 were due to lower demand (i) in China, particularly in the appliance end market, (ii) in Europe from our industrial product component customers, and (iii) from our consumer product component customers worldwide. We currently expect revenues for first quarter of fiscal year 2013 to be between $235 million and $250 million.
Selling, general and administrative expense was $200.4 million (19.1 percent of revenues) and $193.7 million (16.5 percent of revenues) for the fiscal years ended June 24, 2012 and June 26, 2011, respectively. The year-over-year increase of $6.7 million in selling, general and administrative expense was primarily due to costs associated with the implementation of our ERP system, increased professional services costs, and an increase in headcount related expenses, partially offset by lower incentive bonus and commissions. Depreciation associated with the ERP system is approximately $2.0 million per quarter beginning with the second quarter of fiscal year 2012 and is charged to SG&A expense. We expect our SG&A expenses to decrease to less than $50 million per quarter in the fiscal year 2013 as we expect to gain operational efficiencies from the ERP system which will allow us to operate our business at a lower relative SG&A cost level.
In addition to the amounts in the table above, $1.0 million of workforce reduction expense related to retention bonuses was recorded in cost of sales during the fiscal years 2010 related to the restructuring initiatives. In fiscal year 2011, as a result of our decision to suspend for the foreseeable future our El Segundo Fabrication Facility Closure Initiative (as described below), we recorded a net credit to cost of sales for approximately $1.0 million to accrued workforce reduction costs related to retention bonuses. We also incurred costs to relocate and install equipment of $0.2 million, and $2.1 million for the fiscal years ended June 26, 2011 and June 27, 2010, respectively. These costs are not considered restructuring costs and were recorded in costs of sales.
We evaluate available-for-sale securities for other-than-temporary impairment. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which the market value has been less than cost; the financial condition and near-term prospects of the issuer of the securities; our intent to sell, or whether it is more likely than not that we will be required to sell, the investment before anticipated recovery in fair value. If, based upon the analysis, it is determined that the impairment is other-than-temporary, the security is written down to fair value, and a loss is recognized through earnings. Other-than-temporary impairments relating to certain available-for-sale securities for the fiscal years ended June 24, 2012, June 26, 2011, and June 27, 2010 were $2.9 million, $1.4 million, and $3.4 million, respectively, and were included in other expense. As of June 24, 2012, we had immaterial unrealized losses related to debt instruments classified as available-for-sale, and no unrealized losses on equity investments.
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