Intersil Corp. has a market cap of $1.72 billion; its shares were traded at around $13.99 with a P/E ratio of 21.5 and P/S ratio of 2.8. The dividend yield of Intersil Corp. stocks is 3.4%. Intersil Corp. had an annual average earning growth of 10.6% over the past 10 years.ISIL is in the portfolios of PRIMECAP Management, PRIMECAP Management, Westport Asset Management, Bruce Kovner of Caxton Associates.
This is the annual revenues and earnings per share of ISIL over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ISIL.
Highlight of Business Operations:The Form 10-Q incorrectly stated that we had a six-month backlog as of April 2, 2010 of $165.1 million compared to a six-month backlog of $157.4 million as of January 1, 2010 and of $126.9 million as of April 3, 2009. The correct six-month backlog as of April 2, 2010 was $196.8 million. Although not always the case, backlog can be a leading indicator of performance for approximately the next two quarters.
Cost of revenue consists primarily of purchased materials and services, labor and overhead associated with product manufacturing. During the quarter ended April 2, 2010, gross profit increased $41.8 million or 64.1% to $106.9 million from $65.1 million during the quarter ended April 3, 2009. As a percentage of sales, gross margin was 56.4% during the quarter ended April 2, 2010 compared to 55.1% during the quarter ended April 3, 2009. The increase in gross margin was primarily due to increased sales and higher utilization of resources, as well as fluctuations caused by product sales mix changes at the product family level. Generally, our computing and high-end consumer products have lower gross margins than our industrial and communications products.
Amortization of purchased intangible assets decreased $0.6 million or 17.8% to $2.9 million in the quarter ended April 2, 2010 from $3.5 million in the quarter ended April 3, 2009. The decrease resulted primarily from certain balances that became fully amortized, offset by the acquisitions of Quellan in the third quarter of 2009 and Rock in the first quarter of 2010. We expect amortization of current definite-lived intangible asset balances to remain essentially flat in the second quarter, declining gradually in 2010 as certain balances become fully amortized.
In fiscal year 2008, we implemented plans to consolidate our internal foundries, reduce the related workforce and reduce our world-wide workforce by approximately 9%, resulting in an estimated combined annual cost savings between $12 million and $14 million. We recorded no restructuring related charges in the quarter ended April 2, 2010 compared to $1.6 million in the quarter ended April 3, 2009 for employee severance, facility consolidation and other costs associated with our restructuring plans. All current restructuring plans have been completed and we have no remaining restructuring liability.
On April 21, 2010, we announced our outlook for the second quarter of 2010. With a positive book-to-bill in the first quarter and increasing backlog, we expected to see sequential growth in the second quarter. At that time, we expected revenue to increase to $200 million to $208 million. We expected GAAP earnings per diluted share of approximately $0.23 to $0.26. The full announcement can be referenced in the press release that is an exhibit to a Current Report on Form 8-K furnished on April 21, 2010.
We have $62.4 million in long-term investments, primarily auction rate securities. These securities are composed of approximately $34.6 million of insurance related securities, $9.0 million of corporate credit securities, and $18.8 million of student loan based securities. We continue to accrue and receive interest on the securities based on a contractual rate. The weighted rate is currently approximately 181 basis points above one month LIBOR.
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