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Intersil Corp. Reports Operating Results (10-K)

February 24, 2012 | About:

Intersil Corp. (NASDAQ:ISIL) filed Annual Report for the period ended 2011-12-30.

Intersil Corp has a market cap of $1.47 billion; its shares were traded at around $11.27 with a P/E ratio of 21.2 and P/S ratio of 1.9. The dividend yield of Intersil Corp stocks is 4.1%. Intersil Corp had an annual average earning growth of 6.9% over the past 10 years.

Highlight of Business Operations:

Our SG&A expenses increased by 2% or $2.6 million to $140.0 million for 2011 compared to $137.5 million for 2010. The increase in 2011 was primarily due to higher labor costs and supplies from additional employees gained in acquisitions during 2010 and increased sales and incentives during the first quarter of 2011.

Our SG&A expenses increased by 14% or $17.0 million to $137.5 million for 2010 compared to $120.5 million for 2009. The increase in 2010 was primarily driven by increased sales commissions, compensation expense and increased incentives as sales increased.

Our capital requirements depend on a variety of factors, including but not limited to, the rate of increase or decrease in our existing business base; the success, timing and amount of investment required to bring new products to market; revenue growth or decline; and potential acquisitions. We believe that we have the financial resources necessary to meet business requirements for the next 12 months, including our dividend program, the requisite capital expenditures for the maintenance of worldwide manufacturing capacity, working capital requirements and potential future acquisitions or strategic investments. As of December 30, 2011, our total shareholders equity was $1,080.7 million and we had $383.7 million in cash and cash equivalents. We had $26.5 million in short-term investments and $4.8 million in long-term investments, both primarily bank time deposits, as of December 30, 2011. In addition, as of December 30, 2011, we had $200.0 million in long-term debt outstanding (see Note 11 in the accompanying consolidated financial statements).

In 2011, our operational cash flows were $138.3 million compared to $143.0 million in 2010, a decrease of $4.6 million, due primarily to the decrease in sales, offset by reductions in accounts receivables and changes in other operating assets and liabilities. We received $275.0 million from the issuance of long-term debt, net of fees. We used approximately $9.8 million for capital expenditures. We repaid $376.7 million of debt and we returned $61.5 million to shareholders in the form of dividends. Investment balances were decreased by $31.0 million in 2011, resulting in net cash provided of $0.7 million overall. Investment balances decreased as we sold our portfolio of ARS, offset by purchases of bank time deposits.

Cash flow from stock plans including exercises of Options and sales under our ESPP was $4.4 million in 2011, compared to $6.6 million received in 2010 and $5.8 million received in 2009. We have changed the mix of new share-based incentive grants to a larger proportion of restricted and deferred stock units (Awards) than Options. Awards do not yield cash proceeds from an exercise event as do Options. Additionally, exercises are decisions of grantees and are influenced by the level of our stock price and by other considerations of grantees. The recent decline in stock price has resulted in many of our options being underwater with exercise prices in excess of the current stock price. While the level of cash inflow from exercises is difficult to forecast or control, we believe it will remain a secondary source of cash.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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