International Rectifier Revises June Quarter Financial Outlook

    EL SEGUNDO, Calif.--June 14, 2001--International Rectifier Corp. today announced that revenues for its fiscal 2001 fourth quarter ending June are expected to be $179-193 million, down 30-35 percent from record revenues of $276 million in the March quarter.
    Previously, IR had estimated revenues of $237-257 million for the June quarter. Gross margins are expected to decline 2-3 percentage points in the June quarter from the prior quarter's 41.6 percent record level, but to remain above the 38.5 percent gross margin attained in the June quarter a year ago.
    International Rectifier CEO Alex Lidow said: "We expected the datacom and telecom segment of our business to be down about 50 percent from the March quarter, but business conditions in these markets have deteriorated even further during the quarter. We now expect our revenues from this segment to be down about 70 percent. At the same time, weaker than expected demand from other information technology markets has delayed the volume ramp of our high-performance products with industry leaders. IR's turns business remains well below plan at about 10 percent of expected revenues, versus our previous estimate of about 30 percent.
    "Looking ahead, we expect revenues for the September quarter to be flat with the June quarter," said Dr. Lidow. "We believe business conditions will improve later in the year, consistent with the recent forecast of the Semiconductor Industry Association. We expect to grow revenues for the 2002 fiscal year 5-15 percent, down from the previous estimate of 20-25 percent growth. Currently, we believe the low point for gross margins will be around 37 percent in the September quarter and will expand with the rising revenues anticipated through the balance of the fiscal year. Our cash position of over $800 million provides IR with enormous flexibility to strengthen our position as the leader in power management during this global market slowdown."