International Rectifier Slips To Loss In Q4; Announces Restructuring Activities

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8/22/2012 4:39 PM ET

International Rectifier Corp.(IRF: Quote) reported a fourth-quarter net loss of $68.2 million, or $0.99 per share, compared to net income of $39.6 million or $0.55 per share in the year ago quarter.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

The latest-quarter results included a $69.4 million goodwill impairment, a $21.2 million gross tax benefit, $4.4 million in asset impairment charges and inventory write-offs associated with the Company's El Segundo facility closure, $1.7 million in amortization of acquisition related intangibles and $1.7 million in severance charges. Combined, these items negatively impacted fully diluted earnings per share by $0.81.

Revenue for the fourth quarter fiscal year 2012 was $269.7 million, a 15% decrease from $317.2 million in the fourth quarter fiscal year 2011. Seven analysts had consensus revenue estimate of $261.94 million for the quarter.

The Company announced operational restructuring activities including the closure of its El Segundo, California, fabrication facility. The Company expects to complete the closure of this facility by the end of March 2013. The closure of this facility is expected to save approximately $10 million per year when completed.

The company said it is also resizing its Newport, Wales, fabrication facility, which is expected to continue in several phases through the middle of calendar year 2015. The Company noted that it is in the process of finalizing the Newport facility resizing plan, and expects to include an estimate of the cost savings related to this item when it reports its first quarter fiscal year 2013 results.

The company has also initiated cost reductions in operating expenses. The reduction is expected to save approximately $20 million in operating expenses on an annualized basis starting in the December quarter of 2012.

The company expects first-quarter revenue to be between $235 million to $250 million. Gross margin is expected to be about 28%. Seven analysts have consensus revenue estimate of $274.22 million for the first-quarter.

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