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International Rectifier mulls product line sale

Richard Ball
Thursday 13 April 2006 10:39

Power semiconductor specialist International Rectifier said it may sell some of its non-core product lines, which currently account for almost a quarter of its revenue.

IR said the 'Non-Focus Products' business includes non-aligend products and commodity products.

"These products are not considered to be aligned with the company's long-term objectives or do not meet its gross margin and revenue growth targets," said the firm.

The company's main product areas are computing and communications; energy-saving products; and aerospace and defence.

Latest results for IR's financial second quarter show adjusted earnings of $26.5m on revenues of $279m. the non-focus products group declined 10 per cent in that quarter from the previous three months.

The focus product areas achieved a gross margin of 48 per cent, while the non-focus group only managed 13.5 per cent in the recent quarter.

Further details on a possible sale will made announced on April 27, said IR.

www.irf.com

 

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