After nonrecurring items, the company reported a net loss of $29.6 million ($0.57 per share) in the current quarter. These items included a noncash, pre-tax charge of $33.9 million ($0.65 per share) associated with SOP 98-5, an AICPA-mandated change in accounting principles for start-up costs, and a charge associated with employee severances.

In the quarter ended June, revenue increased sequentially by $10 million, led by strength in automotive applications, lighting, motor drives and telecom power supplies, as well as the distribution channel.

IR’s unit shipments increased 28 percent year-to-year and 13 percent sequentially. Royalties contributed $8.0 million in the quarter, compared with $7.4 million in the preceding and $4.0 million in the year-ago quarters.

Excluding the impact of SOP 98-5 accounting standards, gross margin was 28.8 percent, essentially unchanged from the preceding and year-ago periods. After the one-time effect of the SOP 98-5, June-quarter gross margin was 26.9 percent.

For the year ended June 1999, International Rectifier reported net income of $6.1 million ($0.12 per share) on revenue of $545.4 million, excluding nonrecurring items. IR reported net income of $16.5 million ($0.32 per share) on revenue of $551.9 million in the prior year. After nonrecurring items, the company reported a net loss of $5.8 million ($0.11 per share) in fiscal 1999.

The company reported that June-quarter orders rose by 27 percent year-to-year and were unchanged sequentially. IR enters the first quarter of fiscal 2000 with backlog shippable in the period running 10 percent higher than in the March quarter. Orders and sell-through of IR product in the distribution channel reached record levels in the June quarter.

Alex Lidow, chief executive officer, commented, “Business conditions continue to improve: Pricing is firming, the recovery is spreading to a broader base, and distributors are ordering aggressively to keep up with growing end demand.

“IR is adding momentum with recent share gains and design wins for leading-edge digital cell phones, systems using Intel Corp.’s Pentium(R) III microprocessor, and power ICs for automotive and motor controls.

“We expect to override the seasonal drop typical for September- quarter revenues and to accelerate revenue growth in December and the following quarters. Continued price stability, cost reductions, and a richer business mix will lift gross margins, and lower sales and administrative expense will contribute positive earnings leverage.”

During the quarter, the company announced several major technology developments targeted to specific high-growth applications. IR’s new high-voltage MOSFETs combine multiple technologies to deliver benchmark performance in power supplies for servers and routers. New low-voltage trench MOSFETs sharply increase switching efficiency in portable electronic equipment.

A family of low-voltage MOSFETs using advanced planar technology simplify and shrink power circuits in automotive applications and uninterruptible power supplies. The company also introduced a new chipset built around a unique 1200-volt power IC that increases reliability and simplifies circuitry in industrial motor drives.

At the end of June, International Rectifier improved its cash flow and increased its flexibility by securing financing of $155 million to replace existing debt, and an undrawn $70 million revolver.

International Rectifier provides enabling technologies for products that work smarter, run cooler and increase productivity per watt.

IR sets the standard for performance and system architecture in power electronics for next-generation products in portable electronics, Internet infrastructure, industry, automotive, satellites and home appliances. It’s patented HEXFET(R) power MOSFETs, power ICs, modules and subsystems, and related components make IR a world leader in power conversion.

The foregoing material contains some forward-looking statements. The company cautions that such statements are subject to a number of uncertainties, and actual results may differ materially. Factors that could affect the company’s actual results include delays in or higher-than-anticipated expenses associated with implementing planned cost reductions; the effectiveness of cost controls; the impact of changes in accounting methods; the impact of export controls; delays in transferring and ramping production lines or completing customer qualifications; the accuracy of customers’ forecasts; the rate of customer inventory adjustments; push-out of delivery dates; product returns; changes in customers’ order patterns; the company’s mix of product shipments; market and sector conditions that affect the company’s customers and licensees; pricing pressures; acceptance of competitors’ products; introduction, acceptance and availability of new products; the ability of suppliers and subcontractors to meet their delivery commitments to the company; impact on the company’s business due to internal systems or systems of suppliers and other third parties adversely affected by year 2000 problems; general economic conditions in the company’s markets around the world; and other uncertainties disclosed in the company’s filings with the Securities and Exchange Commission.