International Rectifier Announces First Fiscal Quarter Results

International Rectifier Corporation (NYSE:IRF) today announced financial results for the fiscal first quarter ended September 30, 2008. Revenue for the first quarter of fiscal year 2009 was $244.5 million, which included $18.7 million in revenue recognized from a one-time patent license amendment. Excluding Intellectual Property and Transition Services segment revenue, fiscal first quarter 2009 revenue from ongoing customer segments was $212.1 million, up 12% compared with $189.4 million in the prior quarter and down 12%, compared with $240.4 million reported in the first quarter of fiscal year 2008.

International Rectifier reported a fiscal first quarter 2009 net loss of $4.5 million, or a loss of $0.06 per share, compared with a net loss of $51.8 million or a loss of $0.71 per share in the prior quarter, and net income of $10.4 million or $0.14 per diluted share in the first fiscal quarter of 2008.

Gross margin, including Intellectual Property and Transition Services segments was 39.4%. Excluding Intellectual Property and Transition Services segments, fiscal first quarter 2009 ongoing customer segments gross margin was 36.3%, 140 basis points higher than in the prior quarter. The ongoing customer segments gross margin was about flat compared with the first fiscal quarter of 2008.

In the first quarter of fiscal year 2009, Selling and Administrative expenses were approximately $65.3 million, down from $80.5 million in the prior quarter. Of this $65.3 million, approximately $16.4 million was associated with consulting fees and expenses related to the audit committee investigation, financial restatement, financial reports preparation and filing and proxy contest.

R&D expenses were $24.7 million, or flat, compared with $24.6 million in the prior quarter.

Cash, cash equivalents and marketable investments totaled $712 million at September 30, 2008. This includes restricted cash of $19.4 million. Net cash used in operating activities in the first quarter of fiscal year 2009 was $19.9 million.

Second Quarter Outlook

"We expect second fiscal quarter revenue from ongoing customer segments to range between $160 million and $190 million,” stated International Rectifier President and Chief Executive Officer Oleg Khaykin. "Visibility remains limited which impairs our ability to provide a more precise range in our outlook.”

Segment Table Information

The segment tables included with this release for the Company’s fiscal quarter ended September 30, 2008, June 30, 2008 and September 30, 2007, respectively, reconcile revenue and gross margin for the Company’s ongoing customer segments to the consolidated total amounts of such measures for the Company.

About International Rectifier

International Rectifier Corporation (NYSE:IRF) is a world leader in power management technology. IR’s analog, digital, and mixed signal ICs, and other advanced power management products, enable high performance computing and save energy in a wide variety of business and consumer applications. Leading manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR’s power management solutions to power their next generation products. For more information, go to www.irf.com.

Forward-Looking Statements:

This document contains "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts, (b) predict or forecast future events or results, or (c) embody assumptions that may prove to have been inaccurate. These forward-looking statements involve risks, uncertainties and assumptions. When we use words such as "believe,” "expect,” "anticipate,” "will” or similar expressions, we are making forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give readers any assurance that such expectations will prove correct. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond our control. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, reduced demand arising from a decline in general market and economic conditions; continued volatility and further deterioration of the capital markets; the impact of regulatory, investigative and legal actions; increased competition in the highly competitive semiconductor business that could adversely affect the prices of our products; our ability to maintain current IP licenses and obtain new IP licenses; the material weaknesses in our internal control over financial reporting that we have identified that could impact our ability to report our results of operations and financial condition accurately and in a timely manner and the extensive work remaining to remedy these material weaknesses in our internal control over financial reporting; and other uncertainties disclosed in the Company’s reports filed with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 10-Q. Additionally, to the foregoing factors should be added the financial, market, supply disruption and other ramifications of terrorist actions and natural disasters.

NOTE: A conference call will begin today at 5:15 p.m. Eastern time (2:15 p.m. Pacific time). Participants can join the call by dialing 706-679-3195 or by logging onto the Internet at http://investor.irf.com or http://www.streetevents.com at least 15 minutes ahead of the start time. A replay of the call will be available from 7:15 p.m. Eastern time (4:15 p.m. Pacific time) on Thursday, November 6 through Thursday, November 13. To hear the replay, call 800-642-1687 (for international callers 706-645-9291) and use reservation number 71349197, or use the websites listed above.

For the three months ended September 30, 2008, June 30 2008 and September 30, 2007, respectively, revenue and gross margin by reportable segments are as follows (in thousands, except percentages):

"Ongoing Customer Segments” above includes our Power Management Devices, Energy-Saving Products, HiRel, Automotive Products and Enterprise Power segments.