The latest article about ISIL from the Motley Fool borders on stupid. Clearly these articles are computer generated from a few stock parameters. No real insight about the workings of the company. Remind me to ignore these guys in th future.
Way worse than antennagate ever was. Apple has arrogantly refused to address this problem. You get better customer service from WalMart. One of the most visited topics in apple forums.
For those of you that have done your homework you know that Necip's track record at Silabs was spotty at best. And check out SLAB annual revenues under his tenure. Not so great. - All hat and no cattle.
Generates a lot of cash? Why are 30% of the workforce gone in 1 year? Why is there debt?
Intersil's culture is top heavy and un-talented. Necip has his work cut out for him.
It is very hard to grow revenues at the moment even in a well-oiled semiconductor company. I'll bet that revenues will not be 30% higher in two years. Intersil just doesn't have the execution capacity to pull it off. Years of incompetent management by Sferrazza, Susan, and Bell have taken their toll IMHO. Even the healthy companies are struggling with growth/margin challenges. Remember...companies die from the head down. It's been a long slow death but the prognosis is unchanged.
Revenue: down slightly. Forward-looking guidance: down to flat. Big speech by Necip...full of unfulfillable statements. Yawn.
Well that's obvious datagrinder...but in it's current form ISIL is not a good deal. So your post-pruning ROI could be anything. How and when do you cut? Either way it seems like more cuts and re-org are on the way unless top-line revenue turns around soon.
I think you have to look at basic financial metrics when deciding when a company is sellable. There is no doubt the dividend payment is a bribe to keep the stock price stable. The PE multiple is astronomical and not getting any better and the layoffs are a look into the future of what management sees regarding revenue. Necip has his work cut out for him. Expect more "cleanup" from him as he gets settled in and makes the call on how to proceed. He *will* make changes.
There are a couple of VP's that have been flying below the radar. They need to be gone as well since they have no track records of turning a sinking business around.
It will be interesting to see if Necip figures out who the non-leaders in the VP ranks actually are. One thing is for sure, it won't be as easy at ISIL as it was for him at SLAB.
Just my .02 worth but I don't think Necip can help Intersil. He will have a more straightforward tone than Dave Bell and is rather soft spoken. He left SLAB after growth numbers were lackluster there. I could be wrong...it will take 24 months minimum to know for certain.
As long at the P/E is in the 100's it is not much of a cash flow play. But yes you are correct industrial products typically have long cycles, high margins, and sleepy growth. But what percentage of ISIL's revenue is actually generated by these premium products? I would not include computing power as a stable or high margin business. It can be high run-rate but it also has a lot of volatility and probably low margins as well. There is only room for ISIL in the industrial markets if they come up with truly innovative products. The latest 24 bit sigma-delta converter is years late. TI already has this covered by the ADS1282 product line which they sell at a decent margin. So yes...industrial is a nice cash cow but TI is a big player as well at LTC, ADI, MXIM. It's just not *easy* anywhere in the semi-business of today ...regardless of the market.
Tell us something we don't know.