International Rectifier May Sell Units

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International Rectifier Corp. said Wednesday that it is exploring the potential sale of product lines not aligned with its core business of providing power management technology for computers, appliances and vehicles


The El Segundo-based company previously announced plans to de-emphasize its commodity business and accelerate the transition to high-performance analog, mixed-signal, and digital integrated-circuit and advanced-circuit products. These products are currently included in the company’s focus products group, which was 77 percent of revenues in the most recently reported quarter, with gross margins of 48 percent.


Non-focus products comprised 23 percent of company revenues in the most recently reported quarter. These products are not considered to be aligned with International Rectifier’s long-term objectives or do not meet its gross margin and revenue growth targets, the company said.


International Rectifier reported $1.17 billion in revenue for the fiscal year ended in July 2005, with non-focus products accounting for $316.8 million in revenue that year.


Goldman, Sachs & Co. has been retained to advise the company on a possible sale. Shares of International Rectifier closed up 0.5 percent to $41.37.

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