Investment Conclusion
While Intersil trades at a discount to our comp
group on ev/sales (-39% vs -10% last three years), we believe the transition from computing to traditional analog markets will result in subaverage growth in CY10. Maintain 2-EW.

Summary
􀂉 Q3 PF EPS of $0.15 was higher than our estimate
of $0.12 due to higher sales (up 14% vs guide of
6-10%). Consumer (28% of sales) increased 25%
QoQ, computing (34% of sales) grew 11% QoQ,
and industrial (19% of sales) increased 14%.
􀂉 Revenue growth of 1-5% in Q4 is slightly below
seasonal in our view. While a sequential decline in
the computing and consumer segments is unusual
for Q4, we think this trend signifies an early prebuild.
Orders post golden week appear normal
thus far.
􀂉 Even though computing was stronger than
expected in Q3, gross margin was in line with
guidance at 54.5%.
􀂉 Our estimates increase to $0.48 from $0.41 in
CY09 and to $0.75 from $0.60 in CY10.
􀂉 Our $13 pric

Stock Rating Target Price
New: 2-Equal Weight New: US$ 13.00
Old: 2-Equal Weight Old: US$ 12.00