EL SEGUNDO, CA, JANUARY 9, 1997 -- International Rectifier Corporation (IRF/NYSE/PSE) today reported net income of $3.4 million ($0.07 per share) on revenue of $118 million for its second fiscal quarter, ended December, versus $15.2 million ($0.30 per share) on revenue of $141 million in the prior-year period.

The Company attributed results in the quarter to weak MOSFET market conditions and distributors' continued efforts to reduce inventories. Gross margin for the December quarter was 34.2 percent compared to 33.7 percent for the September quarter, reflecting manufacturing cost reductions and a more profitable mix of business. Compared to the gross margin of 38.2 percent a year ago, the current-period results reflected greater price pressure and higher fixed overhead expense.

Operating expense ratios and dollar expenditures were essentially unchanged from the immediately preceding quarter. Selling & administrative expense of 22.3 percent of revenue compared to 17.9 percent in the year-ago quarter. Research and development expense for the quarter was 7.3 percent of revenue, compared to 4.5 percent in the prior-year quarter.

For the six months ended December, IR reported net income of $6.5 million ($0.13 per share) on revenue of $233.2 million, compared to net income of $28 million ($0.55 per share) on revenue of $267.1 million in the year-ago period.

Unaudited Consolidated Statement of Income
Consolidated Balance Sheet

International Rectifier is a major worldwide supplier of power semiconductors, which convert electrical energy to operate power supplies, motor drives, and lighting ballasts. Its patented HEXFET^® power MOSFETs and IGBTs make IR the world leader in field effect transistors. The Company's technological advances improve the performance and energy efficiency of electronic and electrical equipment in automotive, consumer, computer/peripheral, industrial, lighting, telecom, and government/space applications.

NOTE: A conference call for investors will begin today at 11:00 am Eastern (8:00 am Pacific). Participants can join the call by dialing 212.346.0180 A taped replay of the call will be available for a week following the conference. The phone number to hear the tape is 800.633.8284. Please refer to reservation # 2316641 when you call to hear the recording.

Company contact: Shelley Wagers, 310-726-8512.