EL SEGUNDO, CA., (JULY 1996) -- International Rectifier Corporation (IRF/NYSE/PSE) today reported 48 percent earnings growth and 27 percent revenue growth for its fourth fiscal quarter, ended June. The Company set new revenue and profit records, earning $20.4 million ($0.40 per share) on revenue of $155.7 million, versus $13.8 million ($0.27 per share adjusted for a two-for-one stock split) on revenue of $122.1 million in the prior-year period. Earnings for the June quarter and the full year were taxed at 31 percent compared to 17 percent in the prior year.

For the year ended June, IR reported a 69 percent increase in net income on a 34 percent increase in revenue. Fiscal year 1996 income of $66.5 million ($1.29 per share) on revenue of $576.8 million compared to net income of $39.4 million ($0.84 per share, adjusted for a two-for-one stock split) on revenue of $429.0 million in the prior year.

IR's robust growth and earnings expansion reflected the Company's ability to capture more value with proprietary products and chipsets, as well as the benefit of greater volume and efficiencies.

Year to year, gross margins for the June quarter rose to 41.4 percent from 36.0 percent, reflecting a rising proportion of revenue from value-added products. Selling & administrative expense declined to 17.4 percent of revenue from 18.5 percent in the year-ago quarter. Research and development expense for the June quarter was 5.0 percent of revenue, compared to 4.5 percent in the prior-year quarter.

The Company attributed a 10 percent year-to-year decline in its orders and a book-to-bill ratio of 0.86 for the quarter to shorter leadtimes and reductions in customer inventories. End-use consumption rates remained strong. Based on current visibility, the Company expects that as inventories are adjusted, orders will align with end-use demand and be strong in this fiscal year.

The Company's expectations involve a number of factors that could cause actual results to differ materially, including customers' inventory management practices, market acceptance of rival products, the growth of industry sectors using the Company's products, the accuracy of the Company's and its customers' market forecasts, and general economic conditions in major markets around the world.

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^R 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.

Company Contact: Shelley Wagers (310) 726-8512