EL SEGUNDO, CA., (JULY 1998) -- International Rectifier Corporation (IRF/NYSE/PSE) today reported net income for the fiscal year ended June 1998 of $16.5 million ($0.32 per share) on revenue of $551.9 million, up 14 percent from the prior year. Excluding the impact of charges associated with a restructuring program, IR reported net income of $15.4 million ($0.30 per share) on revenue of $486.1 million for the prior year's period. The Company also reported that unit sales increased 38 percent year-to-year indicating strong growth in underlying applications for its products as well as a higher market share.

In the quarter ended June 1998, IR reported net income of $400,000 ($0.01 per share) versus a loss of $53.5 million ($1.04 per share) in the year-ago quarter. Excluding costs associated with a restructuring program, the Company earned $5.1 million ($0.10 per share) in the year-ago quarter. Revenue increased by 3 percent to $133.8 million from $130.2 million in the prior-year quarter. This compares with revenue of $140.4 million and net income of $3.3 million ($0.06 per share) in the March quarter.

The Company's overall performance was impacted by the strike at General Motors, softness in the computer market and continued pricing pressure, caused in part by the decline in the value of the JapaneseYen.

Gross margin was 29.0 percent compared to 31.7 percent for the March quarter, reflecting lower prices. IR's gross margin for the year-ago quarter was 35.0 percent, excluding a $4 million charge associated with the restructuring program, and 31.9 percent, including the charge. Selling and administrative expense sequentially declined $1.2 million, but was flat at 19.1 percent of revenue when compared to the preceding quarter, and was down 2 percent from the year-ago quarter. Research & development expense was unchanged from the prior quarter. As a percentage of revenue, it was 8.1 percent in the June quarter as compared to 7.7 percent in the preceding quarter and 7.4 percent in the year-ago quarter.

Royalties contributed $4.0 million, compared to $4.3 million in the preceding and $5.1 million in the year-ago quarter. The year-to-year and quarter-to-quarter comparisons reflect significant changes in currency exchange rates and market conditions.

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 HEXFETR 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 5:15pm Eastern (2:15pm Pacific). Participants can join the call by dialing 212.896.6019. A taped replay of the call will be available through midnight Pacific time on Wednesday, July 29. The phone number to hear the replay is 800.633.8284. Please refer to reservation #449-5750 when you call to hear the recording.