International Rectifier makes its case for energy efficiency.The last time a computer chip company ingrained itself in the public psyche was in the 1990s, when Intel Corp. put engineers in white lab suits and had them dance around the lab for its "Intel Inside" ad campaign. Local chipmaker chip·mak·er n. A manufacturer of electronic and integrated circuit chips. International Rectifier International Rectifier Corp. (NYSE: IRF) is a manufacturer of power semiconductors (MOSFET, IGBT, diodes and thyristors), located in El Segundo, California, USA. It has a market capitalization of 2.48 billion USD and is listed on the S&P Midcap 400. Corp. hopes to make a similar name for itself, minus the bunny suits The protective clothing worn by an individual in a clean room that keeps human bacteria from infecting the chip-making process. The outfit makes people look like oversized rabbits. . "There has been an uptick Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. in people wanting to buy the energy efficient products," said Graham Robertson, spokesman for the El Segundo-based company. "We're inside the energy efficient washing machines, the air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. units, the hybrid cars--you'll find our devices in there." The company is trying to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. what it sees as a surge in energy consciousness gripping the appliance-buying public. Chief Executive Alex Lidow has been offering to give talks on energy efficiency, and company announcements are not complete without an emphasis on the energy-saving stats of its latest chips. Oddly enough, IR has not altered its chips substantially, nor is it unveiling a new raft of "green" products. Its chips can cut electricity consumption by 30 percent to 70 percent, and have been able to for some time. "The reality is that we've had energy-saving products forever," Robertson said. But last quarter, the energy-saving products group accounted for 27 percent of the company's business, and was the company's most profitable unit, accounting for nearly 50 percent of gross margins. The company has decided it is now time to play up the "green" side of its business. "They're trying to push that more," said Jim Schneider, analyst with Wedbush Morgan Securities. "Their CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. has a vision about where the world--especially the developing world--is going in terms of energy savings, and they're trying to capitalize on this green market." The company supplies chips to Whirlpool Corp., AB Electrolux, General Electric Co. and Sanyo Electric Co., and works with major car manufacturers on hybrid vehicles This is a list of hybrid vehicles in chronological order of production: Early designs
"They're not the only ones in the game," Schneider said. Fairchild Semiconductor International Inc. ($1.3 billion in revenues) and ON Semiconductor Corp. ($1.4 billion in revenues) also make energy-efficient chips. "Both of those companies talk less about this energy efficient and green technology thing, but both have the same products," Schneider said. International Rectifier is hoping to cast a green shadow over,the competition. The company recently hit what some analysts are calling a "rough patch," reporting Deceinber results in-line but lowering guidance for its March quarter. It earned $24.3 million (34 cents a share), for the quarter ended Dec. 31, compared with $39.5 million (55 cents a share) in the year-ago period. Revenues for the quarter sank almost 7 percent to $270 million. Inventory buildup build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. was partly to blame, and the company miscalculated which products its customers would want to buy. By focusing its efforts on the energy-efficient market, where in many cases it develops custom chips with the manufacturer, the company is looking to boost the sunnier side of the business. "They're targeting more stuff toward the white-goods market," Schneider said, referring to energy-efficient refrigerators and washing machines. The company's bread and butter business remains in computers and communication systems. It makes the chips that control battery power and keep lap top computers from overheating Overheating An economy that is growing very quickly, with the risk of high inflation. , for example, or control the light and power flowing into a flat-screen LCD television screen. About 34 percent of its business comes from computing, 14 percent from commodity chips, and 12 percent from aerospace. International Rectifier's chips powered up the Mars Rover A Mars rover is an unmanned rover used for exploration of the planet Mars. They are deployed because it has so far been too costly and difficult to achieve a manned mission to Mars, and because probes and satellites are too limited (due to their immobility or their distance from , for example. But don't expect to be entertained by an International Rectifier commercial any time soon. Part of the reason Intel's ad campaign was so successful is that the company co-financed the advertising campaigns with the PC makers that used its chips. International Rectifier hasn't even increased its advertising and marketing budget this year. Instead, the company is focusing the marketing campaign on its first-tier customers: the auto companies, white-goods manufacturers and television makers. "It would be lovely for people to buy a product because it has International Rectifier inside it," Robertson said. "But the reality is that we're a little ways away from that right now." The company's first foray into Verb 1. foray into - enter someone else's territory and take spoils; "The pirates raided the coastal villages regularly" raid encroach upon, intrude on, obtrude upon, invade - to intrude upon, infringe, encroach on, violate; "This new colleague invades my a joint marketing agreement came last year in Japan. It entered into a venture with Sanyo to design and package a small motor module that would be used in energy-efficient washing machines. The company did not disclose the financials terms of the joint venture agreement, but Robertson called it a "sizeable opportunity" to create brand recognition and inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ into the Japanese market. HILARY POTKEWITZ Staff Reporter |
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