Intersil Corporation (ISIL) is an OEM [original equipment manufacturer] of analog and mixed signal semiconductor ICs. June quarter revenue was in-line with consensus estimates, while the EPS exceeded. Forward guidance is for a 1-3% revenue increase in the next quarter. We are maintaining our Hold rating on the shares.

Shares of Intersil are currently trading at a 14.7x multiple of our current 2008 earnings estimate (P/E). Intersil's product breadth and increasing penetration indicate that it is relatively well positioned in the markets in which it operates. This could be a key factor in the next two years, if the recessionary trends continue. Recent acquisitions have augmented the product portfolio and increased the percentage of consumer and industrial products in the mix, which is a positive for revenue growth and margin expansion.

The management is improving the mix of products, and also implementing other initiatives to reduce costs and maintain