Merrill Lynch Cuts Estimates on Intersil Holding

Analyst blames cancelled orders and slowing demand at end-market chipmakers

Merrill Lynch cut its estimates on Intersil Holding (ISIL ).

Analyst Christopher Danely cites push-outs and cancellations on continued inventory correction, as well as slowing demand. He cut his $890 million 2001 estimate to $685 million, and slashed the $0.96 EPS estimate to $0.35. He also lowered his $1.07 billion 2002 revenue estimate to $835 million and cut his EPS estimate of $1.17 to $0.60.

Danely believes pricing, utilization rates and margins will decline for the next two quarters. He says an inventory correction and bookings slowdown will last at least another quarter, with further downside risks possible due to the questionable economic environment and a seasonally weak first quarter 2001. Danely has near term neutral and long term buy rating on the company's stock.

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