Fairchild Semiconductor International (South Portland, ME) reported results for the fourth quarter and full year ended December 29, 2002. Fourth-quarter sales were $353.9 million, nine percent higher than fourth-quarter 2001 sales and two percent lower than third-quarter 2002 sales.
Fairchild reported net income in the quarter of $3.5 million, or $0.03 per diluted share, compared to a loss of $16.2 million, or $0.16 per share, in the fourth quarter of 2001. During the quarter, Fairchild had unusual charges net of gains of $9.6 million, which included severance payments for previously announced employee reductions. The company also recorded a tax benefit for the quarter of $10.7 million. Operating cash flow was $62.5 million, positive for the 16th consecutive quarter. Free cash flow was $20.5 million.
On a pro-forma basis, Fairchild reported fourth-quarter net income of $11.9 million, compared to pro-forma net income of $0.4 million in the fourth quarter of 2001. Pro-forma earnings were calculated using a zero-percent tax rate and were $0.10 per diluted share. The lower tax rate was due to a shift in income to regions with lower tax rates. If calculated with a 35-percent tax rate, pro-forma earnings would have been $0.07 per diluted share.
Full-year 2002 revenues were $1,411.9 million, compared to 2001 revenues of $1,407.7 million. The company reported a net loss of $2.5 million, or $0.02 per share, in 2002, compared with a net loss of $41.7 million, or $0.42 per share, in 2001. On a pro-forma basis, Fairchild reported net income of $28.8 million, or $0.26 per diluted share, in 2002, compared with $23.5 million, or $0.23 per diluted share, in 2001.
