News

Fairchild Reports Results For First Quarter Of 2008

April 20, 2008 by Jeff Shepard

Fairchild Semiconductor announced results for the first quarter that ended March 30, 2008. Fairchild reported first quarter sales of $406.3 million, down 6% from the prior quarter and 1% higher than the first quarter of 2007.

Fairchild reported first quarter net income of $17.1 million or $0.14 per diluted share compared to net income of $34.0 million or $0.27 per diluted share in the prior quarter and net income of $6.3 million or $0.05 per diluted share in the first quarter of 2007. Gross margin was 30.2%, 110 basis points lower sequentially and 250 basis points higher than in the first quarter of 2007.

Fairchild reported first quarter adjusted net income of $23.2 million or $0.19 per diluted share, compared to adjusted net income of $41.8 million or $0.33 per diluted share in the prior quarter and adjusted net income of $20.1 million or $0.16 per diluted share in the first quarter of 2007. Adjusted net income excludes amortization of acquisition-related intangibles, restructuring and impairments, purchased in-process research and development, System General purchase accounting charges, associated net tax benefits of these items and other acquisition-related intangibles, and tax benefits from finalized tax filings and audit outcomes.

"Bookings have been strong since Lunar New Year, which supports our expectation of second quarter revenue growth," said Mark Thompson, Fairchild’s President and CEO. "Distributor sell-through also increased in March after a weak February and we expect channel sales to grow sequentially in the second quarter. Our continued supply chain discipline should allow us to quickly respond to improving demand. We also expect our new products to drive sales growth at strong margins. We reported record sales for our Smart Power Modules and anticipate this trend to continue in Q2. Sales of our latest video filters for set-top box applications jumped more than 35% sequentially in the first quarter and bookings were even stronger. We also increased our sales of high frequency voltage regulators for the handset market and expect solid growth across 2008."