Fairchild Semiconductor announced results for the second quarter ended June 29, 2008. Fairchild reported second quarter sales of $418.7 million, up 3% from the prior quarter and 2% higher than the second quarter of 2007.
Fairchild reported second quarter net income of $6.9 million or $0.05 per diluted share compared to net income of $17.1 million or $0.14 per diluted share in the prior quarter and net income of $3.4 million or $0.03 per diluted share in the second quarter of 2007. Included in these results is an $11.3 million charge related to asset impairments and restructuring actions to streamline the company’s cost structure and a discrete $1.7 million net tax benefit. Gross margin was 28.6%, 160 basis points lower sequentially and 60 basis points higher than in the second quarter of 2007.
Fairchild reported second quarter adjusted net income of $21.5 million or $0.17 per diluted share, compared to adjusted net income of $23.2 million or $0.19 per diluted share in the prior quarter and adjusted net income of $17.7 million or $0.14 per diluted share in the second quarter of 2007. Adjusted net income excludes amortization of acquisition-related intangibles, restructuring and impairments, purchased in-process research and development, reserves for potential litigation outcomes, System General purchase accounting charges, costs associated with the redemption of convertible debt, associated net tax benefits of these items and other acquisition-related intangibles and tax benefits from finalized tax filings and positions.
"Our second quarter sales were at the high end of our expectations," said Mark Thompson, Fairchild’s President and CEO. "Orders for the second half were also strong and we enter the third quarter with a very healthy level of backlog. We benefited from record sales of our Smart Power Modules into the appliance end market, high frequency voltage regulators for handset applications and our new logic translators. We expect to accelerate new product sales in the second half of 2008 as more design wins ramp into production."
