Fairchild Reports Second-Quarter 2003 Results
Fairchild Semiconductor International (South Portland, ME) reported results for the second quarter ended June 29, 2003. Second-quarter sales were $347.1 million, down slightly from the previous quarter and down 3.7% from second quarter 2002. Fairchild reported a net loss in the quarter of $63.8 million, or $0.54 per share, compared to a net loss of $13 million, or $0.12 per share, reported in the second quarter of 2002. Included in the second-quarter 2003 results are pre-tax charges for restructuring, impairments and debt refinancing totaling $77 million.
On a pro-forma basis, which excludes amortization of acquisition-related intangibles, restructuring and impairments, and other items, Fairchild reported second-quarter net income of $3.8 million, or $0.03 per diluted share, compared to pro-forma net income of $7.5 million, or $0.07 per diluted share, in the second quarter of 2002.
"We're executing significant restructuring and debt refinancing initiatives to lower our costs from the second-quarter baseline," said Kirk Pond, president, CEO and chairman of the Board. "We expect these steps to generate pre-tax savings of roughly $53 to 58 million annually. We expect to realize the impact of these savings starting in the third and fourth quarters of 2003 with the full benefit realized in the first half of 2004."