Fairchild Semi Reports 2007 Financial Results For Fourth Quarter & Full Year
Fairchild Semiconductor announced results for the fourth quarter and full year ended December 30, 2007. Fairchild reported fourth quarter sales of $431.9 million, up 1% from the prior quarter and 3% higher than the fourth quarter of 2006.
Fairchild reported fourth quarter net income of $34.0 million or $0.27 per diluted share compared to net income of $20.3 million or $0.16 per diluted share in the prior quarter and net income of $8.7 million or $0.07 per diluted share in the fourth quarter of 2006. Included in these results is a $2.3 million charge related to asset impairments and restructuring actions to streamline the company’s cost structure. Gross margin was 31.3%, 100 basis points higher sequentially and 230 basis points greater than in the fourth quarter of 2006.
Fairchild reported fourth quarter adjusted net income of $41.8 million or $0.33 per diluted share, compared to adjusted net income of $34.1 million or $0.27 per diluted share in the prior quarter and adjusted net income of $26.7 million or $0.21 per diluted share in the fourth quarter of 2006. Adjusted net income excludes amortization of acquisition-related intangibles, restructuring and impairments, purchased in-process research and development, charges for potential litigation outcomes, System General purchase accounting charges, net gain or loss on the sale of product lines, associated net tax benefits of these items and other acquisition-related intangibles, and tax benefits from finalized tax filings and audit outcomes.
Full year revenues for 2007 were $1.67 billion, an increase of 1 percent compared to $1.65 billion in 2006. Fairchild reported net income of $64.0 million or $0.51 per diluted share in 2007, compared to net income of $83.4 million or $0.67 per diluted share in 2006. On an adjusted basis, the company reported 2007 net income of $113.7 million or $0.90 per diluted share, compared to $111.7 million or $0.90 per diluted share in 2006.
"We reported the highest quarterly sales, gross margin and net income since the year 2000," said Mark Thompson, Fairchild’s President and CEO. "We benefited from a higher margin product mix in the fourth quarter, especially in our Analog Products Group (APG). Our analog switch and smart power module product lines posted record sales this quarter and were up 34% and 50% respectively in 2007 compared to 2006. APG sales were down 4% sequentially but gross margin improved 370 basis points as strong growth in our higher margin signal path products was offset by lower revenue for power conversion products as we further reduced analog channel inventory dollars. The Functional Power Group increased sales 4% from the prior quarter due to strong MOSFET and SPM® growth."