Fairchild Semiconductor Lowers Second-Quarter Guidance
Fairchild Semiconductor International Inc. (South Portland, ME) has lowered its second-quarter guidance, noting that bookings, turns and orders booked with current quarter delivery requests were lower than expected. The company now anticipates second-quarter sales to be flat to down with the prior quarter, and said that gross margins would be 100 to 200 basis points lower, sequentially. The company had originally forecast sales and gross margin to be flat to slightly higher than that of the first quarter of $362.8 million and 23.1 percent, respectively.
"We believe much of this softness is due to the higher-than-normal inventory position we had in the distribution channel entering the quarter," stated Fairchild President and CEO Mark Thompson. "In the first few weeks in my new role as President and CEO of Fairchild, we've focused on this issue, and my leadership team and I are intent on systematically improving our management of distribution re-sales and inventories."