Fairchild Semiconductor Reports Fourth-Quarter Results

January 24, 2001 by Jeff Shepard

Fairchild Semiconductor International (South Portland, ME) reported results for the fourth quarter and full year ended December 31, 2000. Fourth-quarter revenues were $468.8 million, up 30 percent over the $361.0 million reported for the fourth quarter of 1999. Annual revenues for 2000 were $1,783.2 million, a 54 percent increase over the $1,160.0 million reported for calendar 1999. Revenues increased 37 percent over pro-forma revenues of $1,302.1 million in 1999.

"Our broad market penetration and strong new product mix helped offset weak demand and cancellations from the personal computer segment this quarter," said Kirk Pond, chairman, president and CEO of Fairchild Semiconductor. "Demand from networking, communications, industrial and some consumer segments helped us keep our trade sales slightly ahead of third quarter. Our focus on providing high performance products critical to multiple end markets continues to gain momentum."

Fourth-quarter adjusted net income was $76.9 million, or $0.76 per fully diluted share of common stock, up from $33.0 million, or $0.36 per diluted share in the fourth quarter of 1999. Adjusted net income for 2000 was $282.5 million, or $2.79 per diluted share, and was up 217 percent from pro-forma adjusted net income of $89.1 million in 1999.

"We announced an agreement to acquire the Discrete Power Business from Intersil Corp. which, when completed, will make Fairchild the second largest power MOSFET supplier, and one of the leading power transistor suppliers, in the world. This acquisition will dramatically strengthen our automotive business and bolster our position in the industrial segment, particularly in the US and Europe, while providing Fairchild an established entry into the high-margin aerospace market. We expect these timely investments to position us to grow even faster when the market rebounds later this year," Pond said.