News

Fairchild Semiconductor Reports Results for the Third Quarter 2006

October 19, 2006 by Jeff Shepard

Fairchild Semiconductor announced results for the third quarter ended October 1, 2006. Fairchild reported third quarter sales of $417.0 million, a 3% increase from the prior quarter and 21% more than the third quarter of 2005. Fairchild reported third quarter net income of $25.1 million or $0.20 per diluted share compared to a net income of $23.0 million or $0.18 per diluted share in the prior quarter and a net loss of $20.8 million or $0.17 per share in the third quarter of 2005. Gross margin was 30.7%, 10 basis points lower sequentially and 9.9 percentage points higher than in the third quarter of 2005. Included in the third quarter 2006 results is $7.1 million in total equity-based compensation in accordance with Statement of Financial Accounting Standards (SFAS) No. 123® Share Based Payment.

Fairchild reported third quarter adjusted net income of $30.6 million or $0.25 per diluted share compared to adjusted net income of $28.8 million or $0.23 per diluted share in the prior quarter and an adjusted net loss of $3.0 million or $0.03 per share in the third quarter of 2005. Adjusted net income (loss) excludes amortization of acquisition-related intangibles, restructuring and impairments, net gain on the sale of the LED lamps and displays product line, gains from lawsuit settlements, recovery of equity investments, accelerated depreciation on assets to be abandoned and associated net tax benefits of these items and other acquisition-related intangibles. Adjusted results include equity based compensation expense in 2006.

"We reported another solid quarter of sales growth paced by continued strong demand for our power products," said Mark Thompson, Fairchild's President and CEO. "Our high and low power switches within the Functional Power Group as well as power conversion and analog switch products in our Analog Products Group all reported 5% or greater sequential revenue growth for the quarter. Our analog switch product line posted another record quarter for sales, up more than 45% from the year ago quarter."