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Fairchild Reports Q1

SAN JOSE, Calif. — Fairchild Semiconductor (NYSE: FCS), a leading global supplier of high performance power and mobile products, today announced results for the first quarter ended March 27, 2011. Fairchild reported first quarter sales of $413 million, up 4 percent from the prior quarter and 9 percent higher than the first quarter of 2010.

Fairchild reported first quarter net income of $43.5 million or $0.33 per diluted share compared to $51.0 million or $0.40 per diluted share in the prior quarter and $22.6 million or $0.18 per diluted share in the first quarter of 2010. Gross margin was 36.8 percent compared to 37.0 percent in the prior quarter and 32.2 percent in the year ago quarter.

Fairchild reported first quarter adjusted gross margin of 36.9 percent, down 20 basis points sequentially and 440 basis points higher than in the first quarter of 2010. Adjusted gross margin excludes accelerated depreciation and inventory reserve releases related to fab closures. Adjusted net income was $51.3 million or $0.39 per diluted share, compared to $57.3 million or $0.45 per diluted share in the prior quarter and $31.8 million or $0.25 per diluted share in the first quarter of 2010. Adjusted net income excludes amortization of acquisition-related intangibles, restructuring and impairments, accelerated depreciation and inventory reserve releases related to fab closures, and associated net tax impact of these items and other acquisition-related intangibles.

“We got off to great start for 2011 by delivering strong sales growth and gross margin at the high end of expectations,” said Mark Thompson, Fairchild’s Chairman, CEO and president. “We grew PCIA sales 9 percent sequentially due to the capacity additions we made to support strong demand from industrial, automotive, appliance and alternative energy customers. We have excellent backlog visibility in this business and continue to add capacity to support our customers’ requirements. We posted 1 percent sequential sales growth in our MCCC business which is particularly notable given normal end market seasonality and the weakness seen in the computing and consumer segments. MCCC sales growth was driven by further share gains in smart phones, tablets and consumer applications. Our standard product sales were down sequentially as we continue to shift capacity to higher margin business. Our core businesses, which now drive 90 percent of our total sales, are growing well and we expect to continue this trend as we enter what is typically the highest demand quarters of the year.”

Read the full press release.

{complink 1989|Fairchild Semiconductor International}

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