Product category:
Microprocessors, Microcontrollers and DSPs
News Release from: Fairchild Semiconductor
Edited by the Electronicstalk Editorial
Team on 27 April 2001
Fairchild forecasts flat future
Fairchild Semiconductor has reported results for the Q1 2001 ended 1st April 2001: revenues were $385.3 million, which was down 18% sequentially from Q4 2000.
Fairchild Semiconductor has reported results for the Q1 2001 ended 1st April 2001: revenues were $385.3 million, which was down 18% sequentially from Q4 2000; and trade sales were roughly flat from Q1 2000 First quarter adjusted net income was $26.1 million, or $0.26 per fully diluted share of common stock, as compared with $52.6 million, or $0.53 per diluted share in the first quarter of 2000
This article was originally published on Electronicstalk on 28 Feb 2001 at 8.00am (UK)
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Adjusted net income is net income before amortisation of acquisition-related intangibles and nonrecurring items.
During the quarter the company had a nonrecurring charge of $22.3 million primarily for in-process research and development associated with the acquisition of Intersil's Discrete Power Product business and restructuring expenses associated with the consolidation of a wafer fabrication line in South Portland.
Including amortisation of acquisition-related intangibles and nonrecurring items, the company reported first quarter net income of $1.6 million, or $0.02 per diluted share, compared with net income of $50.0 million, or $0.51 per diluted share in the first quarter of 2000.
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Fairchild has continued to gain market share during this industry-wide inventory correction and slowdown in end market demand.
Results from Gartner, a leading global research firm, state that Fairchild outgrew its competitors in the discrete, analogue and logic market segments during 2000.
Moreover, Worldwide Semiconductor Trade Statistics (WSTS) data through the six months ended in February 2001 show that Fairchild continued to outpace overall segment growth rates in power mosfets, logic, analogue and optoelectronics.
First quarter gross margins were 30.7%.
Lower margins were a result of lower capacity utilisation, softer pricing and changes in product mix.
Operating margins before nonrecurring charges were 10.6%.
"Fairchild continues to win market share, improve our competitive position and control costs during this tough period", said Kirk Pond, chairman, president and CEO of Fairchild Semiconductor.
"In times like these, our ability to sell into many different end markets allows us to capture new business opportunistically.
During the quarter, we adjusted our product mix and pricing to drive orders and shipments in industrial and consumer markets that helped offset reduced demand from run rate business in communications and computing segments.
We saw relatively stronger demand from our automotive and industrial segments, with continued softening from networking, wireline and wireless communications, and electronic manufacturing service segments".
"While we remain very positive in our long term outlook and competitive position, we remain cautious in our outlook for the next quarter or two.
We expect our total second quarter revenues, which will include a full quarter of sales from our Discrete Power Products acquisition, to be roughly flat to down 5% sequentially.
In line with current expectations for the overall semiconductor market, we expect revenues to be flat to slightly down sequentially in third quarter of 2001, and improve sequentially in the fourth quarter of 2001.
We expect gross margins to drop roughly 400 basis points sequentially in the second quarter of 2001, due to anticipated price erosion and lower factory utilisation.
Margins should improve sequentially in the second half of 2001 as we expect progress from our cost reduction efforts to begin to offset lower pricing, and capacity utilisation to improve.
R and D and SG and A together should remain at roughly 21% of sales.
We now plan capital spending of around $155-160 million during 2001, and we expect cash levels to remain flat or increase from first quarter 2001 levels".
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