Product category:
Power Supply ICs and Controllers
News Release from: Fairchild Semiconductor
Edited by the Electronicstalk Editorial
Team on 27 July 2001
Fairchild down in second quarter
Fairchild Semiconductor has reported results for its second quarter of 2001 ended 1st July 2001.
Fairchild Semiconductor has reported results for its second quarter of 2001 ended 1st July 2001 Revenues were $372.4 million, down 3% sequentially from the first quarter of 2001, and down 15% from the second quarter of 2000
This article was originally published on Electronicstalk on 28 Feb 2001 at 8.00am (UK)
Related stories
Dual-output buffer for DDR SDRAM modules
Fairchild Semiconductor has introduced a dual-output registered buffer for 184-pin, 2.5V PC200/PC266, 72bit-wide registered double data rate (DDR) SDRAM modules.
Bus hold makes logic more predictable
Fairchild Semiconductor has made a number of additions to its LCX family, the logic industry standard for 3.3V applications.
In April, the company had guided that its second quarter revenues would be flat to down 5% sequentially.
Fairchild continued to gain market share in the second quarter.
Based on Worldwide Semiconductor Trade Statistics (WSTS) monthly sales data, Fairchild expanded market share from February to May in all of its product segments, including analogue, discrete, interface and logic, and optoelectronics.
Further reading
Controller and switch combine to cut PSU chipcount
New from Fairchild Semiconductor, the FSDH0165 power switch combines a voltage-mode PWM controller and SenseFET power switching element in a single 8-lead package.
PLL clock drivers target high-speed clocking
Two low voltage PLL clock drivers designed for use in high-speed memory clocking applications are now available from Fairchild Semiconductor.
MOSFET is ready for high-voltage car batteries
The new FDB06AN08A1 UltraFET trench MOSFET from Fairchild Semiconductor is designed for 42V automotive battery applications requiring full device capability at low gate drive voltages.
Reflecting Fairchild's ongoing focus on the power discrete and power analogue segments, Fairchild's market share grew a full percentage point to 7.5% from February to May.
Overall, Fairchild expanded its share in its served available markets from 4.5 to 5.0%.
"Fairchild executed well in the second quarter, in an electronics market plagued by weak demand and aggressive pricing.
We grew market share, continued earning design wins and introduced more than 150 new products, all while reducing our spending levels", said Kirk Pond, chairman, president and CEO.
"By keeping our lead times short and with our factories responding rapidly, we were able to turn 31% of our bookings in the quarter.
We also reduced selling costs and inventory levels.
We continued to see weak demand from the communications segments, so Fairchild penetrated further into other end markets and broadened our customer base", Pond continued.
"As a result, approximately 50% of our sales were into consumer, industrial and automotive applications, up from 41% a year ago.
This ability to respond quickly to changing market conditions and to meet the needs of a variety of end markets is a key strength of our multi-market strategy.
As we work through this challenging downturn, our business model remains strong, our employees are motivated and executing well, our balance sheet is solid, and we fully expect to emerge from this current cycle stronger and better positioned than many of our competitors".
Other second quarter highlights included: 31% of total sales from products developed within the past three years; new designs in a broad array of end market applications, including power supplies, automotive ignition control, PDAs, MP3 players, cellphone handsets, notebook PCs, servers, monitors, flat panel displays, appliance power supplies, battery chargers and industrial ballast; and balanced end market segment penetration with 20% of sales into communications, 30% into computing, 24% into consumer and displays, and 26% into industrial/automotive/military.
Second quarter adjusted net income was $5.8 million, or $0.06 per diluted share of common stock, compared with $69.0 million, or $0.68 per diluted share in the second quarter of 2000.
Adjusted net income is net income before amortisation of acquisition-related intangibles and nonrecurring items.
During the quarter the company had nonrecurring charges of $6.4 million, including a $2.5 million inventory charge associated with the discontinuance of the digitiser product line, and $3.9 million for employee severance costs.
Excluding nonrecurring charges, second quarter gross margins dropped to 25.5%, due mainly to lower pricing and lower factory utilisation.
Including amortisation of acquisition-related intangibles and nonrecurring items, the company reported a net loss in the second quarter of $8.0 million, or $0.08 per share, compared with net income of $59.7 million, or $0.59 per diluted share in the second quarter of 2000.
"During the quarter we continued to reduce spending", stated Joe Martin, executive vice president and chief financial officer.
"Excluding the amortisation of intangibles and the impact of the acquisition of the Discrete Power Products business purchased from Intersil Corporation in March, 2001, our research, development, selling, general, and administrative (R and D, SG and A) expenses dropped 14% from the first quarter and were $18 million lower than our quarterly run rate in the fourth quarter of 2000.
Including spending reductions driven by lower manufacturing volume, in the second quarter we spent approximately $100 million less than our Q4 2000 run rate.
"Looking forward we remain cautious.
We are conservatively guiding that our third quarter revenues may be down as much as 15 to 20% from second quarter levels.
We expect our third quarter gross margin to be in the 20-22% range, as we plan to continue to match production with near term demand and continue to drive our inventories lower.
We plan to continue to cut spending, and expect third quarter R and D and SG and A expenses (including intangibles) to be in the range of $67 to $70 million.
We have reduced our capital plans and now expect capital spending of around $125-135 million during 2001.
We continue to expect some rebound in order rates from PC, consumer, and wireless customers in the second half of 2001, due to seasonal factors such as back-to-school and holiday-related buying.
We believe this seasonal buying and our continued focus on cost reductions will help drive sequential increases in our revenues and margins for the fourth quarter of 2001".
• Fairchild Semiconductor: contact details and other news
• Email this article to a colleague
• Register for the free Electronicstalk email newsletter
• Electronicstalk Home Page
Search the Pro-Talk network of sites
