Fairchild prepares for reduced revenues

Fairchild Semiconductor has reiterated its previous guidance for first quarter 2007 revenue to be down 3 to 6%.

Fairchild Semiconductor has reiterated its previous guidance for first quarter 2007 revenue to be down 3 to 6% and gross margins to be 50-100 basis points lower sequentially.

This guidance does not include the results of consolidating System General Corporation.

On 5th February 2007 Fairchild successfully completed its tender offer for System General Corporation by acquiring more than 95% of the outstanding shares.

Fairchild will consolidate System General's financial results for the period after 5th February into its financial statements beginning in the first quarter of 2007.

The company expects the first quarter financial impact of this consolidation of results, which is incremental to the above stated guidance, to be in the following ranges.

System General sales for the period 5th February to 1st April 2007 are expected to be in the range of US $5.5-6.0 million.

The gross margin on the System General revenue is expected to be 46% +/-1% in the first quarter of 2007, which does not include a one-time accounting transaction related to the purchase of System General's inventory.

Fairchild expects to report its first quarter 2007 financial results before the market opens on 19th April 2007.

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