This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fairchild Semiconductor Reports Results For The Third Quarter 2012

Fairchild Semiconductor (NYSE: FCS), the leading global supplier of power semiconductors, today announced results for the third quarter ended September 30, 2012. Fairchild reported third quarter sales of $358.8 million, down 1 percent from the prior quarter and 11 percent lower than the third quarter of 2011. Third quarter revenue includes approximately a $3 million insurance recovery related to the Thailand flooding which was included in the original assumptions for third quarter guidance.

Fairchild reported third quarter net income of $24.7 million or $0.19 per diluted share compared to $11.9 million or $0.09 per diluted share in the prior quarter and $35.8 million or $0.28 per diluted share in the third quarter of 2011. Gross margin was 33.5 percent compared to 32.6 percent in the prior quarter and 35.9 percent in the year-ago quarter.

Adjusted net income was $32.3 million or $0.25 per diluted share, compared to $17.6 million or $0.14 per diluted share in the prior quarter and $44.5 million or $0.34 per diluted share in the third quarter of 2011. Adjusted net income excludes amortization of acquisition-related intangibles, restructuring and impairments, accelerated depreciation related to fab closures, write off of deferred financing fees, charges for litigation and associated net tax effects of these items and other acquisition-related intangibles.

“As expected, we posted solid sequential sales growth for mobile products,” said Mark Thompson, Fairchild’s chairman and CEO. “Offsetting the mobile growth was incremental weakness in other end markets, especially computing, where we were also more selective in accepting commodity notebook-related business. We under-shipped consumption in the distribution channel by about $8 million as we continue to aggressively control inventories during this uncertain economic time. If we had shipped in line with distribution sell through, sales would have been up sequentially in the third quarter.”

Third Quarter Financials

“Gross margin increased 1 point sequentially due primarily to a richer product mix and lower variable compensation,” said Mark Frey, Fairchild’s executive vice president and CFO. “R&D and SG&A expenses were $85.8 million which was significantly better than guidance due to spending controls and the reversal of variable compensation expenses accrued in prior quarters. Free cash flow was a negative $17.5 million due to increases in accounts receivable and capital expenditures. We increased internal inventory dollars slightly to support higher mobile demand.”

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.27 0.00%
FB $101.00 0.00%
GOOG $684.12 0.00%
TSLA $143.67 0.00%
YHOO $27.10 0.00%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs