Chip maker

Fairchild Semiconductor International

raised its third-quarter revenue guidance, citing lower than expected cancellation rates.

The South Portland, Maine-based company raised its sequential third-quarter revenue growth guidance from flat to 2%, compared with its earlier guidance, where the third-quarter revenue was expected to be flat.

The company expects to report its third-quarter financial results on Oct. 19.

"Over the last four years, our sales trend for the third quarter has averaged about a 2% decrease sequentially, so we believe that our higher guidance reflects some smoothing of demand between the third and fourth quarters as we better match our sales into the distribution channel with end market demand," Fairchild said.

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