Driven by growth in their power products division, Fairchild Semiconductor ( FCS) swung to a profit in the second quarter, beating Wall Street estimates.

The company's shares were spiking on the news, up recently $1.36, or 10.5%, to $14.37.

In a press release Thursday, Fairchild said earnings rose to $17 million, or 14 cents a share, compared with a loss of $63.8 million or 54 cents a share, a year earlier.

On a "pro forma" basis, which excludes several items, earnings rose to $31.7 million, or 26 cents a share, from $3.8 million, or 3 cents a share, a year earlier. On this basis, analysts had expected the company to earn 23 cents a share.

Revenue rose 19% to $414.3 million, but came in slightly below the consensus of $418.8 million. The company said power products represented 74% of total sales in the second quarter and the company will continue to focus on this market as a primary growth area.

Following normal seasonal patterns, Fairchild expects third-quarter revenue to be "flattish" with the second quarter, although it expects gross margin to rise sequentially by 50 to 100 basis points "due to a better product mix, lower costs and more new products."

The consensus analyst earnings estimate is 28 cents a share for the third quarter.
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