Fairchild Keeps Revenue Forecast

Fourth-quarter revenue should increase 5% sequentially.
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Fairchild Semiconductor

(FCS)

reiterated its guidance for the fourth quarter, saying revenue will probably increase about 5% and gross margin should climb 200 to 300 basis points sequentially.

The company offered the same forecast in mid-October. Based on Fairchild's third-quarter sales of $345.5 million and gross margins of 20.8%, the forecast implies a fourth-quarter top line of $362.8 million and a margin of 22.8% to 23.8%.

Analysts surveyed by Thomson First Call are looking for revenue of $362.3 million in the December quarter. Shares of Fairchild were up 51 cents, or 3%, to $17.01.

The South Portland, Maine, chipmaker said Wednesday that demand continues to be seasonally strong for products used in notebook computers, televisions, DVDs and other consumer electronics. Bookings have also increased for hardware used in power supply and battery charger applications among Fairchild's industrial customers.

"From a product perspective, order rates have been up across virtually all of our product lines," the company said. "Demand has increased for our system regulators and power conversion analog products supporting the computing, consumer and industrial end-markets."

Fairchild expects to report its fourth-quarter financial results before the market opens Jan. 19.