Fairchild Semiconductor (FCS) was down 6.7% in late morning after it said second-quarter revenue was likely to be about 5% below the first quarter, at the low end of previous estimates.

The chipmaker said it sees evidence that sales will bottom in the summer, with third-quarter results suffering and a rebound evident in the fourth quarter.

Fairchild also announced it plans to offer $200 million in convertible notes, to be placed in June. The money will be used for general corporate purposes, including acquisitions, the company said.