Fairchild 3Q Sales Lower, Predicts Even Weaker 4Q

By Features FOXBusiness

Fairchild Semiconductor (FCS) reported flat third-quarter earnings on Thursday due to weak consumer demand in its computing and consumer end markets, and said that it expects the current period’s sales to be even lower.

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The San Jose, Calif.-based chip maker reported net income of $35.8 million, or 28 cents a share, which was flat to the year-earlier period. Excluding one-time items, the company earned 34 cents, ahead of the 32-cent estimate put forth by analysts polled by Thomson Reuters.

Revenue for the third quarter was $403.2 million, down 7% from a year ago and just below average analyst estimates polled by Thomson Reuters of $404.2 million. The tech company predicts fourth-quarter sales will be even lower in the range of $350 million to $370 million.

Wall Street is looking for much higher sales in the current quarter of $397 million.

“Computing demand remained muted and we continue to drive inventory lower in the distribution channel for these products,” Fairchild CEO Mark Thompson said in a statement. “Consumer and solar demand remains weak.”

While margins worsened on high start-up costs for one of its new products, Fairchild said R&D and SG&A expenses were favorable compared with its guidance due to aggressive cost controls and lower variable compensation.

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Double-digit sales growth in the for the company's mobile analog products helped to offset weaknesses in its computing and consumer end markets, the company said. 

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