Fairchild Semiconductor (NYSE: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.
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.
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.