Fairchild Semiconductor 3Q Net Income Up 449 Percent

Electronic News, Nov 6, 2000

FAIRCHILD SEMICONDUCTOR Corp. has posted a record performance for the third quarter ending Oct. 1--its eighth straight quarter of revenue growth. Earnings for the quarter were up 449 percent over last year and 22 percent over the previous quarter.

Revenues were $476 million, a 9 percent sequential increase over second-quarter revenues and up 42 percent over the $335.8 million reported for the third quarter of 1999. Third-quarter adjusted net income was $84 million, or 82 cents per diluted share, up 22 percent from $69 million, or 68 cents per diluted share, reported in the previous quarter.

Adjusted net income was 449 percent higher than the $15.3 million, or 19 cents per diluted share, reported in the third quarter of 1999.

"Our penetration across broad electronics markets continues to serve us well, as we had strong sales from many different end-segments. This further reinforces the power of our multimarket strategy," said Kirk Pond, chairman, president and chief executive officer of Fairchild. "Demand strength in mobile PCs, servers, Internet infrastructure equipment, and digital consumer products outweighed softer Korean demand and slower demand growth in desktop PCs."

Fairchild also forecasted its fourth-quarter and 2001 results. "We expect our revenues in the fourth quarter to grow to approximately $490 million, consistent with our previous guidance, which raises our expectations for 2000 revenues to now be about 39 percent over 1999 pro forma revenues of $1.3 billion," said Joe Martin, executive vice president and chief financial officer. "For 2001, we continue to expect full-year revenues to grow about 20 percent to 25 percent over 2000, which is at or above the market growth rates for our products.