Fairchild Semiconductor Reiterates Guidance for the Third Quarter
August 31 2005 - 7:30AM
Business Wire
Fairchild Semiconductor (NYSE: FCS), the leading supplier of high
performance products that optimize power, today reiterated guidance
for third quarter 2005 sales to be flat and gross margin to flat to
slightly higher sequentially. "Demand continues to improve as
bookings in August were greater than July allowing us to steadily
increase our backlog," said Mark Thompson, Fairchild's president
and CEO. "We're booking at a run rate ahead of where we were at
this same point a quarter ago, driven by broad-based strength
across all end markets. Order rates have been particularly robust
for products serving the computing market, especially for notebook,
server and storage applications. Demand in the consumer market has
also been strong, paced by higher demand for products serving DVD,
television, games and set-top box applications. "From a product
perspective, we're building backlog for most product lines," stated
Thompson. "We have significantly increased our backlog in low power
discrete switches and system power regulators supporting the strong
demand in the computing market. Backlog is also up for our signal
conditioning products and analog switches, targeted to the consumer
and handset markets. We had record bookings in August for our
analog switch family on the strength of a number of new designs in
ultra-portable applications. We also won new designs in DVD and LCD
monitor applications with our new family of low cost video filters,
helping significantly increase bookings in this business compared
to the prior quarter. Our new, proprietary uSerDes(TM) family of
interface products that allow customers to better manage the signal
flow across ribbon connectors in handsets and related applications
also saw strong design activity. We've won three significant
designs to date with shipments expected to start as early as late
2005. We expect to ramp the sales of these products across 2006 as
these designs, plus others that are in process, are launched.
"We're continuing our efforts to increase re-sales and improve the
inventory mix at our distributors, while further reducing channel
and internal inventories," stated Thompson. "I'm confident our
actions in the short term are positioning us to better leverage the
typically higher seasonal demand in the coming months." Fairchild
expects to report its third quarter financial results before the
market opens on October 13, 2005. About Fairchild Semiconductor:
Fairchild Semiconductor (NYSE: FCS) is the leading global supplier
of high performance power products critical to today's leading
electronic applications in the computing, communications, consumer,
industrial and automotive segments. As The Power Franchise(R),
Fairchild offers the industry's broadest portfolio of components
that optimize system power through minimization, conversion,
management and distribution functions. Fairchild's 9,000 employees
design, manufacture and market power, analog & mixed signal,
interface, logic, and optoelectronics products from its
headquarters in South Portland, Maine, USA and numerous locations
around the world. Please contact us on the web at
www.fairchildsemi.com. Special Note on Forward-Looking Statements:
Some of the paragraphs above contain forward-looking statements
that are based on management's assumptions and expectations and
that involve risk and uncertainty. Forward-looking statements can
be identified by the use of forward looking terms such as "we
believe", "we expect", "we anticipate", or "will" or refer to
management's expectations about Fairchild's future performance.
Many factors could cause actual results to differ materially from
those expressed in forward-looking statements. Among these factors
are the following: changes in overall global or regional economic
conditions; changes in demand for our products; changes in
inventories at our customers and distributors; technological and
product development risks, including the risks of failing to
maintain the right to use some technologies or failing to
adequately protect our own intellectual property against
misappropriation or infringement; availability of manufacturing
capacity; the risk of production delays; availability of raw
materials; competitors' actions; loss of key customers, including
but not limited to distributors; the inability to attract and
retain key management and other employees; order cancellations or
reduced bookings; changes in manufacturing yields or output; risks
related to warranty and product liability claims; risks inherent in
doing business internationally; regulatory risks and significant
litigation. These and other risk factors are discussed in the
company's quarterly and annual reports filed with the Securities
and Exchange Commission (SEC) and available at the Investor
Relations section of Fairchild Semiconductor's web site at
investor.fairchildsemi.com or the SEC's web site at www.sec.gov.
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