Fairchild Semiconductor Reiterates Guidance for the Fourth Quarter 2006
December 07 2006 - 7:30AM
Business Wire
Fairchild Semiconductor (NYSE:FCS) the leading supplier of high
performance products that optimize power, today reiterated its
previous guidance for fourth quarter 2006 revenue to be flat to up
2% and gross margins to be 50 � 200 basis points lower
sequentially. Fairchild also announced that management has approved
a restructuring plan involving the consolidation and simplification
of certain supply chain planning processes and the streamlining and
transfer of certain information systems support activities. These
transfers will allow for greater operating efficiency as resources
will now be deployed much closer to key Asian business operations.
Direct financial benefits will also result from the move to lower
cost locations. The Company expects to record restructuring charges
of approximately $4 million in the fourth quarter of 2006 and
approximately $0.5 million in the first quarter of 2007 for
severance and asset impairment costs related to these actions which
are expected to generate future cost savings of approximately $3
million per year. Fairchild expects to report its fourth quarter
financial results before the market opens on January 25, 2007.
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 usually, but do not always,
contain forward-looking terminology such as �we believe,� �we
expect,� or �we anticipate,� 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 are 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.
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�, 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.
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