Fairchild Semiconductor Reiterates Guidance for the First Quarter 2007
March 07 2007 - 7:30AM
Business Wire
Fairchild Semiconductor (NYSE:FCS) the leading supplier of high
performance products that optimize power, today reiterated its
previous guidance for first quarter 2007 revenue to be down 3 to 6
percent and gross margins to be 50�100 basis points lower
sequentially. This guidance does not include the results of
consolidating System General Corporation. On February 5, 2007
Fairchild successfully completed its tender offer for System
General Corporation by acquiring more than 95 percent of the
outstanding shares. Fairchild will consolidate System General�s
financial results for the period after February 5 into its
financial statements beginning in the first quarter of 2007. We
expect the first quarter financial impact of this consolidation of
results, which is incremental to the above stated guidance, to be
in the following ranges: Sales�System General sales for the period
of February 5 to April 1, 2007 are expected to be in the range of
$5.5 to $6.0 million USD. Gross Margin�The gross margin on the
System General revenue is expected to be 46 percent +/- 1 percent
in the first quarter of 2007, which does not include a one-time
accounting transaction related to the purchase of System General�s
inventory. Fairchild expects to report its first quarter 2007
financial results before the market opens on April 19, 2007.
Special Note on Forward Looking Statements: This news release
contains 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:
our ability to successfully satisfy the conditions to completing
the acquisition of System General, including the share swap and
merger following the closing of the tender offer; our ability to
successfully address the challenges associated with integrating the
System General acquisition; our ability to retain and develop
System General's markets, facilities and personnel; 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; changes in tax
regulations or the migration of profits from low tax jurisdictions
to higher tax jurisdictions; regulatory risks and significant
litigation, including a patent infringement lawsuit and U.S.
International Trade Commission proceedings involving System General
and our patent infringement litigation against Power Integrations.
These lawsuits 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.
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.
Fairchild's 9,000 employees design, manufacture and market power,
analog and mixed signal, interface, logic, and optoelectronics
products. Please contact us on the web at www.fairchildsemi.com.
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