Fairchild Semiconductor (NYSE: FCS), a leading global supplier of
high performance products that enable energy-efficiency, today
announced results for the second quarter ended June 29, 2008.
Fairchild reported second quarter sales of $418.7 million, up 3
percent from the prior quarter and 2 percent higher than the second
quarter of 2007. Fairchild reported second quarter net income of
$6.9 million or $0.05 per diluted share compared to net income of
$17.1 million or $0.14 per diluted share in the prior quarter and
net income of $3.4 million or $0.03 per diluted share in the second
quarter of 2007. Included in these results is an $11.3 million
charge related to asset impairments and restructuring actions to
streamline the company's cost structure and a discrete $1.7 million
net tax benefit. Gross margin was 28.6 percent, 160 basis points
lower sequentially and 60 basis points higher than in the second
quarter of 2007. Fairchild reported second quarter adjusted net
income of $21.5 million or $0.17 per diluted share, compared to
adjusted net income of $23.2 million or $0.19 per diluted share in
the prior quarter and adjusted net income of $17.7 million or $0.14
per diluted share in the second quarter of 2007. Adjusted net
income excludes amortization of acquisition-related intangibles,
restructuring and impairments, purchased in-process research and
development, reserves for potential litigation outcomes, System
General purchase accounting charges, costs associated with the
redemption of convertible debt, associated net tax benefits of
these items and other acquisition-related intangibles and tax
benefits from finalized tax filings and positions. "Our second
quarter sales were at the high end of our expectations," said Mark
Thompson, Fairchild's president and CEO. "Orders for the second
half were also strong and we enter the third quarter with a very
healthy level of backlog. We benefited from record sales of our
Smart Power Modules into the appliance end market, high frequency
voltage regulators for handset applications and our new logic
translators. We expect to accelerate new product sales in the
second half of 2008 as more design wins ramp into production." End
Markets and Channel Activity "End market demand was consistently
strong during the quarter," said Thompson. "Our highest order rates
for the quarter were for our products supporting the computing,
handset and power supply end markets. Our sales into the OEM
channel were up 18 percent from a year ago, driven primarily by new
product sales and we expect this trend to continue in the second
half of 2008. Distributor sell-through increased more than 3
percent from the prior quarter which resulted in nearly a one week
reduction in channel inventory. Overall product pricing was down
between 1 to 2 percent sequentially and within our normal range. We
maintained lead times within a stable range of 7 to 8 weeks during
the quarter." Second Quarter Financials "We posted strong sales
growth even as we reduced both channel and internal inventories,"
said Mark Frey, Fairchild's executive vice president and CFO. "We
reduced internal inventory nearly $9 million sequentially as sales
growth outpaced our factory loadings. Gross margin was 28.6 percent
which was impacted by the greater-than-expected inventory reduction
as well as higher energy related expenses. R&D and SG&A
expenses were slightly better than expected due to continued cost
discipline. Cash and marketable securities decreased $28.8 million
to $436.3 million in the second quarter which reflected cash flow
from operations of $83.4 million, capital spending of $57.9 million
and the use of $50 million to reduce overall debt. During the
quarter we successfully refinanced our $200 million in convertible
debt by borrowing an additional $150 million under our existing
senior credit facility and using $50 million in cash." Third
Quarter Guidance "We expect third quarter revenue to be up 2 to 5
percent," said Frey. "At the start of the quarter, we had more than
90 percent of this sales guidance booked and scheduled to ship. We
expect gross margin to increase 150 to 225 basis points
sequentially as we benefit from higher factory loadings, better
product mix and more assembly and test in-sourcing. We expect
R&D and SG&A expenses to be approximately $89 to $92
million and net interest and other expenses to be about $5.5
million for the third quarter." This press release includes
references to adjusted net income (which excludes amortization of
acquisition-related intangibles, restructuring and impairments,
purchased in-process research and development, reserves for
potential litigation outcomes, System General purchase accounting
charges, costs associated with the redemption of convertible debt,
associated net tax benefits of these items and other
acquisition-related intangibles, and tax benefits from finalized
tax filings and positions), statements of operations prepared in
accordance with generally accepted accounting principles (GAAP)
(which include these items), and a reconciliation from adjusted net
income to GAAP net income and adjusted gross margin to GAAP gross
margin. GAAP and adjusted results both include equity based
compensation expense. Adjusted results are not meant as a
substitute for GAAP, but are included solely for informational and
comparative purposes. Fairchild presents adjusted results because
its management uses them as additional measures of the company's
operating performance, and management believes adjusted financial
information is useful to investors because it illuminates
underlying operational trends by excluding significant
non-recurring, non-cash or otherwise unusual transactions.
Fairchild's criteria for determining adjusted results may differ
from methods used by other companies, and should not be regarded as
a replacement for corresponding GAAP measures. 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 involve risk and uncertainty.
Other forward-looking statements may also be found in this news
release. 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 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 at competitive prices;
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. 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 a global leader delivering
energy-efficient power analog and power discrete solutions.
Fairchild is The Power Franchise(R), providing leading-edge silicon
and packaging technologies, manufacturing strength and system
expertise for consumer, communications, industrial, portable,
computing and automotive systems. An application-driven,
solution-based semiconductor supplier, Fairchild provides online
design tools and design centers worldwide as part of its
comprehensive Global Power Resource(SM). Please contact us on the
web at www.fairchildsemi.com. -0- *T Fairchild Semiconductor
International, Inc. Consolidated Statements of Operations (In
millions, except per share amounts) (Unaudited) Three Months Ended
Six Months Ended -------------------------- ---------------- June
29, March 30, July 1, June 29, July 1, 2008 2008 2007 2008 2007
-------- --------- ------- -------- ------- Total revenue $418.7
$406.3 $408.9 $825.0 $811.5 Cost of sales (1) 299.1 283.8 294.3
582.9 585.4 -------- --------- ------- -------- ------- Gross
margin 119.6 122.5 114.6 242.1 226.1 -------- --------- -------
-------- ------- Gross margin % 28.6% 30.2% 28.0% 29.3% 27.9%
Operating expenses: Research and development (2) 30.3 29.8 28.6
60.1 55.5 Selling, general and administrative (3) 58.6 60.1 60.5
118.7 117.7 Amortization of acquisition-related intangibles 5.5 5.6
5.6 11.1 12.4 Restructuring and impairments 11.3 0.2 5.5 11.5 6.1
Purchased in-process research and development - - - - 3.7 Charge
for potential litigation outcomes, net - - 1.7 - 1.7 --------
--------- ------- -------- ------- Total operating expenses 105.7
95.7 101.9 201.4 197.1 -------- --------- ------- -------- -------
Operating income 13.9 26.8 12.7 40.7 29.0 Other expense, net 6.3
5.2 5.5 11.5 10.2 -------- --------- ------- -------- -------
Income before income taxes 7.6 21.6 7.2 29.2 18.8 Provision for
income taxes 0.7 4.5 3.8 5.2 9.1 -------- --------- -------
-------- ------- Net income $ 6.9 $ 17.1 $ 3.4 $ 24.0 $ 9.7
======== ========= ======= ======== ======= Net income per common
share: Basic $ 0.06 $ 0.14 $ 0.03 $ 0.19 $ 0.08 ======== =========
======= ======== ======= Diluted $ 0.05 $ 0.14 $ 0.03 $ 0.19 $ 0.08
======== ========= ======= ======== ======= Weighted average common
shares: Basic 124.9 124.4 123.9 124.7 123.6 ======== =========
======= ======== ======= Diluted 125.8 125.1 126.3 125.4 126.2
======== ========= ======= ======== ======= (1) Equity compensation
expense included in cost of sales $ 1.3 $ 1.0 $ 1.3 $ 2.3 $ 3.0 (2)
Equity compensation expense included in research and development $
1.3 $ 0.9 $ 1.1 $ 2.2 $ 2.0 (3) Equity compensation expense
included in selling, general and administrative $ 3.3 $ 5.0 $ 4.4 $
8.3 $ 7.9 *T -0- *T Fairchild Semiconductor International, Inc.
Reconciliation of Net Income To Adjusted Net Income (In millions)
(Unaudited) Three Months Ended Six Months Ended
-------------------------- ---------------- June 29, March 30, July
1, June 29, July 1, 2008 2008 2007 2008 2007 -------- ---------
------- -------- ------- Net income $ 6.9 $ 17.1 $ 3.4 $24.0 $ 9.7
Adjustments to reconcile net income to adjusted net income:
Restructuring and impairments 11.3 0.2 5.5 11.5 6.1 Purchased
in-process research and development - - - - 3.7 Charge for
potential litigation outcomes, net - - 1.7 - 1.7 System General
purchase accounting charges - - 1.6 - 3.7 Costs associated with the
redemption of convertible debt 0.4 - - 0.4 - Amortization of
acquisition-related intangibles 5.5 5.6 5.6 11.1 12.4 Associated
tax effects of the above and other acquisition intangibles (0.1)
0.3 (0.1) 0.2 (0.4) Tax benefits from finalized tax filings and
positions (2.5) - - (2.5) 0.9 -------- --------- ------- --------
------- Adjusted net income $ 21.5 $ 23.2 $17.7 $44.7 $37.8
======== ========= ======= ======== ======= Adjusted net income per
common share: Basic $ 0.17 $ 0.19 $0.14 $0.36 $0.31 ========
========= ======= ======== ======= Diluted $ 0.17 $ 0.19 $0.14
$0.36 $0.30 ======== ========= ======= ======== ======= *T -0- *T
Fairchild Semiconductor International, Inc. Reconciliation of Gross
Margin To Adjusted Gross Margin (In millions) (Unaudited) Three
Months Ended Six Months Ended --------------------------
---------------- June 29, March 30, July 1, June 29, July 1, 2008
2008 2007 2008 2007 -------- --------- ------- -------- -------
Gross margin $119.6 $122.5 $114.6 $242.1 $226.1 Adjustments to
reconcile gross margin to adjusted gross margin: System General
purchase accounting charges - - 1.6 - 3.7 -------- ---------
------- -------- ------- Adjusted gross margin $119.6 $122.5 $116.2
$242.1 $229.8 ======== ========= ======= ======== ======= Adjusted
gross margin % 28.6% 30.2% 28.4% 29.3% 28.3% Adjusted net income,
adjusted net income per share, and adjusted gross margin should not
be considered as alternatives to net income, net income per share,
gross margin or other measures of consolidated operations and cash
flow data prepared in accordance with accounting principles
generally accepted in the United States of America, as indicators
of our operating performance, or as alternatives to cash flow as a
measure of liquidity. *T -0- *T Fairchild Semiconductor
International, Inc. Consolidated Balance Sheets (In millions)
(Unaudited) June 29, March 30, December 30, 2008 2008 2007 --------
--------- ------------ ASSETS Current assets: Cash and cash
equivalents $ 390.8 $ 417.0 $ 409.0 Short-term marketable
securities 0.9 0.9 2.1 Receivables, net 186.3 190.8 179.0
Inventories 240.7 249.3 243.5 Other current assets 37.9 40.0 51.9
-------- --------- ------------ Total current assets 856.6 898.0
885.5 Property, plant and equipment, net 701.9 679.1 676.0
Intangible assets, net 112.6 118.1 123.7 Goodwill 365.0 365.0 353.2
Long-term marketable securities 44.6 47.2 51.0 Other assets 39.9
39.7 43.2 -------- --------- ------------ Total assets $2,120.6
$2,147.1 $2,132.6 ======== ========= ============ LIABILITIES,
TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities:
Current portion of long-term debt $ 5.3 $ 203.7 $ 203.7 Accounts
payable 146.2 127.2 130.6 Accrued expenses and other current
liabilities 96.9 104.8 110.5 -------- --------- ------------ Total
current liabilities 248.4 435.7 444.8 Long-term debt, less current
portion 532.5 385.0 385.9 Other liabilities 87.5 90.8 80.2 Minority
Interest - - - -------- --------- ------------ Total liabilities
868.4 911.5 910.9 Temporary equity - deferred stock units 3.2 3.7
3.2 Total stockholders' equity 1,249.0 1,231.9 1,218.5 --------
--------- ------------ Total liabilities, temporary equity and
stockholders' equity $2,120.6 $2,147.1 $2,132.6 ======== =========
============ *T -0- *T Fairchild Semiconductor International, Inc.
Condensed Consolidated Statements of Cash Flows (In millions)
(Unaudited) Three Months Ended Six Months Ended ------------------
------------------- June 29, June 29, July 1, 2008 2008 2007
------------------ -------- -------- Cash flows from operating
activities: Net income $ 6.9 $ 24.0 $ 9.7 Adjustments to reconcile
net income to cash provided by operating activities: Depreciation
and amortization 33.0 66.1 63.3 Non-cash stock-based compensation
expense 5.9 12.8 12.9 Non-cash restructuring and impairments
expense 8.0 8.0 2.4 Purchased in-process research & development
- - 3.7 Deferred income taxes, net (0.7) 0.7 (2.1) Other 1.1 1.5
1.1 Changes in operating assets and liabilities, net of
acquisitions 29.2 8.7 (17.5) ------------------ -------- --------
Cash provided by operating activities 83.4 121.8 73.5
------------------ -------- -------- Cash flows from investing
activities: Capital expenditures (57.9) (88.6) (50.7) Purchase of
marketable securities - (3.5) (137.5) Sale of marketable securities
- 5.0 124.8 Maturity of marketable securities - 0.1 0.1 Other (0.7)
(1.0) (1.0) Acquisitions and divestitures, net of cash acquired - -
(171.2) ------------------ -------- -------- Cash used in investing
activities (58.6) (88.0) (235.5) ------------------ --------
-------- Cash flows from financing activities: Repayment of
long-term debt (201.0) (201.9) (1.9) Issuance of long-term debt
150.0 150.0 - Proceeds from issuance of common stock and from
exercise of stock options, net 3.3 5.2 23.2 Other (3.3) (5.3)
(11.7) ------------------ -------- -------- Cash provided by (used
in) financing activities (51.0) (52.0) 9.6 ------------------
-------- -------- Net change in cash and cash equivalents (26.2)
(18.2) (152.4) Cash and cash equivalents at beginning of period
417.0 409.0 525.2 ------------------ -------- -------- Cash and
cash equivalents at end of period $ 390.8 $ 390.8 $ 372.8
================== ======== ======== *T Fairchild Semiconductor
(NYSE: FCS), a leading global supplier of high performance products
that enable energy-efficiency, today announced results for the
second quarter ended June 29, 2008. Fairchild reported second
quarter sales of $418.7 million, up 3 percent from the prior
quarter and 2 percent higher than the second quarter of 2007.
Fairchild reported second quarter net income of $6.9 million or
$0.05 per diluted share compared to net income of $17.1 million or
$0.14 per diluted share in the prior quarter and net income of $3.4
million or $0.03 per diluted share in the second quarter of 2007.
Included in these results is an $11.3 million charge related to
asset impairments and restructuring actions to streamline the
company�s cost structure and a discrete $1.7 million net tax
benefit. Gross margin was 28.6 percent, 160 basis points lower
sequentially and 60 basis points higher than in the second quarter
of 2007. Fairchild reported second quarter adjusted net income of
$21.5 million or $0.17 per diluted share, compared to adjusted net
income of $23.2 million or $0.19 per diluted share in the prior
quarter and adjusted net income of $17.7 million or $0.14 per
diluted share in the second quarter of 2007. Adjusted net income
excludes amortization of acquisition-related intangibles,
restructuring and impairments, purchased in-process research and
development, reserves for potential litigation outcomes, System
General purchase accounting charges, costs associated with the
redemption of convertible debt, associated net tax benefits of
these items and other acquisition-related intangibles and tax
benefits from finalized tax filings and positions. �Our second
quarter sales were at the high end of our expectations,� said Mark
Thompson, Fairchild�s president and CEO. �Orders for the second
half were also strong and we enter the third quarter with a very
healthy level of backlog. We benefited from record sales of our
Smart Power Modules into the appliance end market, high frequency
voltage regulators for handset applications and our new logic
translators. We expect to accelerate new product sales in the
second half of 2008 as more design wins ramp into production.� End
Markets and Channel Activity �End market demand was consistently
strong during the quarter,� said Thompson. �Our highest order rates
for the quarter were for our products supporting the computing,
handset and power supply end markets. Our sales into the OEM
channel were up 18 percent from a year ago, driven primarily by new
product sales and we expect this trend to continue in the second
half of 2008. Distributor sell-through increased more than 3
percent from the prior quarter which resulted in nearly a one week
reduction in channel inventory. Overall product pricing was down
between 1 to 2 percent sequentially and within our normal range. We
maintained lead times within a stable range of 7 to 8 weeks during
the quarter.� Second Quarter Financials �We posted strong sales
growth even as we reduced both channel and internal inventories,�
said Mark Frey, Fairchild�s executive vice president and CFO. �We
reduced internal inventory nearly $9 million sequentially as sales
growth outpaced our factory loadings. Gross margin was 28.6 percent
which was impacted by the greater-than-expected inventory reduction
as well as higher energy related expenses. R&D and SG&A
expenses were slightly better than expected due to continued cost
discipline. Cash and marketable securities decreased $28.8 million
to $436.3 million in the second quarter which reflected cash flow
from operations of $83.4 million, capital spending of $57.9 million
and the use of $50 million to reduce overall debt. During the
quarter we successfully refinanced our $200 million in convertible
debt by borrowing an additional $150 million under our existing
senior credit facility and using $50 million in cash.� Third
Quarter Guidance �We expect third quarter revenue to be up 2 to 5
percent,� said Frey. �At the start of the quarter, we had more than
90 percent of this sales guidance booked and scheduled to ship. We
expect gross margin to increase 150 to 225 basis points
sequentially as we benefit from higher factory loadings, better
product mix and more assembly and test in-sourcing. We expect
R&D and SG&A expenses to be approximately $89 to $92
million and net interest and other expenses to be about $5.5
million for the third quarter.� This press release includes
references to adjusted net income (which excludes amortization of
acquisition-related intangibles, restructuring and impairments,
purchased in-process research and development, reserves for
potential litigation outcomes, System General purchase accounting
charges, costs associated with the redemption of convertible debt,
associated net tax benefits of these items and other
acquisition-related intangibles, and tax benefits from finalized
tax filings and positions), statements of operations prepared in
accordance with generally accepted accounting principles (GAAP)
(which include these items), and a reconciliation from adjusted net
income to GAAP net income and adjusted gross margin to GAAP gross
margin. GAAP and adjusted results both include equity based
compensation expense. Adjusted results are not meant as a
substitute for GAAP, but are included solely for informational and
comparative purposes. Fairchild presents adjusted results because
its management uses them as additional measures of the company�s
operating performance, and management believes adjusted financial
information is useful to investors because it illuminates
underlying operational trends by excluding significant
non-recurring, non-cash or otherwise unusual transactions.
Fairchild�s criteria for determining adjusted results may differ
from methods used by other companies, and should not be regarded as
a replacement for corresponding GAAP measures. 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 involve risk and uncertainty.
Other forward-looking statements may also be found in this news
release. 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 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 at competitive prices;
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. 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 a global leader delivering
energy-efficient power analog and power discrete solutions.
Fairchild is The Power Franchise�, providing leading-edge silicon
and packaging technologies, manufacturing strength and system
expertise for consumer, communications, industrial, portable,
computing and automotive systems. An application-driven,
solution-based semiconductor supplier, Fairchild provides online
design tools and design centers worldwide as part of its
comprehensive Global Power ResourceSM. Please contact us on the web
at www.fairchildsemi.com. Fairchild Semiconductor International,
Inc. Consolidated Statements of Operations (In millions, except per
share amounts) (Unaudited) � � � � � Three Months Ended Six Months
Ended June 29, March 30, July 1, June 29, July 1, � 2008 � � 2008 �
� 2007 � � 2008 � � 2007 � � Total revenue $ 418.7 $ 406.3 $ 408.9
$ 825.0 $ 811.5 Cost of sales (1) � 299.1 � � 283.8 � � 294.3 � �
582.9 � � 585.4 � Gross margin � 119.6 � � 122.5 � � 114.6 � �
242.1 � � 226.1 � Gross margin % 28.6 % 30.2 % 28.0 % 29.3 % 27.9 %
� Operating expenses: Research and development (2) 30.3 29.8 28.6
60.1 55.5 Selling, general and administrative (3) 58.6 60.1 60.5
118.7 117.7 Amortization of acquisition-related intangibles 5.5 5.6
5.6 11.1 12.4 Restructuring and impairments 11.3 0.2 5.5 11.5 6.1
Purchased in-process research and development - - - - 3.7 Charge
for potential litigation outcomes, net � - � � - � � 1.7 � � - � �
1.7 � Total operating expenses � 105.7 � � 95.7 � � 101.9 � � 201.4
� � 197.1 � � Operating income 13.9 26.8 12.7 40.7 29.0 Other
expense, net � 6.3 � � 5.2 � � 5.5 � � 11.5 � � 10.2 � Income
before income taxes 7.6 21.6 7.2 29.2 18.8 � Provision for income
taxes � 0.7 � � 4.5 � � 3.8 � � 5.2 � � 9.1 � Net income $ 6.9 � $
17.1 � $ 3.4 � $ 24.0 � $ 9.7 � � Net income per common share:
Basic $ 0.06 � $ 0.14 � $ 0.03 � $ 0.19 � $ 0.08 � Diluted $ 0.05 �
$ 0.14 � $ 0.03 � $ 0.19 � $ 0.08 � Weighted average common shares:
Basic � 124.9 � � 124.4 � � 123.9 � � 124.7 � � 123.6 � Diluted �
125.8 � � 125.1 � � 126.3 � � 125.4 � � 126.2 � � � (1) Equity
compensation expense included in cost of sales $ 1.3 $ 1.0 $ 1.3 $
2.3 $ 3.0 (2) Equity compensation expense included in research and
development $ 1.3 $ 0.9 $ 1.1 $ 2.2 $ 2.0 (3) Equity compensation
expense included in selling, general and administrative $ 3.3 $ 5.0
$ 4.4 $ 8.3 $ 7.9 � � � � � Fairchild Semiconductor International,
Inc. Reconciliation of Net Income To Adjusted Net Income (In
millions) (Unaudited) � Three Months Ended Six Months Ended June
29, March 30, July 1, June 29, July 1, � 2008 � � 2008 � 2007 � �
2008 � � 2007 � � � Net income $ 6.9 $ 17.1 $ 3.4 $ 24.0 $ 9.7
Adjustments to reconcile net incometo adjusted net income: �
Restructuring and impairments 11.3 0.2 5.5 11.5 6.1 Purchased
in-process research and development - - - - 3.7 Charge for
potential litigation outcomes, net - - 1.7 - 1.7 System General
purchase accounting charges - - 1.6 - 3.7 Costs associated with the
redemption of convertible debt 0.4 - - 0.4 - Amortization of
acquisition-related intangibles 5.5 5.6 5.6 11.1 12.4 Associated
tax effects of the above and other acquisition intangibles (0.1 )
0.3 (0.1 ) 0.2 (0.4 ) Tax benefits from finalized tax filings and
positions � (2.5 ) � - � - � � (2.5 ) � 0.9 � Adjusted net income $
21.5 � $ 23.2 $ 17.7 � $ 44.7 � $ 37.8 � � Adjusted net income per
common share: Basic $ 0.17 � $ 0.19 $ 0.14 � $ 0.36 � $ 0.31 �
Diluted $ 0.17 � $ 0.19 $ 0.14 � $ 0.36 � $ 0.30 � Fairchild
Semiconductor International, Inc. Reconciliation of Gross Margin To
Adjusted Gross Margin (In millions) (Unaudited) � � � � � � Three
Months Ended Six Months Ended June 29, March 30, July 1, June 29,
July 1, � 2008 � � 2008 � � 2007 � � 2008 � � 2007 � � � Gross
margin $ 119.6 $ 122.5 $ 114.6 $ 242.1 $ 226.1 Adjustments to
reconcile gross margin to adjusted gross margin: � System General
purchase accounting charges � - � � - � � 1.6 � � - � � 3.7 �
Adjusted gross margin $ 119.6 � $ 122.5 � $ 116.2 � $ 242.1 � $
229.8 � � Adjusted gross margin % 28.6 % 30.2 % 28.4 % 29.3 % 28.3
% � Adjusted net income, adjusted net income per share, and
adjusted gross margin should not be considered as alternatives to
net income, net income per share, gross margin or other measures of
consolidated operations and cash flow data prepared in accordance
with accounting principles generally accepted in the United States
of America, as indicators of our operating performance, or as
alternatives to cash flow as a measure of liquidity. Fairchild
Semiconductor International, Inc. Consolidated Balance Sheets (In
millions) (Unaudited) � � � � � � June 29, March 30, December 30, �
2008 � 2008 � 2007 � ASSETS Current assets: Cash and cash
equivalents $ 390.8 $ 417.0 $ 409.0 Short-term marketable
securities 0.9 0.9 2.1 Receivables, net 186.3 190.8 179.0
Inventories 240.7 249.3 243.5 Other current assets � 37.9 � 40.0 �
51.9 Total current assets 856.6 898.0 885.5 � Property, plant and
equipment, net 701.9 679.1 676.0 Intangible assets, net 112.6 118.1
123.7 Goodwill 365.0 365.0 353.2 Long-term marketable securities
44.6 47.2 51.0 Other assets � 39.9 � 39.7 � 43.2 Total assets $
2,120.6 $ 2,147.1 $ 2,132.6 � LIABILITIES, TEMPORARY EQUITY AND
STOCKHOLDERS' EQUITY Current liabilities: Current portion of
long-term debt $ 5.3 $ 203.7 $ 203.7 Accounts payable 146.2 127.2
130.6 Accrued expenses and other current liabilities � 96.9 � 104.8
� 110.5 Total current liabilities 248.4 435.7 444.8 � Long-term
debt, less current portion 532.5 385.0 385.9 Other liabilities 87.5
90.8 80.2 Minority Interest � - � - � - Total liabilities 868.4
911.5 910.9 � Temporary equity - deferred stock units 3.2 3.7 3.2
Total stockholders' equity � 1,249.0 � 1,231.9 � 1,218.5 Total
liabilities, temporary equity and stockholders' equity $ 2,120.6 $
2,147.1 $ 2,132.6 Fairchild Semiconductor International, Inc.
Condensed Consolidated Statements of Cash Flows (In millions)
(Unaudited) � � � � � � Three Months Ended � Six Months Ended June
29, June 29, July 1, � 2008 � � 2008 � � 2007 � Cash flows from
operating activities: Net income $ 6.9 $ 24.0 $ 9.7 Adjustments to
reconcile net income to cash provided by operating activities: �
Depreciation and amortization 33.0 66.1 63.3 Non-cash stock-based
compensation expense 5.9 12.8 12.9 Non-cash restructuring and
impairments expense 8.0 8.0 2.4 Purchased in-process research &
development - - 3.7 Deferred income taxes, net (0.7 ) 0.7 (2.1 )
Other 1.1 1.5 1.1 Changes in operating assets and liabilities,net
of acquisitions � 29.2 � � 8.7 � � (17.5 ) Cash provided by
operating activities � 83.4 � � 121.8 � � 73.5 � � Cash flows from
investing activities: Capital expenditures (57.9 ) (88.6 ) (50.7 )
Purchase of marketable securities - (3.5 ) (137.5 ) Sale of
marketable securities - 5.0 124.8 Maturity of marketable securities
- 0.1 0.1 Other (0.7 ) (1.0 ) (1.0 ) Acquisitions and divestitures,
net of cash acquired � - � � - � � (171.2 ) Cash used in investing
activities � (58.6 ) � (88.0 ) � (235.5 ) � Cash flows from
financing activities: Repayment of long-term debt (201.0 ) (201.9 )
(1.9 ) Issuance of long-term debt 150.0 150.0 - Proceeds from
issuance of common stock and from exercise of stock options, net
3.3 5.2 23.2 Other � (3.3 ) � (5.3 ) � (11.7 ) Cash provided by
(used in) financing activities � (51.0 ) � (52.0 ) � 9.6 � � Net
change in cash and cash equivalents (26.2 ) (18.2 ) (152.4 ) Cash
and cash equivalents at beginning of period � 417.0 � � 409.0 � �
525.2 � Cash and cash equivalents at end of period $ 390.8 � $
390.8 � $ 372.8 �
Fairchild Semiconductor (NASDAQ:FCS)
Historical Stock Chart
From Sep 2024 to Oct 2024
Fairchild Semiconductor (NASDAQ:FCS)
Historical Stock Chart
From Oct 2023 to Oct 2024