Fairchild Semiconductor reverses 2Q losses, tops Wall Street forecasts

Thursday, July 15, 2010

Fairchild Semi tops estimates with 2Q profit

SAN JOSE, Calif. — Fairchild Semiconductor International Inc. posted a second-quarter profit Thursday, reversing year-ago losses when companies and consumers held off on upgrading computers and other technology.

The company’s results and its sales forecast for the quarter ending in September topped Wall Street expectations.

Fairchild shares jumped 35 cents, or 3.6 percent, to $10.15 ahead of regular trading.

“We delivered strong sales and earnings growth in the second quarter due to seasonally higher demand across a broad range of our product lines,” CEO Mark Thomson said.

The results reflect the resilience of the technology sector. Fairchild’s chips go into computers, mobile gadgets and communications equipment. This week, chip bellwether Intel Corp. posted its biggest quarterly profit in a decade, thanks largely to rebounding PC sales.

Fairchild booked net income of $43.8 million, or 34 cents per share, for the three months ended in June. That compares with a loss of $24.9 million, or 20 cents per share, from a year ago. Excluding one-time items, the company would have earned 40 cents per share in the most recent quarter.

Revenue climbed 47 percent to $409.6 million.

On average, analysts surveyed by Thomson Reuters expected earnings of 31 cents per share on revenue of $399.3 million.

Looking ahead, Fairchild said it expects third-quarter revenue of between $415 million and $425 million, better than the $411.5 million analysts were looking for.

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