Fairchild Semiconductor (FCS) Reports In-Line Q3 EPS

Fairchild Semiconductor (NASDAQ: FCS) reported Q3 EPS of $0.20, in-line with the analyst estimate of $0.20. Revenue for the quarter came in at $342 million versus the consensus estimate of $344.63 million.

• Demand was higher in mobile, enterprise and telecom markets but weaker than expected for China industrial, appliance and
• consumer markets. Sales into the auto end market were seasonally lower but still on track for solid annual growth
• Completed key milestones on schedule to finish the factory footprint consolidation. Project is under budget and on track to
• deliver significant manufacturing cost savings
• Channel inventory down QoQ to remain at roughly 9 weeks of inventory positioning us well to benefit from any demand increases
• Adjusted gross margin was up 90 bps to 34.1% due to lower manufacturing cost and better product mix. Guided gross margin
• about a point lower at the midpoint for Q4 due to lower factory utilization in Q3 and Q4 as we reduce internal inventory
• OPEX was $88m, down 12% QoQ due to spending controls, seasonal factors and the impact of OPEX expense reduction program
• announced in late Q3. This program is expected to reduce OPEX by $30 ¡V 34 million annually with full impact starting in Q1 2016
• Free cash flow was a -$9m and net cash was $47m
• Repurchased >2m shares reducing share count by 5% from the year ago quarter
• Lead times remain short and supply chain is well positioned to support turns business

Guidance:

Fairchild Semiconductor sees Q4 2015 sales of $320 - $335 million, versus the consensus of $335.50.

For earnings history and earnings-related data on Fairchild Semiconductor (FCS) click here.

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