Our first look at the Q3 results from FCS. They look good, especially the forward look in the last paragraph.
Jeff, why do you waste your time with the eighthmanstanding? The guy is so far out to lunch on this stock thing, it isn't even funny. I say he is one of the old line that is going to or has already lost his job.
Company Press Release
Fairchild Semiconductor Reports Record Revenues and Operating Profits
Revenues Up in All Major Product Segments
SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Sept. 21, 1999--Fairchild Semiconductor (NYSE:FCS - news) today reported first quarter ended August 30, 1999 revenues of $324.5 million, a 114 percent increase over the $151.3 million reported in the first quarter of fiscal 1999.
First quarter results include the first full quarter of operations of the Power Device Products Group, acquired from Samsung Electronics in April 1999. Revenues were up 28.8 percent sequentially from the fourth quarter of fiscal 1999, with strong customer demand prevailing through the summer quarter. Company gross margins improved to 29.4 percent up from 24.1 percent in the fourth quarter of fiscal 1999, and up from 20.1 percent in the first quarter of fiscal 1999.
Revenues were up 4.3 percent over pro forma fourth quarter fiscal year 1999 revenues, which includes the Company's unaudited estimated revenues for the Power Device Products Group, and up 35.2 percent from pro forma first quarter fiscal year 1999 revenues.
Adjusted net income, which is net income before amortization of acquisition-related intangibles and one-time charges, was $16.0 million in the first quarter compared to an adjusted net loss of $12.0 million in the first quarter of fiscal year 1999. During the quarter, the Company incurred initial public offering (IPO) related one-time charges of $15.5 million. Excluding preferred dividends, which will not reoccur following this quarter, adjusted net income equaled $0.21 per fully diluted share of common stock.
Including these one time charges, the Company reported a loss of $8.0 million, or $0.15 per fully diluted share of common stock.
Fairchild Semiconductor completed its initial public stock offering on August 4, 1999. The $370 million raised in the IPO, net of fees, was used to retire debt. As previously announced, Fairchild Semiconductor will convert to a calendar fiscal year commencing December 27, 1999. Results for the 7-month transition period from May 31, 1999 to December 26, 1999, which the Company refers to as ``stub year 1999,' will also be reported for the three months ending November 28, 1999, and the seven months ending December 26, 1999.
``We are extremely pleased to report such strong results in our first quarter as a publicly traded company,' said Kirk Pond, chairman, president and chief executive officer of Fairchild Semiconductor. ``We had record bookings and billings, achieved sequential revenue growth, improved our operating margins, and strengthened our backlog.'
Revenues improved in all major product segments. Company-wide analog revenues, including the analog portion of Power Device Group, were up 36.6 percent over pro forma first quarter fiscal year 1999. Company-wide discrete revenues, including the discrete portion of Power Device Products, increased 41.7 percent over pro forma first quarter fiscal year 1999. Logic sales increased 20 percent over first quarter fiscal year 1999. Total analog and discrete revenue were almost 70 percent of the company's first quarter trade revenues.
``We continue to benefit from strong end market sales in wireless and wired communications, mobile PCs, internet servers and enterprise storage demand,' said Pond. ``At the same time, the regional upturns in Asia and Korea have strengthened the consumer and industrial segments, increasing demand for our Power Device products. The acquisitions we have made in the past two years, coupled with the increases in R&D and capital spending we have made, have positioned us to continue to grow in all of the multi-markets we serve.
``We currently believe, based on the strength of current incoming orders and our current backlog, that 4-5 percent sequential trade revenue growth in the second quarter appears realistic,' said Pond. ``While we expect to continue to operate in a very competitive market environment for many of our multiple-sourced products, we do believe that the industry-wide demand softness and inventory correction we experienced through our fiscal 1999 has ended, and that we are in the early stages of an industry upturn.' |
