Fairchild Semiconductor Reports Results for the Second Quarter of 2008

Fairchild Semiconductor has 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.

Fairchild Semiconductor