Fairchild Semiconductor International, South Portland, Me., reported that revenues for the first quarter ended April 1, were $385.3 million, down 18% from the fourth quarter of 2000 and roughly flat from the first quarter of 2000.
First quarter adjusted net income was $26.1 million, 26 cents per diluted share, compared to $52.6 million, or 53 cents per diluted share, in the first quarter of 2000.
However, during the quarter Fairchild incurred a non-recurring charge of $22.3 million primarily for in-process research and development associated with the acquisition of Intersil's Discrete Power Product business, as well as restructuring expenses associated with consolidating a wafer fabrication line in South Portland.
Including amortization of acquisition-related intangibles and non-recurring items, the company reported first quarter net income of $1.6 million, or 2 cents per diluted share, compared to net income of $50.0 million, or 51 cents per diluted share in the first quarter of 2000.
Fairchild's first quarter gross margins were 30.7%, which the company attributed to lower capacity utilization, softer pricing, and product mix changes. Operating margins before non-recurring charges were 10.6%.
"During the quarter, we adjusted our product mix and pricing to drive orders and shipments in industrial and consumer markets that helped offset reduced demand from run rate business in communications and computing segments," said Kirk Pond, chairman, president and chief executive of Fairchild Semiconductor in a released statement.
"While we remain very positive in our long term outlook and competitive position, we remain cautious in our outlook for the next quarter or two," added Joe Martin, executive vice president and chief financial officer of Fairchild. " We expect our total second quarter revenues, which will include a full quarter of sales from our Discrete Power Products acquisition, to be roughly flat to down 5% sequentially."