Fairchild Semiconductor International Inc. reported a net loss of $5.4 million, or 5 cents per share on sales of $328.4 million in the third quarter, compared to net earnings of $4.3 million, or 4 cents per share on sales of $360.6 million in the year ago quarter.
The South Portland, Maine semiconductor supplier met its sales guidance and reported a sequential gain in pro-forma income. However, a $6.0 million pretax charge for restructuring announced in July negatively affected results.
On a positive note, Fairchild's growing backlog was encouraging, according to Kirk Pond, president, chief executive, and chairman. "Turns business accelerated as we moved through the third quarter, enabling us to more than double our shipments in September compared to July," said Pond. "We built backlog for fourth-quarter deliveries at a consistently high pace throughout the quarter and entered the fourth quarter with our 13 week backlog at its highest level in over a year. This improved demand visibility allows us to be more selective in taking additional business."
Fairchild continued to see strong growth in its power discrete business, particularly low voltage products, according to Pond. The company also saw strong demand in Asia, where it recently opened an assembly and test facility in Suzhou, China.
The company expects fourth-quarter revenue to increase 6 to 8% sequentially, driven by growth in the power analog and discrete market and regional strength in Asia.