MANHASSET, N.Y. Fairchild Semiconductor reported second quarter 2004 sales of $414.3 million, 19 percent higher than the second quarter of 2003 and a 4 percent increase from the prior quarter.
The South Portland, Maine, semiconductor supplier reported second quarter net income of $17.0 million, compared to a net loss of $63.8 million in the second quarter of 2003 and $13.0 million the prior quarter. Gross margin was 29.3 percent, up 850 basis points from the second quarter of 2003 and 300 basis points sequentially.
"We continued to grow our power business and significantly improve our gross margins," said Kirk Pond, president, chief executive, and chairman of Fairchild, in a statement. "We increased power product sales to $306 million, up 28 percent from a year ago and 5 percent sequentially. Power products represented 74 percent of total sales in the second quarter and their higher margins helped to drive our gross profits and earnings to the highest level in more than three years."
In the second quarter, the company reported strong demand from the automotive, white goods, and handset end markets, driving above average bookings in these areas.
Fairchild projects third quarter revenues to be flat with the second quarter, following normal historical seasonal patterns, though gross margin is expected to increase sequentially as the product mix continues to gravitate toward newer, higher margin products.