MANHASSET, N.Y. Fairchild Semiconductor has reiterated guidance for third quarter 2005 sales to be flat and gross margin to flat to slightly higher sequentially.
In its second quarter, Fairchild (South Portland, Maine) posted a net loss of $205.3 million on sales of $346.0 million. The loss included a $195.3 million non-cash charge related to the reserve of deferred tax assets required under financial accounting standards.
"Demand continues to improve as bookings in August were greater than July allowing us to steadily increase our backlog," said Mark Thompson, Fairchild's president and chief executive, in a statement. "We're booking at a run rate ahead of where we were at this same point a quarter ago, driven by broad-based strength across all end markets."
Thompson added that orders in the computing markets have been strong, driven by demand for notebook, server, and storage applications. Consumer market demand has also been strong, paced by products serving DVD, television, games and set-top box applications.