MANHASSET, N.Y. Semiconductor supplier Fairchild Semiconductor International Inc. posted a third quarter loss of $20.8 million, or 17 cents per share on sales of $345.5 million, compared with net earnings of $13.4 million, or 11 cents per share on sales of $409.7 million in the year-ago quarter.
Analysts expected Fairchild (South Portland, Maine) to post a 1-cent per share loss.
Included in the third quarter loss was $4.2 million of restructuring expenses related to employee severance and certain asset impairments. Gross margin was 20.8 percent, 950 basis points lower than the year-ago quarter.
"We've experienced broad-based, seasonally stronger demand from the start of the third quarter," said Mark Thompson, president and chief executive of Fairchild, in a statement. "Order rates have been particularly robust for products supporting the computing and consumer end markets, driving a solid increase in our backlog. Within the computing end market, demand for products in notebook applications has been very strong, driving more than a 20-percent increase in sales in the third quarter over the first half run rate.”
For the fourth quarter, Fairchild expects sales to increase 5 percent sequentially, with gross margin increasing 200 to 300 basis points sequentially.