MANHASSET, N.Y. Semiconductor supplier Fairchild Semiconductor recorded a net loss of $4.7 million, or 4 cents per share on sales of fourth quarter sales of $370.8 million, compared with net earnings of $15.8 million, or 13 cents per share on sales of $379.4 million in the year-ago quarter.
Fairchild (South Portland, Maine) reported gross margin of 24.2 percent, 340 basis points higher sequentially and 140 basis points lower than in the fourth quarter of 2004. The fourth-quarter net loss included $14.5 million of tax expense related to the repatriation of foreign earnings under the American Jobs Creation Act (AJCA) of 2004, $3.4 million to impair plant assets, and $1.3 million in restructuring charges for employee severance.
For 2005, Fairchild posted a net loss of $241.2 million, or $2.01 per share on sales of $1.4 billion, compared with a net loss of $59.2 million, or 48 cents per share on sales of $1.6 billion in 2004.
The company also reduced its capital expenditures during 2005 to $97 million, compared to $190 million in 2004.
For the first quarter of 2005, Fairchild expects sales to increase 5 to 7 percent sequentially, with gross margin slated to improve by 200 to 300 basis points. Capital spending is projected at 6 to 8 percent of sales.