LONDON – Fairchild Semiconductor, a supplier of analog and mixed-signal and power ICs, has reduced its guidance for third quarter sales significantly saying it has yet to see the normal seasonal increase in sales through distribution channels.
Fairchild now expects sales to be $400 to $410 million compared to previous guidance of $433 to $446 million. The company said it has moved to trim R&D and sales and administrative costs accordingly which it now puts at $96 million compared with a previous guidance of $99 million.
"Distributor sell through of our products has been lower than expected and we are reducing our shipments into the channel accordingly," said Mark Thompson, Fairchild's president and CEO, in a statement.
Thompson said that direct sales to OEM customers would likely record modest sequential sales growth. "In the distribution channel, sell through has yet to show signs of the normal seasonal increase in a number of end markets including computing and consumer. Sell through has also been below expectations for appliances as some Asian customers reduce inventories. As expected, we continue to see weak demand from the solar inverter market as well."