Fairchild Semiconductor (NYSE: FCS) handily topped its underwriters' expectations for its first quarter as a publicly traded company.
In fiscal first quarter results released after market close Tuesday, the South Portland, Maine-based chip maker reported net income of $16 million, or 21 cents per share, not including acquisition-related writedowns and one-time events. Two investment banks -- CS First Boston and BancBoston Robertson Stephens, both underwriters of Fairchild's recent IPO -- had published estimates, producing a consensus forecast of 14 cents a share for the quarter ended Aug. 30, according to Zack's Investment Research.
Including non-recurring items, Fairchild saw a first quarter loss of $8 million, or 15 cents a share.
Revenues for the first quarter -- the first full quarter to include results from the Power Device Products unit acquired from Samsung -- rose to $324.5 million. That was a 35.2 percent gain from the companies' combined revenues of a year earlier, and a 4.3 percent increase from their sales in the fourth quarter.
Analog revenues picked up 36.6 percent year-over-year on a pro forma basis. Discrete revenues increased 41.7 percent over the same period, and logic sales increased 20 percent. Total analog and discrete revenue generated almost 70 percent of the company's first quarter trade revenues.
Markets for communications, mobile PCs, servers and enterprise storage systems generated strong demand, said Kirk Pond, president, chairman and CEO of Fairchild. Asia's economic recovery boosted consumer and industrial business, Pond said.
Fairchild expects sequential revenue growth ranging between 4 and 5 percent. "The industry-wide demand softness and inventory correction we experienced through our fiscal 1999 has ended," Pond said. "We are in the early stages of an industry upturn."
Gross margins rose to 29.4 percent in the first quarter, up from 24.1 percent in the fourth quarter, and up from 20.1 percent in last year's first quarter.>