Fairchild reports results for Q4 and full year 2010

SAN JOSE, USA: Fairchild Semiconductor, a leading global supplier of high performance power and mobile products, has announced results for the fourth quarter and full year ended December 26, 2010. Fairchild reported fourth quarter sales of $397.7 million, down 4 percent from the prior quarter and 12 percent higher than the fourth quarter of 2009.

Fairchild reported fourth quarter net income of $51.0 million or $0.40 per diluted share compared to $35.8 million or $0.28 per diluted share in the prior quarter and $13.1 million or $0.10 per diluted share in the fourth quarter of 2009. Gross margin was 37.0 percent compared to 36.4 percent in the prior quarter and 29.7 percent in the year ago quarter.

Fairchild reported fourth quarter adjusted gross margin of 37.1 percent, up 60 basis points sequentially and 680 basis points higher than in the fourth quarter of 2009. Adjusted gross margin excludes accelerated depreciation and inventory reserve releases related to fab closures. Adjusted net income was $57.3 million or $0.45 per diluted share, compared to $52.8 million or $0.42 per diluted share in the prior quarter and $29.9 million or $0.23 per diluted share in the fourth quarter of 2009.

Adjusted net income excludes amortization of acquisition-related intangibles, restructuring and impairments, gain associated with debt buyback, net impairment/gain on equity investments, accelerated depreciation and inventory reserve releases related to fab closures, write-off of deferred financing fees, charge for litigation, and associated net tax impact of these items and other acquisition-related intangibles.

Full year revenues for 2010 were $1.6 billion, an increase of 35 percent compared to 2009. Fairchild reported net income of $153 million or $1.20 per diluted share in 2010, compared to a net loss of $60 million or $0.49 per share in 2009. On an adjusted basis, the company reported 2010 net income of $193 million or $1.51 per diluted share, compared to $1 million or $0.01 per diluted share in 2009.