Fairchild Semiconductor International Inc. (South Portland, ME) announced results for the first quarter ended March 27, 2005. Fairchild reported first-quarter sales of $362.8 million, a 9% decrease from the first quarter of 2004 and 4% lower than the prior quarter.
Fairchild reported a first-quarter net loss of $10.4 million, or $0.09 per share, compared to net income of $13.0 million, or $0.10 per diluted share, in the first quarter of 2004, and net income of $15.8 million, or $0.13 per diluted share, in the prior quarter. Included in the quarter's results are $23.9 million in expenses associated with calling in 10.5% senior subordinated notes in February; and $4.1 million of restructuring expenses related to employee severance. Gross margin was 23.1%, 320 basis points lower than the first quarter of 2004 and 250 basis points lower sequentially.
Fairchild reported first-quarter pro-forma net income of $12.5 million, or $0.10 per diluted share, compared to pro-forma net income of $21.4 million, or $0.17 per diluted share, in the first quarter of 2004, and $24.8 million, or $0.21 per diluted share, in the prior quarter.
"We increased power products to a record 76% of total sales in the first quarter," said Fairchild President, CEO and Chairman of the Board Kirk Pond. "Since we started the company in 1997, we've grown our power sales from less than $90 million to nearly $1.2 billion in 2004. In the first quarter, our power sales were down less than 3% sequentially, once again highlighting the greater stability of this business. We reached a significant milestone by shipping over one million smart power modules in the first quarter. Fairchild continues to make solid progress focusing our business on the fast-growing power market."
