Fairchild Semiconductor International Inc. (FCS) - NASDAQ
  • Nov. 18, 2015, 9:15 AM
    | Nov. 18, 2015, 9:15 AM | 11 Comments
  • Nov. 18, 2015, 7:07 AM
    • All-cash deal values Fairchild (NASDAQ:FCS) at $2.4B.
    • The price is a 41% premium to FCS's Oct.13 price, the day before reports that the company was seeking a buyer.
    • ON says the deal with add to adjusted EPS and free cash-flow ; sees “significant accretion” within a few quarters.
    • Sees $150M in cost savings within 18 months.
    • Plans to fund deal with cash, $2.4B in new debt.
    • The semi industry has seen more than $100B in deals this year.
    • FCS +6.8% premarket to $19.10.
    • Conference call: 8:00 AM.
    • Related: Fairchild Semi: What It's Worth, SanDisk May Be Bought (Oct. 17)
    • Related: 20% Upside In Fairchild Deal (Oct. 15)
    | Nov. 18, 2015, 7:07 AM | 1 Comment
  • Oct. 29, 2015, 3:58 PM
    • On his company's Q3 earnings call, STMicroelectronics (STM -5.7%) CEO Carlo Bozotti denied the French/Italian chipmaker is interested in acquiring analog/power management IC vendor Fairchild Semi (FCS -5.7%). Bloomberg reported on Tuesday STMicro is weighing a bid for Fairchild, two weeks after having reported Infineon and ON Semi have held talks with the company.
    • Both STMicro and Fairchild are down sharply, the former due to its soft Q4 guidance. Many other chip stocks are in the same boat.
    | Oct. 29, 2015, 3:58 PM
  • Oct. 29, 2015, 12:29 PM
    • Down on Monday following Dialog Semi's Q3 report and up yesterday in the wake of Apple's results/guidance, chip stocks are selling off again (SOXX -2.5%) after leading microcontroller vendor NXP (NXPI -18.2%) posted mixed Q3 results and (more importantly) guided for Q4 revenue to be down by a "low to upper-teens" % Q/Q. The Nasdaq is down 0.3%.
    • Also: 1) NXP rival and fellow European chipmaker STMicroelectronics (STM -5.8%) slightly missed Q3 revenue estimates and has guided for Q4 revenue to be down 6% (+/- 3.5%) Q/Q. 2) Network processor vendor Cavium (CAVM -5%) issued light Q4 guidance, while blaming a distribution model change at its biggest data center customer. 3) Microcontroller maker Atmel (ATML -2.4%, set to be acquired by Dialog) missed Q3 revenue estimates and guided for Q4 revenue of $266M-$286M, below a $296.1M consensus.
    • On the bright side, Apple-dependent Cirrus Logic (CRUS -5.7%) beat FQ2 EPS estimates (revenue was in-line) and provided solid FQ3 guidance, and fellow Apple/Samsung supplier InvenSense (INVN +14.3%) beat FQ2 estimates and issued in-line FQ3 guidance. Cirrus is nonetheless selling off; the earnings call (transcript) was generally upbeat, with management talking up FY16/FY17 growth opportunities related to smart codec and boosted amplifier sales.
    • NXP merger partner Freescale (FSL -15.4%) is naturally seeing big losses. Other decliners include RF chipmakers Skyworks (SWKS -3.1%), Avago (AVGO -6%), and Qorvo (QRVO -2.6%), analog/mixed-signal chipmakers Texas Instruments (TXN -3%), ON Semi (ON -5.9%), MagnaChip (MX -6.8%), Fairchild (FCS -4.3%), Maxim (MXIM -3.1%), and IDT (IDTI -5.2%), and smart TV SoC vendor/STMicro rival Sigma Designs (SIGM -3.2%).
    • Like NXP, Cirrus, and InvenSense, Skyworks, Avago, Qorvo, TI, and Fairchild are Apple suppliers. Fairchild and Maxim have recently benefited from M&A reports (I, II).
    • Both NXP and STMicro reported seeing conditions deteriorate as Q3 progressed. NXP added lower-than-expected chip sell-through led to higher channel inventories, and STMicro stated "lower consumer spending in China is impacting the dynamics of the distribution channel in the region and the industry more globally, particularly in automotive." NXP has added 20M shares to its buyback in an attempt to soften the blow.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Oct. 29, 2015, 12:29 PM | 7 Comments
  • Oct. 27, 2015, 11:34 AM
    • Bloomberg reports STMicroelectronics (STM -2.1%) is weighing a bid for U.s-based analog/power management IC vendor Fairchild Semi (FCS +4.8%). Sources caution STMicro might decide against such a move in favor of focusing on bottom-line improvement.
    • Two weeks ago, Fairchild was rumored to be talking with ON Semi and Infineon about potential deals. Yesterday, Bloomberg reported the French and Italian governments want STMicro to cut its dividend in order to have more flexibility to up its R&D spend.
    | Oct. 27, 2015, 11:34 AM | 3 Comments
  • Oct. 15, 2015, 6:30 PM
    • Fairchild (NASDAQ:FCS) missed Q3 revenue estimates (while posting in-line EPS) and guided for Q4 revenue of $320M-$335M vs. a $333.4M consensus. Shares nonetheless added to the big Wednesday gains seen following a Bloomberg report stating the company has held buyout talks with ON Semi and Infineon.
    • Likely helping: Management didn't shoot down the report during Fairchild's earnings call (transcript). Rather, it simply declined to comment when asked.
    • Mobile, enterprise, and telecom equipment-related chip sales were strong in Q3, while Asian industrial, appliance, and consumer electronics-related sales were soft (particularly for China). Mobile sales are expected to rise again Q/Q in Q4 thanks to recent new phone launches (could partly be a reference to the iPhone 6S/6S+); Fairchild adds it "benefited from increasing content for a variety of battery charging, voltage regulation, and signal path solutions on [new phone] models."
    • Q3 results, PR
    | Oct. 15, 2015, 6:30 PM
  • Oct. 15, 2015, 7:34 AM
    • Fairchild Semiconductor (NASDAQ:FCS): Q3 EPS of $0.20 in-line.
    • Revenue of $342.1M (-10.2% Y/Y) misses by $2.53M.
    | Oct. 15, 2015, 7:34 AM
  • Oct. 14, 2015, 5:30 PM
    | Oct. 14, 2015, 5:30 PM | 8 Comments
  • Oct. 14, 2015, 1:06 PM
    • Bloomberg reports Fairchild (FCS +14.6%) has held buyout talks with fellow analog/mixed-signal chipmakers ON Semi (ON +7.5%) and Infineon (OTCQX:IFNNF). Goldman is advising.
    • The report is the latest sign chip industry consolidation remains in full swing in spite of the Nasdaq/SOX's recent selloff. Yesterday, Bloomberg reported SanDisk is talking with Micron and Western Digital about a potential sale.
    | Oct. 14, 2015, 1:06 PM
  • Oct. 1, 2015, 2:01 PM
    • After outperforming yesterday as markets rallied, chip stocks are doing the opposite today amid a selloff. The Philadelphia Semi Index (SOXX -2.1%) is back below $80.
    • Possibly hurting the group: Digitimes reports iPhone chip suppliers are worried Apple could cut its Q4 orders, and that one "major analog IC supplier" has disclosed a slight December order cut. At the same time, Digitimes states suppliers won't know if major order cuts will happen for at leas 1-2 months. iPhone suppliers seeing major losses include NXP (NXPI -4.2%), Avago (AVGO -3.8%), Qorvo (QRVO -4.5%), Cirrus Logic (CRUS -3.1%), Fairchild (FCS -4.9%), and Analog Devices (ADI -3.8%).
    • However, it's worth noting several chipmakers lacking iPhone exposure are also down strongly. The list includes Himax (HIMX -3.5%), PMC-Sierra (PMCS -4.1%), InPhi (IPHI -4.6%), Semtech (SMTC -4.6%), and QuickLogic (QUIK -5.7%). Chip IP provider CEVA (CEVA -3.8%) and specialty foundry TowerJazz (TSEM -5%) are also selling off.
    • Memory giant Micron reports after the bell.
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Oct. 1, 2015, 2:01 PM | 26 Comments
  • Sep. 16, 2015, 10:23 AM
    • Citing a favorable risk/reward following the company's recent selloff and the resetting of estimates, Susquehanna's Chris Caso has upgraded Fairchild (NASDAQ:FCS) to Buy, and hiked his target by $1 to $18.
    • Caso: "We had downgraded the stock a year ago after the company outlined cost reduction initiatives at their analyst day. While those cost reductions are just about to become effective, weaker market conditions have blunted their impact. We turn positive on the stock again with some trepidation, since management's execution has been uneven over the past several years. However, we're encouraged that FCS has taken a trip to the confessional, and we can't ignore the company's valuation, particularly on a cash flow basis."
    • Following Fairchild's recent Q3 warning/job cut announcement, Caso estimates the analog chipmaker sports a 14% forward free cash flow yield. He sees $1.50 of downside $4+ of upside.
    • FBR upgraded Fairchild in July, shortly after shares plunged due to a Q2 miss and soft guidance.
    | Sep. 16, 2015, 10:23 AM
  • Sep. 9, 2015, 12:58 PM
    • Fairchild (FCS +1.8%) now expects Q3 revenue of $340M, below prior guidance of $355M-$375M and a $364.6M consensus. Adjusted gross margin is still expected to be in a 34%-35% range.
    • The analog/power management chipmaker has launched a restructuring meant to cut operating expenses by $30M-$34Myear, and yield $13M in severance expenses. CEO Mark Thompson: "Given the incrementally weaker demand environment, we are taking decisive steps to reduce operating expenses to our target model of 25 percent of sales at the current revenue level. We also completed our manufacturing consolidation on schedule this quarter which we expect will drive substantial cost savings."
    • With Fairchild having plunged in July on account of a Q2 miss and soft guidance, and many peers having also guided light, expectations were already low.
    | Sep. 9, 2015, 12:58 PM | 1 Comment
  • Jul. 17, 2015, 12:27 PM
    • Believing top-line pressures were already priced in going into earnings and noting free cash flow is much stronger than EPS, FBR's Chris Rolland has upgraded Fairchild (NASDAQ:FCS) to Outperform a day after shares fell 10.4% in response to a Q2 miss and soft Q3 guidance. His target has been cut by $2 to $20.
    • Rolland does admit Fairchild's gross margin weakness - adjusted GM fell 20 bps Y/Y in Q2 to 33.2%, and is expected to be at 34%-35% in Q3 - was unexpected. He now predicts margins will peak in the 37% -38% range. At the same time, he forecasts rising iPhone sales and a pickup in Chinese phone demand (under pressure in 1H15) limit downside risk to Q4 expectations.
    | Jul. 17, 2015, 12:27 PM
  • Jul. 16, 2015, 2:45 PM
    • Chip stocks are missing out on a market rally (SOXX -0.2%) after Intel, TSMC, and Fairchild posted Q2 results. The Nasdaq is up 1.1%, and the S&P 0.7%.
    • Intel (down 0.2%) beat estimates - EPS benefited from a low tax rate - offered above-consensus guidance, cut its 2015 capex budget by $1B, and pushed out the ETA for its first 10nm CPUs to 2H17.
    • TSMC (up 0.8%) beat estimates and offered solid Q3 guidance, but also provided cautious industry commentary, and forecast global chip sales will rise only 3% in 2015. A strong dollar, weak PC sales, and slowing emerging markets smartphone growth have been weighing on industry growth.
    • Fairchild (FCS -10.4%) missed estimates and guided for Q3 revenue of $355M-$375M, below a $383.7M consensus. The analog chipmaker blames the Q2 miss on "some mobile and appliance customers, the wireless telecom sector as well as general market distribution."
    • Chip equipment stocks are especially hard-hit thanks to Intel's capex cut/10nm push-out, but various chip developers are also down. Notable decliners include Fairchild peers ON Semi (ON -2.3%), MagnaChip (MX -2.3%), Pericom (PSEM -3.4%), Silicon Labs (SLAB -2.1%), and Intersil (ISIL -2.4%).
    • Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
    | Jul. 16, 2015, 2:45 PM | 3 Comments
  • Jul. 16, 2015, 9:15 AM
    | Jul. 16, 2015, 9:15 AM
  • Jul. 16, 2015, 7:35 AM
    • Fairchild Semiconductor (NASDAQ:FCS): Q2 EPS of $0.12 misses by $0.08.
    • Revenue of $355.2M (-4.4% Y/Y) misses by $16.12M.
    | Jul. 16, 2015, 7:35 AM
Company Description
Fairchild Semiconductor International, Inc. engages in the development of power management solutions. It operates through the following segments: Mobile, Computing, Consumer, and Communication (MCCC), Power Conversion, Industrial, and Automotive (PCIA), and Standard Discrete and Standard Linear... More
Sector: Technology
Industry: Semiconductor - Integrated Circuits
Country: United States