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Fairchild Semiconductor International Inc. (FCS)

  • Thu, Oct. 29, 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.
    | Thu, Oct. 29, 12:29 PM | 8 Comments
  • Thu, Oct. 15, 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
    | Thu, Oct. 15, 6:30 PM | Comment!
  • Thu, Oct. 15, 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.
    • Press Release
    | Thu, Oct. 15, 7:34 AM | Comment!
  • Wed, Oct. 14, 5:30 PM
  • Wed, Sep. 9, 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.
    | Wed, Sep. 9, 12:58 PM | 1 Comment
  • Thu, Jul. 16, 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%).
    | Thu, Jul. 16, 2:45 PM | 3 Comments
  • Thu, Jul. 16, 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.
    • Press Release
    | Thu, Jul. 16, 7:35 AM | Comment!
  • Wed, Jul. 15, 5:30 PM
  • Thu, Apr. 16, 2:49 PM
    • In addition to beating Q1 revenue estimates (while posting in-line EPS), Fairchild's (NASDAQ:FCS) is guiding for Q2 revenue of $360M-$380M vs. a $367.4M consensus. Perhaps more importantly, the analog chipmaker is forecasting adjusted gross margin will rise to 33.5%-34.5% from Q1's 31.6%, thanks to both higher fab utilization and better product mix.
    • Automotive, industrial, and appliance chip sales were strong in Q1, and Fairchild asserts it continued gaining power management chip share in the server/storage/cloud hardware space. Mobile demand is said to have improved throughout Q1 "as key customers began building their new smart phone models."
    • Adjusted GM fell 80 bps Q/Q but rose 130 bps Y/Y. While revenue rose 3% Y/Y, R&D spend only rose 1% to $41.7M and SG&A spend fell 5% to $52.7M. $39M was spent on buybacks.
    • Shares have rallied to fresh 52-week highs.
    • Q1 results, PR
    | Thu, Apr. 16, 2:49 PM | Comment!
  • Thu, Apr. 16, 7:37 AM
    • Fairchild Semiconductor (NASDAQ:FCS): Q1 EPS of $0.11 in-line.
    • Revenue of $355.7M (+3.4% Y/Y) beats by $5.37M.
    • Press Release
    | Thu, Apr. 16, 7:37 AM | Comment!
  • Wed, Apr. 15, 5:30 PM
  • Thu, Jan. 22, 10:35 AM
    • In spite of its Q4 miss, Fairchild (NASDAQ:FCS) is guiding for Q1 revenue of $340M-$360M, in-line with a $352.1M consensus. However, gross margin is expected to fall to 31%-32% from Q4's 32.4%, which itself was down 290 bps Q/Q and 110 bps Y/Y.
    • The analog chipmaker notes 2014 sales (only up 2% from 2013) were hurt by "lower demand across the year from one large customer." On the other hand, it states "incoming order volume increased in December and has accelerated so far in January."
    • It forecasts "seasonally higher [Q1] sales for our products serving the automotive, industrial and appliance end markets offset by normal weakness for consumer-related products." Mobile chip sales are also expected to be up Q/Q.
    • $142M was spent on buybacks in 2014. Opex fell 1% Y/Y in Q4 to $101.1M.
    • Q4 results, PR
    | Thu, Jan. 22, 10:35 AM | Comment!
  • Thu, Jan. 22, 7:34 AM
    • Fairchild Semiconductor (NASDAQ:FCS): Q4 EPS of $0.10 misses by $0.05.
    • Revenue of $336.6M (-1.3% Y/Y) misses by $13.56M.
    • Press Release
    | Thu, Jan. 22, 7:34 AM | Comment!
  • Wed, Jan. 21, 5:30 PM
  • Oct. 31, 2014, 11:31 AM
    • Three weeks after providing a calendar Q3 warning that triggered a massive chip stock rout, Microchip (MCHP +7.3%) has provided Q4 guidance that's in-line with lowered estimates. The microcontroller vendor, which has often seen trends emerge ahead of peers, also said it saw most of its inventory correction in Q3, and expects Q4 sales to be just "slightly below typical seasonal levels."
    • Chip stocks are up strongly (SOXX +4%) on a day the Nasdaq is up 1.4%. Since Microchip's warning, a slew of analog chipmakers and microcontroller firms (e.g. Atmel, Freescale, STMicro, Intersil, Linear) have offered light Q4 guidance, and other firms have reported seeing high-end Android weakness (e.g. Synaptics, Cirrus Logic, Amkor).
    • On the other hand, several mobile chipmakers (Skyworks, RF Micro, TriQuint, Silicon Motion), some of which have decent iPhone exposure, have provided strong results and/or guidance. Other chipmakers, such as Broadcom, Texas Instruments, and Xilinx, have rallied after delivering in-line guidance.
    • Susquehanna's Chris Caso: "By now, we think it’s clear that the weakness MCHP saw in September is not company specific ... The question now is if the full extent of the weakness has been dialed into estimates. If it has, then this would be among the shortest and mildest downturns in many years."
    • Notable gainers: SNDK +3.9%. MU +4.1%. AMAT +3.9%. TXN +4.7%. NXPI +3.9%. NVDA +3.5%. MXIM +4.7%. LLTC +5.1%. FCS +9.6%. FSL +8.8%ADI +6.5%. TQNT +6.8%. RFMD +6.5%. ATML +5.9%. AVGO +5.1%. MRVL +4.7%. AMCC +8.9%. BRCM +3.6%. TSM +4.4%. ARMH +3.3%.
    • Intel (INTC +3.5%) has recovered most of the losses it saw yesterday due to Intesil's (ISIL +3.3%) results and guidance, and related comments about a PC chip inventory correction.
    | Oct. 31, 2014, 11:31 AM | 17 Comments
  • Oct. 16, 2014, 7:31 AM
    • Fairchild Semiconductor (NASDAQ:FCS): Q3 EPS of $0.28 beats by $0.07.
    • Revenue of $381.1M (+4.5% Y/Y) beats by $3.03M.
    • Press Release
    | Oct. 16, 2014, 7:31 AM | Comment!
Company Description
Fairchild Semiconductor International Inc is engaged in developing, manufacturing and selling power analog, power discrete and certain non-power semiconductor solutions to end market customers.