Fairchild Semi sees $43.5M in Q1 profit

Posted April 14, 2011, at 8:56 a.m.
Last modified April 14, 2011, at 3:18 p.m.

Fairchild Semiconductor saw profits of $43.5 million in the first quarter, down slightly from the last quarter but roughly twice as much as the same period a year ago.

The first-quarter profits were on sales of $413 million, the company said Thursday in filings with the Securities and Exchange Commission.

Earlier this year, Fairchild officially switched its headquarters from South Portland to San Jose, Calif., in what the company described as a branding move. The company still employs 800 in Maine, working at its fabrication facility and its corporate offices, both in South Portland. Fairchild has more than 9,000 employees in 27 locations globally.

Fairchild Chairman and CEO Mark Thompson said the company’s sales grew due to strong demand from industrial, automotive, appliance and alternative energy sectors. There was also some modest sales growth due to market share growth in chip sales into mobile sectors, with end products including smart phones, tablets and other consumer applications, Thompson said.

“Our core businesses, which now drive 90 percent of our total sales, are growing well and we expect to continue this trend as we enter what is typically the highest demand quarters of the year,” Thompson said.

Mark Frey, Fairchild’s executive vice president and chief financial officer, said the chip company expects sales in the range of $425 million to $435 million in the second quarter, modestly ahead of analysts’ expectations of $423.6 million.

“Our current scheduled backlog is sufficient to achieve this range,” said Frey.

The company spent $92 million on research and development and sales, general and administration costs, Frey said. Fairchild expects to increase that to $96 million to $98 million as the company increases investments in new product development, Frey said.

According to TheStreet.com, Fairchild stock rose 0.4 percent to $19.25 in premarket trading on the earnings news.

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