SAN JOSE, Calif. (AP) — Chip maker Fairchild Semiconductor International Inc. on Tuesday cut its forecast for this quarter’s sales, saying the usual seasonal sales increase has failed to materialize. Its shares tumbled more than 5 percent in early trading.
The San Jose, Calif.-based company said it now expects sales of $400 million to $410 million for the third quarter, down from a previous estimate of $433 million to $446 million. Analysts polled by FactSet were expecting $438 million.
Fairchild chips go into computers, mobile gadgets and communications equipment. Power-regulation chips are a specialty.
The computer chip manufacturer has more than 9,000 employees in 27 locations globally. There are 800 in Maine, working at its fabrication facility and its corporate offices, both in South Portland. The company is registered in Delaware, and in January it filed papers in that state and with the Securities and Exchange Commission pegging San Jose, Calif., as the official headquarters.
Demand from direct customers has been stable, CEO Mark Thompson said in a statement, but sell-through from distributors to the computers and consumer products segment has been weak. As expected, demand from the solar inverter market has been weak, too.
Fairchild also reduced its gross margin estimate. It had previously expected a range of 36.5 percent to 36.9 percent, now cut to 36 percent to 36.5 percent.
Fairchild shares fell 68 cents, or 5.5 percent, to $11.80 in morning trading Tuesday.