Fairchild Semiconductor saw a 7 percent drop in sales in the third quarter, down to $403.2 million, due to weakening demand in the computer and consumer markets.
That was also 3 percent lower than the same period a year ago. The computer chip maker realized profits of $35.8 million off those sales, down from $44.9 million the quarter before.
“Mobile and automotive demand was in line with expectations,” said company President and CEO Mark Thompson in the Securities and Exchange Commission filings reported Thursday. “Computing demand remained muted and we continue to drive inventory lower in the distribution channel for these products. Consumer and solar demand remains weak.”
In September, the San Jose, Calif.-based Fairchild had revised its earnings estimates downward, saying it expected 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 at the time 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.
Mark Frey, Fairchild’s executive vice president and chief financial officer, said the company expects sales of $350 million to $370 million in the fourth quarter.
According to Thomson Reuters I/B/E/S, analysts were anticipating fourth quarter sales of roughly $397 million.
Fairchild, which trades on the New York Stock Exchange under the symbol FCS, closed at $12.24 Wednesday.