Fairchild Semiconductor (FCS) Misses Q4 EPS by 20c

Fairchild Semiconductor (NASDAQ: FCS) reported Q4 EPS of ($0.06), $0.20 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $317.2 million versus the consensus estimate of $326.74 million.

“While fourth quarter sales were lower than expected, distributors ordered less than they consumed resulting in a moderate sequential reduction in channel inventory,” said Mark Thompson, Fairchild’s chairman, president and CEO. “Our fourth quarter guidance assumed channel inventories would remain flat sequentially, so the total demand was in the middle of our original estimate range. This lower channel inventory level positions us very well as we enter 2016. Order rates were stable with book to bill near parity for the fourth quarter. Sales of our products serving the automotive end market were up strongly during the fourth quarter and grew 9 percent in 2015. Demand from the enterprise computing and telecom sector also remained solid during the quarter and finished the year with good momentum. The industrial, appliance and consumer end markets were weaker than expected, especially in Greater China. Mobile end market demand also was lower sequentially due to inventory reductions and normal product cycle dynamics. Mobile sales were lower for the full year as demand from a large mobile customer decreased significantly in the second half and was partially offset by rising sales and content at two other large mobile accounts.”

“Looking forward, our order rates have improved in January and we are well positioned to deliver seasonal sales growth in the first quarter,” said Thompson.

SI NOTE - In deal to be acquired by ON Semiconductor (NASDAQ: ON).

For earnings history and earnings-related data on Fairchild Semiconductor (FCS) click here.

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