© ermess dreamstime.com
Business | July 18, 2014
Fairchild up on sales
Fairchild Semiconductor reported second quarter sales of $371.6 million, up 8 percent from the prior quarter and 4 percent higher than the second quarter of 2013.
Fairchild reported second quarter net income of $17.8 million or $0.14 per diluted share compared to a net loss of $9.3 million or $0.07 per diluted share in the prior quarter and a net loss of $7.5 million or $0.06 per diluted share in the second quarter of 2013. Gross margin was 33.4 percent compared to 30.3 percent in the prior quarter and 29.1 percent in the year-ago quarter.
Fairchild reported second quarter adjusted gross margin of 33.4 percent, up 310 basis points from the prior quarter and 360 basis points higher than the second quarter of 2013. Gross margin in quarters prior to the second quarter of 2014 excluded accelerated depreciation related to a line closure. Adjusted net income was $25.2 million or $0.20 per diluted share, compared to adjusted net income of $4.9 million or $0.04 per diluted share in the prior quarter and $1.7 million or $0.01 per diluted share in the second quarter of 2013. See the Reconciliation of Net Income to Adjusted Net Income exhibit included in this press release for more details on the other adjustment items.
"Fairchild continues to deliver steady sales growth due to improved execution and broad-based demand strength," said Mark Thompson, Fairchild's chairman and CEO. "Our distribution sell-through or POS has grown for six consecutive quarters while our weeks of inventory in the channel decreased again to about 9 weeks. We are managing the supply chain very well to maintain short lead times and lean, yet responsive inventory levels to better support our customers. Our current backlog is modestly higher than a quarter ago and we expect to grow sales again in the third quarter. We generated strong cash flow in the second quarter due to improved earnings coupled with low capital spending and favorable changes in working capital. We repurchased 4 percent of our outstanding shares of stock during the second quarter and we plan to continue returning cash to shareholders.
Second Quarter Financials
"Adjusted gross margin increased 3 points sequentially due to better manufacturing execution in the second quarter and improved product mix," said Mark Frey, Fairchild's executive vice president and CFO. "R&D and SG&A expenses were $98.0 million, up 2 percent sequentially due to the annual merit increase and equity vesting offset by some one-time benefit cost reductions. Free cash flow was a positive $70 million for the second quarter. We ended the second quarter with total cash and securities exceeding our debt by $120 million which was up slightly from the prior quarter despite repurchasing $69 million in stock. This was due to higher net income, lower capital spending and favorable changes in working capital.
The UK’s biggest wafer fab wants to become even bigger
Newport Wafer Fab, Infineon’s former manufacturing fab in South Wales, is looking to raise GBP 50 million to expand its production capacity amidst global semiconductor shortage.
TE Connectivity has sold Axicom to RCP
TE Connectivity has divested its Axicom high voltage products business division to RCP Group, an independent investment firm based in Munich.
Sponsored content by Shenzen Kinwong Electronic
The development trend of printed circuit board products and Kinwong's solution
With the rapid development of electronic technology in recent years, printed circuit board (PCB) products are pursuing higher heat dissipation capabilities, with high voltage and high current characteristics, and are developing towards high-density interconnection technology (HDI).
John Ternus to take over as Apple's hardware engineering chief
Apple's Dan Riccio will transition to a new role focusing on a new project and reporting to CEO Tim Cook. John Ternus will now lead Apple’s Hardware Engineering organization as a member of the executive team.
HC Solutions is now in the hands of S&T
S&T AG has acquired 100% of the Linz-based company HC Solutions GmbH (HCS) through its wholly-owned subsidiary Kontron Technologies GmbH (KTEC).
Cadence to acquire NUMECA
Cadence Design Systems has entered into a definitive agreement to acquire NUMECA International, a company focused on computational fluid dynamics (CFD), mesh generation, multi-physics simulation and optimization.
Tech Etch installs Aqua Rose cleaner and tester
Tech Etch, a US-based provider of custom flex and rigid-flex circuits, EMI/RFI shielding solutions, and precision etch & form, has purchased an Aqua ROSE Batch Cleaner/Ionic Contamination Tester.
GlobalWafers increases its offer for Siltronic
GlobalWafers says it has increased its all-cash takeover offer of Siltronic, by its subsidiary GlobalWafers GmbH, to EUR 140 per Siltronic share.
NI and Konrad ink agreement to accelerate autonomous vehicle test
NI and Konrad Technologies (KT) have entered into a strategic agreement to develop test systems and solutions for autonomous driving software and hardware validation.
Intel expands in Poland
The US chipmaker is preparing to expand its operations in the Polish city of Gdańsk. The company will be constructing its sixth building at its campus in the city.
Murata completes new Okayama production building
The Japanese company’s production subsidiary, Okayama Murata Manufacturing, initiated an expansion of its operations in Setouchi City with a new production building in December 2019. Now the building stands complete.
Osram signs supply and commercial agreement with LeddarTech
ADAS and AD sensing specialist, LeddarTech, and automotive lighting and laser systems supplier Osram, have entered into a long-term agreement.
ITW to acquire MTS Test & Simulation business From Amphenol
Illinois Tool Works Inc., a global multi-industrial manufacturing company, and the provider interconnect, antenna and sensor solutions, Amphenol Corporation, have entered into an agreement under which ITW will acquire MTS Systems Corporation’s Test & Simulation business, following the closing of Amphenol’s acquisition of MTS.
Tobey Gonnerman named Fusion Worldwide's new President
The global sourcing distributor announces that Tobey Gonnerman has been appointed as the company’s new President.
Solving the Cable TV Infrastructure Downstream Transmitter Challenge
Driven by demand for faster internet connectivity, the cable TV industry has developed new network architectures for the delivery of multigigabit services to subscribers. This fiber deep approach, using a remote PHY device (RPD), moves critical hardware closer to the users by using digital fiber.
Boyd expands its footprint with new facility in Mexico
Thermal management and engineered material solutions specialist Boyd Corporation, has expanded its presence in North America with a newly built facility strategically located in Juarez, Mexico.
Farnell becomes a global distribution partner NI
the distributor of electronic components, products and solutions has been appointed as an NI Authorized Distributor, expanding its product portfolio to include NI software-connected test and measurement solutions for customers of all sizes.
Foxconn and Winbond invest in chipmaker Kneron
Foxconn and Winbond joins companies such as Qualcomm, Horizons, Sequoia and Weltrend as high profile investors in Kneron
EV Group sets up customer training facility at HQ
EV Group (EVG) has established the EVG Academy, a training facility for customers that provides technical training on all classes of the company's equipment as well as on its CIM Framework software platform in an optimised environment.
Denso team up with Aeva to develop sensing and perception systems
Mobility supplier Denso says that it is partnering with U.S. LiDAR and perception systems company, Aeva, to develop next-generation sensing and perception systems.
Fire hit Taiwanese MLCC manufacturer in China
On January 13 a fire broke out at Taiwanese passive component maker Walsin Technology’s Dongguan, China site.
Thin Film Products joins SERMA Microelectronics
SERMA Microelectronics, a subsidiary of the French electronics specialist SERMA Group, has finalised the purchase of TFP (Thin Film Products), a French manufacturer of thin-film microwave circuits for space, military and civil applications.
New Korean Zestron Technical Center opens for customers
The provider of high precision cleaning products has expanded its operations by opening a new Technical Center, located in Anyang, Korea.
A2 Global Electronics names new executives
Electronic component distribution and supply chain service provider, A2 Global Electronics, has appointed Anthony Andriano as its new Chief Financial Officer and promoted Jesper Romell as its new President.
ROHM expands production capacity of SiC power devices
ROHM has recently held an opening ceremony announcing the completion of a new building at ROHM Apollo's Chikugo plant, which the company started building back in February 2019, to enhance the production capacity of SiC power devices.
Elmos acquires Online Engineering GmbH
Elmos is strengthening its in-house competencies in software engineering via the acquisition of Dortmund based engineering service provider Online Engineering.
Load more news
