Fairchild Semiconductor International In (FCS, Financial) filed Quarterly Report for the period ended 2009-06-28.
Fairchild Semiconductor Corporation is a global company solely focused on designing manufacturing and marketing high performance semiconductors for multiple end market uses. Fairchild\'s multi-market components are used in computer telecommunications automotive consumer and industrial applications. Supplying logic analog mixed signal non-volatile memory and discrete power and signal technologies solutions Fairchild is filling the gap in the global supply of building block semiconductors. (PRESS RELEASE) Fairchild Semiconductor International In has a market cap of $1.03 billion; its shares were traded at around $8.33 with and P/S ratio of 0.7. Fairchild Semiconductor International In had an annual average earning growth of 8.2% over the past 5 years.
Restructuring and Impairments. During the three and six months ended June 28, 2009, we recorded restructuring and impairment charges, net of releases, of $11.3 million and $18.0 million, respectively. In the second quarter of 2009, the charges include $9.1 million of employee separation costs and $1.2 million of fab closure costs associated with the 2009 Infrastructure Realignment Program as well as $1.0 million in employee separation costs, $0.4 million in lease impairment costs for the streamlining of warehouse operations and $0.4 million in releases associated with the 2008 Infrastructure Realignment Program. The charges in the first quarter of 2009 included $5.8 million of employee separation costs, $0.3 million in lease impairment costs and $0.2 million in releases associated with the 2008 Infrastructure Realignment Program as well as $0.8 million in asset impairment costs associated with the 2009 Infrastructure Realignment Program.
During the three and six months ended June 29, 2008, we recorded restructuring and impairment charges, net of releases, of $11.3 million and $11.5 million, respectively. In the second quarter of 2008, the charges include $1.0 million of employee separation costs and $0.1 million in reserve releases both associated with the 2007 Infrastructure Realignment Program. Charges also include $2.3 million of employee separation costs, $8.0 million in asset impairment costs and $0.1 million in office closure costs all associated with the 2008 Infrastructure Realignment Program. In addition, the first quarter of 2008 includes $0.3 million of employee separation costs and $0.1 million in reserve releases both associated with the 2007 Infrastructure Realignment Program.
Interest income. Interest income in the second quarter and first six months of 2009 decreased $1.9 million and $5.0 million, respectively, as compared to the same periods in 2008 as a result of lower invested balances in cash and cash equivalents and lower rates of return.
Other (income) expense, net. The second quarter of 2009 includes the $2.3 million impairment of a strategic investment, offset by a $0.2 million gain on the sale of a strategic investment and the $0.8 million net gain on the debt buyback transaction.
Income Taxes. Income tax benefit in the second quarter and first six months of 2009 was $2.4 million and $3.3 million on loss before taxes of $27.3 million and $79.3 million, respectively, as compared to income tax expense of $0.7 million and $5.2 million on income before taxes of $7.6 million and $29.2 million, respectively, for the same periods of 2008. The effective tax rate for the second quarter and first six months of 2009 was 8.8% and 4.2% compared to 9.2% and 17.8% respectively, for the comparable periods of 2008. The change in effective tax rate is primarily due to shifts of income and loss among jurisdictions with differing tax rates, foreign currency revaluations of tax liabilities and discrete tax expenses as a result of finalization of certain tax filings. In the first six months of 2009, the valuation allowance on our deferred tax assets increased by $10.1 million. The overall increase did not impact our results of operations.
Read the The complete ReportFCS is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Chris Davis of Davis Selected Advisers.
Fairchild Semiconductor Corporation is a global company solely focused on designing manufacturing and marketing high performance semiconductors for multiple end market uses. Fairchild\'s multi-market components are used in computer telecommunications automotive consumer and industrial applications. Supplying logic analog mixed signal non-volatile memory and discrete power and signal technologies solutions Fairchild is filling the gap in the global supply of building block semiconductors. (PRESS RELEASE) Fairchild Semiconductor International In has a market cap of $1.03 billion; its shares were traded at around $8.33 with and P/S ratio of 0.7. Fairchild Semiconductor International In had an annual average earning growth of 8.2% over the past 5 years.
Highlight of Business Operations:
We continue to manage our production output to bring internal and channel inventories within our target range. We reduced internal inventories by $33.1 million and reduced distributor inventory by approximately $75 million in first six months of 2009.Restructuring and Impairments. During the three and six months ended June 28, 2009, we recorded restructuring and impairment charges, net of releases, of $11.3 million and $18.0 million, respectively. In the second quarter of 2009, the charges include $9.1 million of employee separation costs and $1.2 million of fab closure costs associated with the 2009 Infrastructure Realignment Program as well as $1.0 million in employee separation costs, $0.4 million in lease impairment costs for the streamlining of warehouse operations and $0.4 million in releases associated with the 2008 Infrastructure Realignment Program. The charges in the first quarter of 2009 included $5.8 million of employee separation costs, $0.3 million in lease impairment costs and $0.2 million in releases associated with the 2008 Infrastructure Realignment Program as well as $0.8 million in asset impairment costs associated with the 2009 Infrastructure Realignment Program.
During the three and six months ended June 29, 2008, we recorded restructuring and impairment charges, net of releases, of $11.3 million and $11.5 million, respectively. In the second quarter of 2008, the charges include $1.0 million of employee separation costs and $0.1 million in reserve releases both associated with the 2007 Infrastructure Realignment Program. Charges also include $2.3 million of employee separation costs, $8.0 million in asset impairment costs and $0.1 million in office closure costs all associated with the 2008 Infrastructure Realignment Program. In addition, the first quarter of 2008 includes $0.3 million of employee separation costs and $0.1 million in reserve releases both associated with the 2007 Infrastructure Realignment Program.
Interest income. Interest income in the second quarter and first six months of 2009 decreased $1.9 million and $5.0 million, respectively, as compared to the same periods in 2008 as a result of lower invested balances in cash and cash equivalents and lower rates of return.
Other (income) expense, net. The second quarter of 2009 includes the $2.3 million impairment of a strategic investment, offset by a $0.2 million gain on the sale of a strategic investment and the $0.8 million net gain on the debt buyback transaction.
Income Taxes. Income tax benefit in the second quarter and first six months of 2009 was $2.4 million and $3.3 million on loss before taxes of $27.3 million and $79.3 million, respectively, as compared to income tax expense of $0.7 million and $5.2 million on income before taxes of $7.6 million and $29.2 million, respectively, for the same periods of 2008. The effective tax rate for the second quarter and first six months of 2009 was 8.8% and 4.2% compared to 9.2% and 17.8% respectively, for the comparable periods of 2008. The change in effective tax rate is primarily due to shifts of income and loss among jurisdictions with differing tax rates, foreign currency revaluations of tax liabilities and discrete tax expenses as a result of finalization of certain tax filings. In the first six months of 2009, the valuation allowance on our deferred tax assets increased by $10.1 million. The overall increase did not impact our results of operations.
Read the The complete ReportFCS is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Chris Davis of Davis Selected Advisers.
