Chip-maker Fairchild's 3Q profit drops 31 percent

Fairchild Semiconductor 3rd-qtr profit drops 31 percent, 4Q sales outlook is short of St. view

Associated Press

SAN JOSE, Calif. (AP) -- Weakening demand for computers is hurting another chip-maker. Fairchild Semiconductor International Inc. said Thursday that that its third-quarter net income fell 31 percent.

While its adjusted profit topped analyst expectations, the company's revenue guidance for the current quarter fell short.

Fairchild earned $24.7 million, or 19 cents per share, in the July-September period. That's down from $35.8 million, or 28 cents per share, in the same three months a year earlier. Excluding costs related to restructuring its business and other one-time items, Fairchild earned 25 cents per share in the latest quarter, beating Wall Street's expectations.

Revenue fell 11 percent to $358.8 million from $403.2 million.

Analysts, on average, were expecting earnings of 17 cents per share on revenue of $368.6 million, according to a poll by FactSet.

CEO Mark Thompson said demand for the company's chips for mobile devices grew from the April-June quarter, but that wasn't enough to offset weaker demand for other products, particularly for computer chips.

Waning demand for personal computers is hurting many chip-makers. Intel Corp., the world's largest chip-maker, on Tuesday said its revenue from PC chips fell 8 percent in the latest quarter as worldwide PC sales shrink.

Fairchild expects fourth-quarter revenue in the range of $330 million to $350 million, when analysts predict $379.8 million.

Shares of the San Jose, Calif., company rose 28 cents, or 2.3 percent, to $12.74 in late morning trading.

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