Post-earnings Coverage - Fairchild Semiconductor

LONDON, February 5, 2015 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings coverage on Fairchild Semiconductor International Inc. (NASDAQ: FCS). On January 22, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 28, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Fairchild%20Semiconductor%20Intl.&d=05-Feb-2015&s=FCS to read our free earnings review on Fairchild Semiconductor International Inc. (Fairchild). During FY 14, the company reported a 2% Y-o-Y growth in total revenue. Chairman, President and CEO of Fairchild, Mark Thompson informed that sales growth in 2014 was driven by strong demand for products serving the automotive, battery charging, lighting, communications infrastructure and data center end markets. This growth was partially offset by lower demand across the year from one large customer, he added. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Fairchild%20Semiconductor%20Intl.&d=05-Feb-2015&s=FCS

Earnings Overview 

During Q4 FY14, Fairchild reported total revenue of $336.6 million, compared to $341.1 million in Q4 FY13. The company's total revenue during the reported quarter came below Bloomberg analysts' forecast of $350.2 million. Further, Fairchild's gross margin was 31.0% in Q4 FY14, compared to 30.9% in Q4 FY13. Also, the company's adjusted gross margin improved 110 basis points Y-o-Y to 32.4%. Free research on FCS can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Fairchild%20Semiconductor%20Intl.&d=05-Feb-2015&s=FCS

In Q4 FY14, the company saw a net loss of $42.7 million, or $0.36 loss per diluted share, as compared to net income of $0.9 million, or $0.01 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected the company to report net income of $11.8 million, or $0.11 per diluted share, in Q4 FY14. On the other hand, Fairchild's adjusted net income stood at $11.9 million, or $0.10 per diluted share, in Q4 FY14, compared with adjusted net income of $13.5 million, or $0.11 per diluted share in Q4 FY13.

For FY14, Fairchild's total revenue stood at $1.43 billion, compared to $1.41 billion in FY13. The company's total revenue during FY14 came below Bloomberg analysts' expectation of $1.45 billion. In FY14, the company's gross margin increased to 32.5% from 29.6% in FY13. Moreover, the company's adjusted gross margin also improved from 30.3% in FY13 to 32.9% in FY14.

During FY14, the company reported net loss of $35.2 million, or $0.29 loss per diluted share, compared to net income of $5.0 million, or $0.04 per diluted share, in FY13. Analysts from Bloomberg had expected the company to report net income of $19.3 million, or $0.14 per diluted share, in FY14. Additionally, Fairchild adjusted net income improved from $34.6 million, or $0.27 per diluted share in FY13 to $76.4 million, or $0.62 per diluted share, in FY14. Sign up and read the free analyst's notes on FCS at:

http://get.Investor-Edge.com/pdf/?c=Fairchild%20Semiconductor%20Intl.&d=05-Feb-2015&s=FCS

Mr. Thompson stated that incoming order volume increased in December 2014 and has accelerated so far in January 2015. Distributors decreased inventory of Fairchild's products by approximately $8 million sequentially resulting in a lean 9 weeks of inventory which impacted the company's Q4 FY14 results but positions it well for the first half of 2015, he added. The company expects seasonally higher sales for its products serving the automotive, industrial and appliance end markets offset by normal weakness for consumer-related products in Q1 FY15.

Mark Frey, Executive Vice President and CFO at Fairchild, commented that the company's R&D and SG&A expenses were down 4% sequentially to less than $92 million due to further cost reductions and lower variable compensations. He also informed that Fairchild's free cash flow was $33 million for Q4 FY14 and up 38% for FY14 to $139 million. He added that Fairchild repurchased 10 million shares of its stock for $142 million in 2014 to end the year with total cash and securities exceeding the company's debt by $155 million.

Commenting on the company's guidance for Q1 FY15, Mr. Frey said that Fairchild expects revenue to be in the range of $340 million to $360 million and adjusted gross margin to be around 31.0% to 32.0%. He added that the company anticipates R&D and SG&A spending to be $94 million to $96 million, and its adjusted tax rate to be at 12% plus or minus 3% for Q1 FY15. Visit Investor-Edge and access the latest research on FCS at:

http://get.Investor-Edge.com/pdf/?c=Fairchild%20Semiconductor%20Intl.&d=05-Feb-2015&s=FCS

Stock Performance 

On the day of the earnings release, January 22, 2015, shares of Fairchild ended the session at $16.15, down 3.18%. Since then, the stock has moved both ways with losses outperforming gains. On the last close, Wednesday, February 04, 2015, the company's stock finished at $15.69 which is 0.88% below its previous day's closing price of $15.83, after vacillating between $15.52 and $16.00. A total of 1.33 million shares were traded which was below its three months average volume of 1.36 million shares. Over the previous three trading sessions and over the past three months, the company's shares have gained 2.21% and 3.98%, respectively. Further, the stock has surged 27.04% over the last one year. Shares in Fairchild are trading above their 200-day moving average of $15.49.

Sneak Peek to Corporate Insider Trading 

In the last one month, Fairchild has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on FCS is available at:

http://get.Investor-Edge.com/pdf/?c=Fairchild%20Semiconductor%20Intl.&d=05-Feb-2015&s=FCS

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