Fairchild Lowers Q3 Sales Outlook; Announces Plan To Reduce Operating Expenses

(RTTNews) - Fairchild Semiconductor International Inc. (FCS), a leading global supplier of power semiconductors, reported that the company now expects its third quarter sales to be approximately $340 million compared to the previous range of $355 to $375 million. The company said it expects adjusted gross margin to be within the previous guidance range of 34.0 to 35.0 percent.

Fairchild also announced it has initiated a program to structurally reduce operating expenses by approximately $30 to $34 million annually which is expected to be implemented by the middle of the fourth quarter of 2015. The company expects to incur approximately $13 million of severance expenses in the third quarter associated with the program.

"Given the incrementally weaker demand environment, we are taking decisive steps to reduce operating expenses to our target model of 25 percent of sales at the current revenue level," said Mark Thompson, Fairchild's CEO.