Fairchild Semi misses by $0.03, misses on revs; updates on merger talks
Reports Q4 (Dec) earnings of $0.11 per share, $0.03 worse than the Capital IQ Consensus of $0.14; revenues fell 5.8% year/year to $317.2 mln vs the $326.99 mln Capital IQ Consensus.
- Fairchild previously disclosed that it is is currently reviewing an unsolicited proposal from China Resources Microelectronics Limited and Hua Capital Management Co.,
- The parties continue to undertake reciprocal due diligence and discuss the terms of the Consortium's proposal. The Board met on January 25, 2016 and received an update on the ongoing discussions. There can be no assurance that Fairchild's board of directors will ultimately determine that the Consortium's proposal is a Superior Proposal (as defined in the Agreement and Plan of Merger with ON Semiconductor) that the terms of a transaction will be the same as those reflected in the Consortium's proposal or that any transaction with the Consortium will be agreed to or consummated.
- Fairchild remains subject to the Agreement and Plan of Merger with ON Semiconductor, and Fairchild's board of directors has not changed its recommendation in support of that agreement, nor has Fairchild's board of directors made any recommendation with respect to the Consortium's proposal.
Given the current acquisition process, Fairchild has discontinued its practice of providing detailed forward guidance and conducting an earnings conference call to discuss its financial results.