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Fairchild Semi follow-up: FCS cuts guidance citing incrementally weaker demand environment (14.04)
Co issues downside guidance for Q3 (Sep), sees Q3 (Sep) revs of $340.00 mln vs. $364.33 mln Capital IQ Consensus Estimate, down from prior guidance of $355-375 mln.
- Adjusted gross margin is expected to be within the previous guidance range of 34.0% to 35.0%.
- Operating expenses are now forecast to be $90 to $92 mln compared to the previous guidance of $95 to $97 mln.
- FCS also announced today it has initiated a program to structurally reduce operating expenses by approximately $30 to $34 mln annually which is expected to be implemented by the middle of the fourth quarter of 2015.
- "Given the incrementally weaker demand environment, we are taking decisive steps to reduce operating expenses to our target model of 25% of sales at the current revenue level."