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Fairchild Semiconductor International Q2 2007 Earnings Call Transcript

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2007-07-19 12:13:54.0

Tags: Fairchild Semiconductor International Inc.

Question-and-Answer Session

Operator

Thank you sir. [Operator Instructions]. Our first question comes from Michael Masdea; go ahead. Please state your question.

Ross Seymore - Deutsche Bank Securities

I am Mr. Ross calling in. In your press release, you talked about higher order rates driving longer lead times. Could you discuss how much of the order increase you attribute to higher lead times and what you do think order rates would have done, had lead times remained flat?

Mark S. Thompson - President and Chief Executive Officer

We wouldn't attribute any of the higher order rates to increase lead times. The increase in lead-time is very small and if we look at the effect of that, we don't believe it's any of increased order rates.

Ross Seymore - Deutsche Bank Securities

Okay. And so can you just further discuss then, I mean as we go into the second half year... of the year, what is the overall costumer mentality and what is your outlook for the second half?

Mark S. Thompson - President and Chief Executive Officer

Well the general outlook for the second half across all the segments is in aggregate. People are seeing stronger general demand than they saw in the first half of the year and that's we believe what's driving the higher order rates. Obviously there are some very strong segments, notebook computing as a particularly strong segment that stands at the top of that. There is also certainly some selective customer weakness and enhance that for example that's at the lower end of that range. But in aggregate we see a more positive environment in the second half of the year than we saw in the first half.

Ross Seymore - Deutsche Bank Securities

Okay. And finally could you just give a book to bill? I don't know if you gave that earlier.

Mark S. Frey - Executive Vice President and Chief Financial Officer

We don't give specific book to bills, but as we said in the call, the order rates were up significantly over our last quarter's and we did build backlog during the quarter.

Ross Seymore - Deutsche Bank Securities

Okay, thank you.

Operator

Okay. Our next question comes from Craig Ellis. Go ahead Craig, your line is now open.

Craig A. Ellis - Citigroup

Thank you. The question is for Mark Frey. Mark, you mentioned in the third quarter gross margins would benefit from mix. Is that really an inter-segment dynamic or an intra-segment dynamic or would something that might be happening within functional products or analog?

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