Google and Larry Page Excited About Growth as FCS Faces Demand Decline After Earnings

Google Inc. (NASDAQ:GOOG) reported higher profit for the fourth quarter as revenue showed growth. Net income for the internet information provider rose to $2.71 billion ($8.22 per share) vs. $2.54 billion ($7.81 per share) in the same quarter a year earlier. This marks a rise of 6.4% from the year earlier quarter. Revenue rose 25.4% to $10.58 billion from the year earlier quarter. GOOG reported adjusted net income of $9.50 per share. By that measure, the company beat the mean estimate of $9.06 per share. It beat the average revenue estimate of $8.4 billion.

Google had a really strong quarter ending a great year. Full year revenue was up 29%, and our quarterly revenue blew past the $10 billion mark for the first time,” said Larry Page, CEO of Google. “I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally – well over double what I announced just three months ago. By building a meaningful relationship with our users through Google+ we will create amazing experiences across our services. I’m very excited about what we can do in 2012 – there are tremendous opportunities to help users and grow our business.”

Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Yahoo! Inc. (NASDAQ:YHOO), Baidu.com, Inc. (NASDAQ:BIDU), Apple Inc. (NASDAQ:AAPL), AOL, Inc. (NYSE:AOL), Amazon.com, Inc. (NASDAQ:AMZN), Adobe Systems Incorporated (NASDAQ:ADBE), Demand Media Inc (NYSE:DMD), IAC/InterActiveCorp (NASDAQ:IACI), and Answers Corporation (NASDAQ:ANSW).

Fairchild Semiconductor Corporation (NYSE:FCS) reported its results for the fourth quarter. Net income for Fairchild Semiconductor Corporation fell to $21.3 million (17 cents per share) vs. $51 million (40 cents per share) a year earlier. This is a decline of 58.2% from the year earlier quarter. Revenue fell 14.7% to $339.4 million from the year earlier quarter. FCS reported adjusted net income of 15 cents per share. By that measure, the company fell short of mean estimate of 16 cents per share. It fell short of the average revenue estimate of $358.9 million.

“We reduced our overall inventory dollars in the fourth quarter despite significantly lower demand,” said Mark Thompson, Fairchild’s president and CEO. “Distribution sell-through decreased 20 percent sequentially due to lower end market demand and further downstream inventory reductions in the appliance, consumer, industrial, solar and computing supply chains. We also experienced about a two to three percentage point negative impact to sales due to supply disruptions related to the flooding in Thailand. Despite the weak sell-through and supply disruptions, we reduced channel inventory by three percent and internal inventory by 10 percent sequentially. There were some bright spots in demand as our mobile analog business posted solid sequential sales growth in the fourth quarter and our auto sales also held up well. In these times of uncertain demand, we focus on tightly managing the variables under our control such as inventories and expenses. We made good progress reducing inventories and operating expenses in the fourth quarter and we plan to continue these efforts as we enter 2012.”

Competitors to Watch: ON Semiconductor Corp. (NASDAQ:ONNN), National Semicond. Corp. (NYSE:NSM), Texas Instruments Inc. (NYSE:TXN), Intersil Corporation (NASDAQ:ISIL), Diodes Incorporated (NASDAQ:DIOD), STMicroelectronics N.V. (NYSE:STM), Infineon Tech. AG (IFNNY), Microsemi Corporation (NASDAQ:MSCC), Maxim Integrated Products Inc. (NASDAQ:MXIM), and Analog Devices, Inc. (NYSE:ADI).