Fairchild Semiconductor has a market cap of $2.25 billion; its shares were traded at around $18.17 with a P/E ratio of 12 and P/S ratio of 1.4. Hedge Fund Gurus that owns FCS: Kenneth Fisher of Fisher Asset Management, LLC, Joel Greenblatt of Gotham Capital, Bruce Kovner of Caxton Associates, Louis Moore Bacon of Moore Capital Management, LP, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns FCS: Chuck Royce of Royce& Associates, Chris Davis of Davis Selected Advisers.
Highlight of Business Operations:Our expenditures for research and development for 2010, 2009 and 2008 were $120.2 million, $99.7 million and $112.9 million, respectively. These expenditures represented 7.5%, 8.4% and 7.2% of sales for 2010, 2009 and 2008, respectively. Advanced silicon processing technology is a key determinant in the improvement of semiconductor products. Each new generation of process technology has resulted in products with higher speed, higher power density and greater performance, produced at lower cost. We expect infrastructure investments made in recent years to enable us to continue to achieve high volume, high reliability and low-cost production using leading edge process technology for our classes of products. Our R&D efforts continue to be focused in part on new and innovative packaging solutions that make use of new assembly methods and new high performance packaging materials, as well as in exclusive and patent protected transistor structure development. We are also using our R&D resources to characterize and apply new materials in both our packaging and semiconductor device processing efforts.
Backlog at December 26, 2010 was approximately $915 million, up from approximately $586 million at December 27, 2009. We define backlog as firm orders or customer-provided forecasts with a customer requested delivery date within 26 weeks. In periods of depressed demand, customers tend to rely on shorter lead times available from suppliers, including us. In periods of increased demand, there is a tendency towards longer lead times that has the effect of increasing backlog and, in some instances, we may not have manufacturing capacity sufficient to fulfill all orders. We are currently in a period of increased demand. Additionally, backlog is impacted by our manufacturing lead times, which have increased on average from December 27, 2009 to December 26, 2010. As is customary in the semiconductor industry, we allow orders to be canceled or deliveries delayed by customers within agreed upon parameters. Accordingly, our backlog at any time should not be used as an indication of future revenues.
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