The demand of Fairchild Semiconductor International Inc. received an upsurge as the first quarter profit of the power-chip maker climbed to its peak gross margin in ten years.

The second quarter net revenue was also projected to be at $395 million to $400 million. It was earlier predicted by analysts that the revenue to be $380 million on average.

Fairchild Semiconductor International has informed that it will cut its worldwide workforce by 12 percent, or about 1,100 jobs, to cut costs and boost cash flow.

Along with job cuts, the South Portland, Maine-based company has also decided to cut its revenue outlook for the fourth quarter and said it expected more downward pressure on margins.