DOW JONES NEWSWIRES
National Semiconductor Corp.'s (NSM) fiscal first-quarter profit
dropped 63% as revenue dropped by a third, but the analog chip
maker indicated demand was rebounding.
The analog-chip maker forecast fiscal second-quarter revenue of
$325 million to $340 million, above Wall Street's estimate of
$315.9 million. National Semi's bullish outlook echoes rival Texas
Instruments Inc. (TXN), which on Wednesday sharply raised its
fiscal third-quarter guidance.
"Demand was better than we expected, especially for our power
management products going into broad industrial applications," said
Chief Executive Brian Halla.
National Semi, whose chips help run cellphones, cars and
high-definition televisions, has cut costs as it shifts to more
lucrative products for specific markets, particularly energy
management.
For the quarter ended Aug. 30, National Semi reported a profit
of $29.8 million, or 13 cents a share, down from $79.6 million, or
33 cents a share, a year earlier.
The latest results included $5.7 million in restructuring
charges, compared with $1.1 million in similar costs in the
prior-year quarter. Analysts estimated per-share earnings of 7
cents, according to a poll by Thomson Reuters.
Revenue dropped 33%, to $314.4 million. In June, National Semi
predicted revenue of $285 million to $305 million.
Gross margin fell to 61.1% from 66%, a record high for the
company.
Bookings grew 17% from the fiscal fourth quarter on higher order
rates in North America, Europe and Japan. Total billings exceeded
bookings in the first quarter.
National Semi's shares were at $15.90, down 0.4%, in after-hours
trading. The stock has gained three-quarters from a five-year low
in November but is still down about 15% from a year ago.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com