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National Semiconductor Reports Q3

SANTA CLARA, Calif. — National Semiconductor Corp. (NYSE: NSM) today reported sales of $343.9 million and net income of $59.4 million, or 24 cents per diluted share, for the third quarter of fiscal 2011, which ended Feb. 27, 2011.

National's third quarter sales were 12 percent lower than the $390.4 million in sales reported in the second quarter of fiscal 2011 due to inventory adjustments in the distribution channel and seasonally lower shipments to wireless handset customers following the holiday sales period. Sales in the third quarter of fiscal 2011 were 5 percent lower than the $361.9 million reported in the third quarter of fiscal 2010.

Third quarter net income of $59.4 million, or 24 cents per diluted share, was a decrease from the $83.5 million, or 34 cents per diluted share, in the second quarter of fiscal 2011. One year ago, National reported net income of $53.2 million, or 22 cents per diluted share for the third quarter of fiscal 2010.

Gross margin of 66.5 percent decreased from 68.9 percent in the second quarter of 2011, driven by lower factory utilization in connection with the reduced sales volume. National reported gross margin of 67.3 percent in the third quarter of fiscal 2010.

Bookings for Q3, Fiscal 2011
National's total company bookings in the third quarter of fiscal 2011 were approximately the same as in the preceding quarter. Bookings were up sequentially in the North America and Asia Pacific regions, and down in Europe and Japan. During the third quarter of fiscal 2011, billings exceeded bookings.

Notable Items in Q3, Fiscal 2011
Third quarter fiscal 2011 results included a $6 million pre-tax impairment charge related to assets held for sale. This amount is included within the $8.2 million of total restructuring expenses associated with previously announced plant closures.

Outlook for Q4, Fiscal 2011
For the fourth quarter of fiscal 2011, National projects the following:

  • Revenues between $360 million and $370 million, an increase of approximately 4 percent to 7 percent sequentially
  • Gross margin percentage between 66 percent and 67 percent
  • Combined R&D and SG&A expenses between $132 million and $138 million

    “As we move beyond the inventory correction, and the post-holiday slowdown in the mobile phone market, we are looking forward to resuming revenue growth,” said Don Macleod, National's chief executive officer. “We see our power management and, in particular, energy efficiency solutions driving revenue growth in broad industrial and mobile device markets.”

    Company Declares Dividend
    The company announced today that the Board of Directors has declared a cash dividend of $0.10 per outstanding share of common stock. The dividend will be paid on April 11, 2011 to shareholders of record at the close of business on March 21, 2011.

    {complink 3614|National Semiconductor Corp.}

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