DOW JONES NEWSWIRES
National Semiconductor Corp. (NSM) swung to a fiscal
fourth-quarter loss - its first in six years - on large
restructuring and impairment charges.
Shares fell 1.6% to $14.16 in after-hours trading although the
results topped both Wall Street and company expectations, and the
analog-chip maker predicted fiscal first-quarter revenue above
analysts' estimate. The stock has lost about a third of its value
since September, but is up 42% this year.
"Business conditions improved through the quarter. We saw
increasing orders from our wireless handset customers as they began
ramping production of new smartphone models," said Chief Executive
Brian Halla.
National Semi has announced plans to eliminate 26% of its work
force and close plants as it shifts focus from offering a broad
line of low-priced chips to developing more lucrative products for
specific markets, particularly energy management.
Rival Texas Instruments Inc. (TXN), which also is focusing on
analog chips, on Tuesday sharply raised its fiscal second-quarter
guidance, saying customers were reducing inventory at a slower rate
than previously. Other companies also have pointed to signs of a
bottom in demand.
For the quarter ended May 31, National Semi reported a loss of
$63.7 million, or 28 cents a share, compared with a profit of $83.2
million, or 34 cents a share, a year earlier.
The latest results included $116.1 million in restructuring and
impairment charges. The prior-year quarter included a $9.1 million
charge for severance and factory modernization, $20 million in
pretax stock compensation costs and $6 million in tax benefits.
Analysts estimated a loss of 38 cents a share, according to a
poll by Thomson Reuters.
Revenue dropped 39% to $280.8 million. In March, National Semi
predicted revenue of $263.2 million and $277.8 million.
Gross margin fell to 58.3% from 65.9%.
Bookings grew 30% from the fiscal third quarter on increased
orders from manufacturers of wireless handsets and other personal
mobile devices and from those serving the broader electronics
market. Bookings were up sequentially in all regions except Japan,
with the largest increase in the Asia Pacific region. Total company
bookings exceeded billings.
Inventory decreased 9.4% from a year earlier.
Looking ahead, National Semi, which makes chips that help run
cellphones, computers and high-definition televisions, expects
fiscal first-quarter revenue of $285 million to $305 million.
Analysts estimated $282.5 million.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com