DOW JONES NEWSWIRES
National Semiconductor Corp. (NSM) posted a surprise profit for
its fiscal third quarter Wednesday despite sharply lower demand and
margins as the analog-chip maker said it plans another round of job
cuts.
The company's shares, which have lost half their value the past
seven months, rose 2.6% to $12 in premarket trading.
National Semiconductor, which also lowered its revenue view
again for the year, will eliminate 1,725 jobs, 875 coming from
manufacturing consolidation. It will shut an assembly and test
plant in China and a wafer fabrication facility in Texas over the
next few quarters. The other layoffs will occur worldwide in the
rest of National Semi's operations.
The reductions will result in $160 million to $180 million in
charges, of which $130 million to $145 million would likely be
recorded in the fourth quarter of fiscal 2009 and the remainder in
ensuing quarters. Also impacting the bottom line for the period
will be an expected 5% to 10% revenue drop from the third quarter;
analysts surveyed by Thomson Reuters on average were expecting a 1%
decline.
The global recession has crimped demand for all types of
consumer electronics, sending semiconductor demand into a funk and
leading to layoffs and budget cuts across the industry.
For the quarter ended March 1, National Semiconductor said net
income fell 71% to $21.1 million, or 9 cents a share, from $72.9
million, or 29 cents a share, a year earlier. The latest results
included an $11 million tax benefit. Analysts expected a per-share
loss of 5 cents.
Revenue dropped 37% to $292.4 million, in line the company's
expectations. There was an extra week in the period.
Gross margin slid to 57.5% from 64.3% on the sales woes.
Bookings fell 25% amid a broad drop in orders that extended to
all major markets.
-By Katherine E. Wegert, Dow Jones Newswires; 201-938-5294;
katherine.wegert@dowjones.com