National Is Bullish
National posts strong Q3, sees growth in Q4
Silicon Strategies
09/04/2003, 1:05 PM ET
SANTA CLARA, Calif. -- National Semiconductor Corp. moved back into the black, as the chip maker today (Sept. 4, 2003) reported a profit of $29.7 million, or 15 cents per share, on flat revenues of $424.8 million for the first quarter of fiscal 2004, which ended August 24.
The first quarter net profit included special charges of $12.6 million, primarily for severances and asset impairments, and a $1.9 million net charge for implementing FAS 143, a new accounting standard. These charges were partially offset by miscellaneous gains of $9.1 million.
In the previous quarter, National posted a loss of $4.4 million, or minus 2 cents a share, on sales of $425.3 million. The Santa Clara-based chip maker posted a profit of $1.3 million, or 1 cent a share, on sales of $420.6 million in the like period a year ago.
The company was bullish about its results. "Our numbers speak for themselves," said Brian L. Halla, National's chairman, president and CEO, in a statement. "In one year, we've improved National's summer quarter profits from $1 million to nearly $30 million and we're continuing to gain share in our key analog markets."
Worldwide bookings exceeded billings in the first quarter of fiscal 2004. Orders showed particular strength in the Asia Pacific and Japan regions.
In addition, National started the second quarter of fiscal 2004 with the highest 13-week backlog in 10 quarters. Overall bookings for the first quarter showed a slight seasonal decline from the spring quarter. However, order rates improved as the quarter progressed.
On the product front, portable power management and wireless product orders led the company's growth. Bookings for data conversion and PC products also outpaced the company's overall bookings rate.
National's guidance for the second quarter of FY 2004 is for revenues to grow 4 percent to 7 percent sequentially. "The steps we've taken this year to generate 'higher returns faster' are clearly working," said Halla. "Our focus on National's core analog strengths and our investments in its fastest growing areas, such as power management, are paying off." |
