Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sixty2nds who wrote (29188)	3/9/2006 12:28:26 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 95748

Why do they still release earnings midday? This has got to be one of the dumbest things still practiced on ws, and that is saying something!

To: sixty2nds who wrote (29188)	3/9/2006 12:43:11 PM
From: etchmeister	Respond to of 95748

12:18 NSM reports Q3 gross margin 60.7% vs 57.6% street expectation - Stock halted (28.48 +0.45) for sure looks like margin peaked... one way to "fix" a bad call

To: sixty2nds who wrote (29188)	3/9/2006 1:31:13 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95748

National Semiconductor Posts 22 Percent Year-to-Year Revenue Growth, 60.7% Gross Margin and Earnings of 37 Cents Per Share for Third Quarter of Fiscal Year 2006 March 09, 2006 12:15:28 (ET) SANTA CLARA, Calif., March 9, 2006 /PRNewswire-FirstCall via COMTEX/ -- National Semiconductor Corporation (NSM, Trade) today reported GAAP net income of $130.1 million, or 37 cents per share, on revenues of $547.7 million for the third quarter of fiscal 2006, which ended February 26, 2006. National's third quarter revenues were 22 percent higher than the $449.2 million revenues recorded in the third quarter of fiscal 2005, and $3.7 million higher than the $544.0 million revenues reported in Q2 FY06. During the third quarter, revenues from broader markets served through National's distribution channel were strong, which more than offset an expected seasonal decline in revenues from products that serve wireless handsets. National's Q3 GAAP net income was 13 percent higher sequentially and 68 percent higher year-to-year. The Company previously reported net income of $114.7 million, or 32 cents per share, for the prior quarter and $77.4 million, or 21 cents per share, for the third quarter of fiscal 2005. The Company's profitability improvement in Q3 was driven primarily by a significant increase in quarterly gross margin, which exceeded the 60 percent milestone for the first time in National's history. The Company's gross margin of 60.7 percent in Q3 FY06 compares with gross margin of 57.2 percent last quarter and 52.7 percent in the third quarter of last year. The continued improvement in National's gross margin is a direct result of the Company's focus on growing its higher-value Analog product portfolio. In the third quarter, gross margin was also aided by improvements in manufacturing volume and efficiencies. "Business conditions were stronger than we had originally anticipated," said Brian L. Halla, chairman and CEO of National Semiconductor. "We reached our interim goal of 60 percent gross margin earlier than we expected and at the same time continued to gain market share in the analog standard linear market." Bookings Increased in Q3 National's third quarter bookings increased 2 percent sequentially from the second quarter. Bookings for analog standard linear products grew 8 percent in Q3. New orders for amplifiers, interface and power management products grew at a much higher rate than the overall company average. Bookings for products that serve wireless handsets also increased in Q3. Regionally, bookings increased in Asia Pacific and Europe. Year-to-year, total company bookings increased by more than 40 percent over last year's third quarter. Total company bookings exceeded billings in Q3 FY06. Outlook for Q4, Fiscal 2006 Based upon current business conditions, National anticipates that revenues will grow 2 to 4 percent during the fourth quarter of fiscal 2006. In this revenue range, gross margin percentage would also be expected to improve slightly in Q4. Company Declares Dividend The Company today declared a cash dividend of $0.03 per outstanding share of common stock. This dividend will be paid April 10, 2006 to shareholders of record at the close of business on March 20, 2006. Stock Buy-Back Program Update During the third quarter, National bought back $200 million of common stock under a previously approved stock repurchase program. The diluted weighted average shares outstanding for Q3 fiscal 2006 was 354.6 million shares.