Q3 sales decreased 12% sequentially for National Semi

National’s third quarter sales were 12% lower than the USD 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% lower than the USD 361.9 million reported in the third quarter of fiscal 2010. Third quarter net income of USD 59.4 million, or 24 cents per diluted share, was a decrease from the USD 83.5 million, or 34 cents per diluted share, in the second quarter of fiscal 2011. One year ago, National reported net income of USD 53.2 million, or 22 cents per diluted share for the third quarter of fiscal 2010. Gross margin of 66.5% decreased from 68.9% 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% 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 USD 6 million pre-tax impairment charge related to assets held for sale. This amount is included within the USD 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 USD 360 - 370 million, an increase of approximately 4 - 7% sequentially - Gross margin percentage between 66 - 67% - Combined R&D and SG&A expenses between USD 132 - 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."