National Semiconductor to cut 330 jobs

National Semiconductor Corporation today announced that it is lowering its sales outlook for the second quarter of fiscal 2009. National's revised outlook is due to a weakened economy that has led to lower-than-expected shipments to customers in the wireless handset market (which comprised approximately one-third of National's sales in the first quarter) as well as lower shipments to distributors, which service a large number of customers across a broad range of industries and markets. The global business environment has deteriorated significantly since the beginning of the quarter. New order rates are currently running at a level significantly below what the company saw in the first quarter of fiscal 2009. This drop off in new order rates has been accompanied by lower-than-expected turns orders (orders placed with delivery requested in the same quarter), which was a contributing factor to the revenue shortfall in the current quarter. The lower order rates have also resulted in significantly lower backlog for the upcoming third fiscal quarter, which ends on March 1, 2009. In light of the uncertain business climate, the company also announced today that it is taking action to cut back on operating expenses. Accordingly, the company will reduce the size of its global workforce by eliminating approximately 330 positions, primarily in non-manufacturing functions. Resources will be re-prioritized toward National’s most important growth initiatives, which leverage the company’s growing portfolio of PowerWise energy-efficient solutions. This includes recently announced initiatives aimed at improving the efficiency of solar energy systems. National currently employs approximately 7,000 people worldwide.