Product category:
Board-Level Instruments
News Release from: National Instruments
Edited by the Electronicstalk Editorial
Team on 14 December 2006
Second quarter results for National
Semiconductor
National Semiconductor Corporation has reported net income of USD91.4 million, or 27 cents per share, on revenues of USD501.6 million for the second quarter of fiscal 2007
National Semiconductor Corporation has reported net income of USD91.4 million, or 27 cents per share, on revenues of USD501.6 million for the second quarter of fiscal 2007, which ended November 26, 2006, , down 7.4% from Q1 of fiscal 20.07 Gross margin percentage was 58.9%, down from 61.7% in Q1
This article was originally published on Electronicstalk on 21 Mar 2001 at 8.00am (UK)
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Q2 earnings per share was 27 cents, down from 35 cents in Q1.
Revenue outlook for Q3 of fiscal 2007 is expected to be down 8 to 11% sequentially.
National's second quarter of fiscal 2007 results included USD33.2 million in pre-tax stock compensation expenses accounted for under FASB Statement 123.
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On a sequential basis, National's second quarter of fiscal 2007 revenues declined 7.4 percent from the first quarter, when the company reported USD541.4 million in revenues and earnings of 35 cents per share.
The sequential revenue decline was mainly due to two key factors: lower shipments to distributors who, despite experiencing flat resales of National's products, reduced their inventories during the quarter and, secondly, an approximately USD21 million decrease in foundry revenues for previously sold Cordless and PC Super I/O businesses as originally projected.
Year over year, National's second quarter sales decreased 7.8 percent from the second quarter of fiscal 2006, when the company reported sales of USD544.0 million and earnings of 32 cents per share.
Gross margin in National's second quarter of fiscal 2007 was 58.9 percent.
This was lower than last quarter's gross margin of 61.7 percent but was an increase over the 57.2 percent gross margin posted one year ago in the second quarter of fiscal 2006.
The sequential decline in gross margin percentage was due to lower manufacturing volume, as the company reduced its wafer fabrication utilisation and lowered its inventory by nearly USD18 million during the second quarter.
"While customer end demand did not demonstrate the seasonal uptick we usually see this time of year, the revenue decline this quarter was driven by inventory reductions at our distributors and some of our customers," said Brian L.
Halla, National's chairman and CEO.
"Responding to this, we were able to bring down our inventories and still hold gross margins at almost 59 percent".
National's second-quarter results included USD33.2 million in pre-tax stock compensation expenses under FASB Statement 123 of which USD6.6 million was included in cost of sales, and the remainder was included in operating expenses.
National began accounting for stock compensation expenses under FASB Statement 123 in the first quarter of fiscal 2007.
Total pre-tax stock compensation expenses in the first quarter were USD23.9 million.
National's total company bookings in the second quarter of fiscal 2007 declined by 16 percent sequentially.
This decrease was driven by lower orders from OEM customers and contract manufacturers.
Bookings from distributors also decreased in the quarter but to a lesser extent.
Total company billings exceeded bookings in the second quarter.
National anticipates that revenues in the third quarter of fiscal 2007 will decrease approximately 8 to 11 percent from second-quarter levels.
At these sales levels, gross margin percentage is anticipated to decline slightly in the third quarter.
As announced on October 6, 2006, National declared a cash dividend of USD0.04 per outstanding share of common stock, an increase from the prior quarterly cash dividend of USD0.03 per share.
This dividend will be paid January 8, 2007 to shareholders of record at the close of business on December 18, 2006.
This release contains forward-looking statements dependent on a number of risks and uncertainties pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995.
These factors include, but are not restricted to, new orders received and shipped during the quarter, the degree of factory utilisation, the sale of inventories at existing prices, and the ramp up and sale of new analogue products.
Other risk factors are included in the Company's 10-K for the year ended May 28, 2006 (see Outlook and Risk Factors sections of Management's Discussion and Analysis of Financial Conditions and Results of Operations) and the 10-Q for the quarter ended 27 August 2006. Request free introductory details about products from National Instruments ...
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