Product category:
Communications ICs (Wired)
News Release from: National Semiconductor
Edited by the Electronicstalk Editorial
Team on 16 June 2004
National hits record margin in Q4
National Semiconductor has reported a GAAP profit of $126.4 million, or 32 cents per share, on revenues of $571.2 million for the fourth quarter of fiscal 2004, which ended on 30th May 2004.
National Semiconductor has reported a GAAP profit of $126.4 million, or 32 cents per share, on revenues of $571.2 million for the fourth quarter of fiscal 2004, which ended on 30th May 2004 National's fourth quarter sales were 34% higher than the fourth quarter of fiscal 2003 and 11% higher sequentially than the third quarter of fiscal 2004, when the company reported revenues of $513.6 million and earnings of 24 cents per share
This article was originally published on Electronicstalk on 5 Jan 2001 at 8.00am (UK)
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(National's fourth quarter included 13 weeks, compared with 14 calendar weeks in the third quarter.) Gross margin rose to an all-time high of 54.4% in the fourth quarter, compared with gross margin of 44.6% for the fourth quarter of fiscal 2003 and 51.4% in the third quarter of fiscal 2004.
"National's focus on analogue is clearly paying off in the form of higher returns to our shareholders", said Brian L Halla, National's Chairman, President and CEO.
"Gross margin increased to 54% and our return on invested capital exceeded 32% in the fourth quarter".
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For the entire 2004 fiscal year, National's gross margin was 51%.
Last June, National reported gross margin of 43.4% for fiscal 2003.
The consistent improvement in gross margin has been driven by National's focus on increasing sales and market share in its higher-value, higher-margin analogue products.
Similar to the prior quarter, National's wafer fab use rate was in the mid-90s.
National's worldwide bookings increased 45% year-to-year and 2% sequentially from the third quarter (which had 14 calendar weeks compared with a normal 13-week quarter).
On a weekly run-rate basis, fourth quarter bookings rose approximately 10% from the third quarter.
Bookings for analogue products grew more than 50% year-to-year, led by strong growth in National's power management, amplifiers and data conversion products.
New orders for portable power management products and data converters outperformed the company's average both year-to-year and sequentially from the third quarter.
With respect to National's different geographies, the Asia Pacific region experienced the strongest fourth quarter bookings growth both year-to-year and quarter-to-quarter.
Bookings for North America declined from the third quarter, primarily due to the distribution channel.
Bookings in all regions grew substantially year-to-year.
Total company bookings were well above billings in the fourth quarter.
The company's bookings strength in the fourth quarter was driven largely by National's top OEM customers.
Bookings from distributors moderated during the quarter as National's delivery lead times returned to more normal levels.
Distributors' resale rates of National products to their end customers increased sequentially in all regions.
Two regions recorded double-digit percentage increases in resale rates in Q4 compared with Q3.
During the first quarter of financial year 2005, National expects revenues to be sequentially flat to up 3% from the fourth quarter.
Based on the revenue range, gross margins are expected to improve and operating expenses are expected to be comparable to fourth quarter expenses.
"Heading into the typically seasonal August quarter, we are encouraged by the fact that this year National's bookings were strong and our backlog grew during the fourth quarter", Halla said.
"We will continue to aggressively manage our business to further improve our gross margins by expanding our position in key analogue areas such as power management, amplifiers and data converters".
For fiscal 2004, National reported a GAAP net profit of $315.0 million, or 81 cents per share, on revenues of $1.98 billion.
This compares with a net loss of $33.3 million, or 9 cents per share, on revenues of $1.67 billion for fiscal 2003.
National's fiscal 2003 net loss included $43.6 million of special charges for severances related to workforce reductions and impairments of specific assets, and $13.8 million in R and D expenses for write-downs of technology licences.
Without these charges, National would have reported net income of $24.1 million, or 6 cents per share, for fiscal 2003.
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