Product category:
Analogue and Mixed Signal ICs
News Release from: National Semiconductor
Edited by the Electronicstalk Editorial
Team on 13 March 2006
National passes margin milestone
National Semiconductor has 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 26th February 2006.
National Semiconductor has 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 26th February 2006 National's third quarter revenues were 22% 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 2006
This article was originally published on Electronicstalk on 5 Jan 2001 at 8.00am (UK)
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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% higher sequentially and 68% 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.
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The company's profitability improvement in Q3 was driven primarily by a significant increase in quarterly gross margin, which exceeded the 60% milestone for the first time in National's history.
The company's gross margin of 60.7% in Q3 2006 compares with gross margin of 57.2% last quarter and 52.7% 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 analogue 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% gross margin earlier than we expected and at the same time continued to gain market share in the analogue standard linear market".
National's third quarter bookings increased 2% sequentially from the second quarter.
Bookings for analogue standard linear products grew 8% 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% over last year's third quarter.
Total company bookings exceeded billings in Q3 2006.
Based on current business conditions, National expects that revenues will grow 2 to 4% during the fourth quarter of fiscal 2006.
In this revenue range, gross margin percentage would also be expected to improve slightly in Q4.
The company has declared a cash dividend of $0.03 per outstanding share of common stock.
This dividend will be paid on 10th April 2006 to shareholders of record at the close of business on 20th March 2006.
During the third quarter, National bought back $200 million of common stock under a previously approved stock repurchase programme.
The diluted weighted average shares outstanding for Q3 fiscal 2006 was 354.6 million shares.
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