Reported sales of $412.0 million and net income of $88.8 million.
- Q1 sales of $412 million increased 3% from Q4 of fiscal 2010 and 31% from last year’s Q1
- GAAP earnings per share of 36 cents was up from 33 cents in Q4 and 13 cents in Q1 of fiscal 2010
- Gross margin of 70.9% increased from 68.8% in Q4 and 61.1% in Q1 of fiscal 2010
- Sales outlook for Q2 of fiscal 2011 expected to be $390 million to $415 million (flat to down 5 percent)
Sept. 9, 2010 — National Semiconductor Corp. (NYSE:NSM) today reported sales of $412.0 million and net income of $88.8 million, or 36 cents per diluted share, for the first quarter of fiscal 2011, which ended Aug. 29, 2010.
National’s first quarter sales were 3 percent higher sequentially from the $398.5 million in sales reported in the fourth quarter of fiscal 2010, and 31 percent higher than the $314.4 million reported in the first quarter of fiscal 2010. First quarter fiscal 2011 sales increased sequentially due primarily to demand from wireless handset and industrial markets, the two largest markets served by National.
First quarter net income of $88.8 million, or 36 cents per diluted share, was an increase from the $79.2 million, or 33 cents per diluted share, in the fourth quarter of fiscal 2010. National reported net income of $29.8 million, or 13 cents per diluted share, in the first quarter of fiscal 2010.
First quarter gross margin of 70.9 percent set a new record for the company, driven by improved manufacturing cost efficiencies from higher capacity utilization and benefits from manufacturing consolidation completed in the fourth quarter of fiscal 2010. National reported gross margin of 68.8 percent in the fourth quarter of fiscal 2010 and 61.1 percent in the first quarter of fiscal 2010.
“Our business model is working well with another quarter of revenue growth, 70 percent gross margins and over 36 percent operating margins,” said Don Macleod, National’s chairman and chief executive officer. “However, in the near term, slower growth in our end markets and distribution channel, along with some likely inventory reduction, will mute the seasonal growth that we would normally see in our business during this time of the year.”
Bookings for Q1, Fiscal 2011
In the first quarter of fiscal 2011, National’s total company bookings decreased 10 percent sequentially, primarily from the company’s distribution channel. However, order rates improved slightly in the quarter for analog and power management products for the personal mobile device and communications infrastructure markets.
Notable Items in Q1
First quarter fiscal 2011 results included a $9.8 million pre-tax restructuring charge related to process transfers and shutdown activity for a previously announced manufacturing consolidation.
Outlook for Q2, Fiscal 2011
For the second quarter of fiscal 2011, National projects revenues to be between $390 million to $415 million, or flat to a decrease of 5 percent, compared to the first quarter of fiscal 2011.
Dividend Increases to $0.10 Per Share
As announced on July 14, 2010, the Board of Directors declared an increase of National’s cash dividend to $0.10 per outstanding share of common stock from the previous dividend of $0.08 per share. The dividend will be paid on Oct. 12, 2010 to shareholders of record at the close of business on Sept. 20, 2010.
This release contains forward-looking statements dependent on a number of risks and uncertainties pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Except for historical information contained herein, the matters set forth in this press release, including management’s expectations regarding future performance, are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include, but are not restricted to, such factors as new orders received and shipped during the quarter, the degree of factory utilization, the sale of inventories at existing prices, and the ramp up and sale of new analog products. Other risk factors are included in the company’s annual report on Form 10-K for the fiscal year ended May 30, 2010 under the captions “Outlook,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” contained therein.
About National Semiconductor
National Semiconductor is a leader in power management technology. Known for its easy-to-use analog integrated circuits and world-class supply chain, National’s high-performance analog products enable its customers’ systems to be more energy efficient. Headquartered in Santa Clara, Calif., National reported sales of $1.42 billion for fiscal 2010. Additional information is available at www.national.com.
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