National Semiconductor Reports Results for Third Quarter Fiscal 2010

- Q3 sales of $362 million were up 5% from Q2 of fiscal 2010 and up 24% from Q3 of fiscal 2009

SANTA CLARA, Calif., March 11 — (PRNewswire) — National Semiconductor Corp. (NYSE: NSM) today reported sales of $362 million and net income of $53.2 million, or 22 cents per diluted share, for the third quarter of fiscal 2010, which ended Feb. 28, 2010.  

National's third quarter sales were 5 percent higher than the second quarter of fiscal 2010, when the company reported $345 million in sales, and 24 percent higher than the $292 million reported in last year's third fiscal quarter.  There were 13 weeks in National's second and third quarters of fiscal 2010 and 14 weeks in the third quarter of fiscal 2009.  Stronger demand for National's analog products in industrial markets, served primarily through distributors, drove the increase in third quarter revenues, while sales to wireless handset customers were down seasonally following the holidays.  

Third quarter net income of $53.2 million, or 22 cents per diluted share, was an increase from the $47.0 million, or 20 cents per share, in the second quarter of fiscal 2010.  Third quarter fiscal 2010 results included a pre-tax $6.4 million restructuring charge.  In last year's third quarter, National reported net income of $21.1 million, or 9 cents per share, which included approximately $11 million of discrete income tax benefits.

Stronger product mix from higher sales into industrial markets drove gross margin improvement in the quarter.  In addition, the company continued to improve its manufacturing cost performance.  Gross margin of 67.3 percent in the third quarter increased from the 65.3 percent gross margin achieved in the second quarter of fiscal 2010 and the 57.5 percent gross margin reported one year ago.  

Bookings for Q3, Fiscal 2010

National's total company bookings increased 5 percent sequentially, as order rates increased from direct OEM customers as well as from distributors.  Bookings exceeded billings in the quarter.

"Driving revenue growth is our new charter here at National Semiconductor," said Don Macleod, National's president and chief executive officer.  "Our sequential and year-on-year revenue growth demonstrates top-line improvement, driven by both our core analog business and traction in several new emerging areas."

Outlook for Q4, Fiscal 2010

National is projecting revenues to be between $375 million and $390 million (up approximately 4 to 8 percent sequentially) in the fourth quarter of fiscal 2010.

Company Declares Dividend

The company announced today that the Board of Directors has declared a cash dividend of $0.08 per outstanding share of common stock.  This dividend will be paid on April 12, 2010 to shareholders of record at the close of business on March 22, 2010.

Special Note

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 31, 2009 under the captions "Outlook," "Risk Factors" and "Management's Discussion and Analysis of Financial Conditions and Results of Operations" contained therein and the quarterly report on Form 10-Q for the quarter ended Nov. 29, 2009.

About National Semiconductor

National Semiconductor is a leader in analog power management technology.  Its products include easy-to-use integrated circuits, PowerWise products that enable more energy-efficient systems, and SolarMagic products which improve the energy output of solar arrays.  The company celebrated its 50th anniversary last May.  Headquartered in Santa Clara, Calif., National reported sales of $1.46 billion for fiscal 2009.  Additional information is available at www.national.com.

Media Contact:

Financial

LuAnn Jenkins

Mark Veeh

(408) 721-2440

(408) 721-5007

Email Contact

invest.group@nsc.com


    
    
    NATIONAL SEMICONDUCTOR CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
    (In millions, except per share amounts)
    
    
                               Q3 FY10 Q2 FY10 Q3 FY09  YTD 2010   YTD 2009
                                 Three Months Ended      Nine Months Ended
                               -----------------------  -------------------
                               Feb. 28, Nov. 29, Mar. 1, Feb. 28,   Mar. 1,
                                 2010    2009     2009     2010      2009
                               -----------------------  -------------------
    
    Net sales                   $361.9  $344.6  $292.4  $1,020.9  $1,179.6
    Cost of sales                118.2   119.6   124.3     360.0     426.9
                                         -----      -----      -----          -----          -----
        Gross  margin                                  243.7      225.0      168.1          660.9          752.7
        
        Research  and  development            69.0        68.2        72.9          202.5          254.1
        Selling,  general  and
          administrative                              81.7        81.0        66.5          235.7          217.8
        Severance  and
          restructuring  expenses
          (recovery)                                        6.4          0.7        (1.4)          12.8            27.8
        Other  operating  expense
          (income),  net                                  0.6          1.1        (0.2)          (0.3)          (0.4)
                                                                      ---          ---        ----            ----            ----
        
        Operating  expenses                      157.7      151.0      137.8          450.7          499.3
                                                                  -----      -----      -----          -----          -----
        
        Operating  income                            86.0        74.0        30.3          210.2          253.4
        
        Interest  income                                0.4          0.4          2.0              1.3              9.6
        Interest  expense                          (14.8)    (15.0)  (18.7)          (45.5)        (55.7)
        Other  non-operating
          income  (expense),  net                  0.8          2.0          1.0              6.1          (14.1)
                                                                      ---          ---          ---              ---          -----
        
        Income  before  taxes                      72.4        61.4        14.6          172.1          193.2
        Income  tax  expense
          (benefit)                                        19.2        14.4        (6.5)          42.1            56.2
                                                                    ----        ----        ----            ----            ----
        Net  income                                      $53.2      $47.0      $21.1        $130.0        $137.0
                                                                  =====      =====      =====        ======        ======
        
        Earnings  per  share:
              Basic                                          $0.22      $0.20      $0.09          $0.55          $0.60
              Diluted                                      $0.22      $0.20      $0.09          $0.54          $0.58
        
        
        Selected  income
          statement  ratios  as  a
          percentage  of  sales:
        
              Gross  margin                              67.3%      65.3%      57.5%          64.7%          63.8%
              Research  and  development      19.1%      19.8%      24.9%          19.8%          21.5%
              Selling,  general  and
                administrative                        22.6%      23.5%      22.7%          23.1%          18.5%
              Net  income                                  14.7%      13.6%        7.2%          12.7%          11.6%
        
              Effective  tax  rate                  26.5%      23.5%      44.5%          24.5%          29.1%
        
        
 
         
        
        
        Percentage  change  in                Q3  FY10          Q3  FY10              YTD  FY10
          selected  items:                            vs                    vs                          vs
        Increase  (decrease)                  Q2  FY10          Q3  FY09              YTD  FY09
                                                                -------          -------              --------
        
        Net  sales                                        5.0%                23.8%                  (13.5%)
        Net  income                                    13.2%              152.1%                    (5.1%)
        Diluted  earnings
          per  share                                    10.0%              144.4%                    (6.9%)
        
 
         
        
        
        
        NATIONAL  SEMICONDUCTOR  CORPORATION
        CONDENSED  CONSOLIDATED  BALANCE  SHEETS  (Unaudited)
        (In  millions)
        
                                                                                    Feb.  28,                    May  31,
                                                                                        2010                          2009
                                                                                    --------                    -------
        ASSETS
        Current  assets:
              Cash  and  cash  equivalents                      $868.6                      $700.3
              Receivables                                                      87.4                          71.7
              Inventories                                                    113.9                        134.6
              Deferred  tax  assets                                      73.0                          72.6
              Other  current  assets                                  112.9                        108.0
                                                                                        -----                        -----
        
        Total  current  assets                                    1,255.8                    1,087.2
        
        Net  property,  plant  and
          equipment                                                            419.2                        461.8
        Goodwill                                                                  66.1                          61.5
        Deferred  tax  assets,  net                                258.5                        251.5
        Other  assets                                                        103.3                        101.3
                                                                                        -----                        -----
        Total  assets                                                  $2,102.9                  $1,963.3
                                                                                  ========                  ========
        
        LIABILITIES  AND  SHAREHOLDERS'  EQUITY
        Current  liabilities:
              Current  portion  of  long-
                term  debt                                                    $339.0                        $62.5
              Accounts  payable                                            45.8                          40.3
              Accrued  expenses                                          165.1                        144.6
              Income  taxes  payable                                    14.3                          28.2
                                                                                          ----                          ----
        
        Total  current  liabilities                              564.2                        275.6
        
        Long-term  debt                                                    906.2                    1,227.4
        Long-term  income  taxes
          payable                                                                169.3                        162.6
        Other  non-current
          liabilities                                                        115.9                        120.7
                                                                                        -----                        -----
        
        Total  liabilities                                          1,755.6                    1,786.3
                                                                                    -------                    -------
        
        Commitments  and  contingencies
        
        Shareholders'  equity:
              Common  stock  of  $0.50  par
                value                                                              119.0                        116.3
              Additional  paid-in-
                capital                                                          161.9                          67.6
              Retained  earnings                                        190.1                        116.8
              Accumulated  other
                comprehensive  loss                                  (123.7)                    (123.7)
                                                                                      ------                      ------
        
        Total  shareholders'  equity                            347.3                        177.0
                                                                                        -----                        -----
        Total  liabilities  and
          shareholders'  equity                                $2,102.9                  $1,963.3
                                                                                  ========                  ========
        
 
         
        
        
        NATIONAL  SEMICONDUCTOR  CORPORATION
        CONDENSED  CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS  (Unaudited)
        (In  millions)
        
                                                                                                        Nine  Months  Ended
                                                                                                    ---------------------
                                                                                                    Feb.  28,            Mar.  1,
                                                                                                        2010                  2009
                                                                                                    --------            -------
        Cash  flows  from  operating  activities:
        Net  income                                                                        $130.0                  $137.0
        Adjustments  to  reconcile  net  income  with
          net  cash  provided  by
          operating  activities:
            Depreciation  and  amortization                                  71.6                      92.0
            Share-based  compensation                                            49.9                      52.4
            Excess  tax  benefit  from  share-based
              payment  arrangements                                                  (0.2)                    (4.4)
            Tax  (expense)  benefit  associated  with
              stock  options                                                                (6.7)                      6.8
            (Gain)  loss  on  investments                                        (6.1)                    14.1
            Non-cash  restructuring  recovery                              (5.6)                    (0.5)
            Loss  (gain)  on  disposal  of  equipment                      1.0                      (0.3)
            Other,  net                                                                          0.9                        2.1
            Changes  in  certain  assets  and
              liabilities,  net:
                    Receivables                                                            (17.4)                    52.2
                    Inventories                                                              20.3                      (1.2)
                    Other  current  assets                                            (3.5)                      0.5
                    Accounts  payable  and  accrued  expenses          14.6                    (57.3)
                    Current  and  deferred  income  taxes                (15.5)                    30.3
                    Other  non-current  liabilities                          12.9                    (31.5)
                                                                                                        ----                    -----
        Net  cash  provided  by  operating  activities            246.2                    292.2
                                                                                                      -----                    -----
        Cash  flows  from  investing  activities:
        Purchase  of  property,  plant  and  equipment            (25.9)                  (75.7)
        Proceeds  from  sale  of  property,  plant  and
          equipment                                                                              2.0                        1.0
        Business  acquisition,  net  of  cash
          acquired                                                                              (4.8)                          -
        Funding  of  benefit  plan                                                  (1.5)                    (6.2)
        Redemption  and  net  realized  losses  of
          benefit  plan                                                                        7.6                      10.4
        Other,  net                                                                            (2.2)                      0.7
                                                                                                        ----                        ---
        Net  cash  used  in  investing  activities                    (24.8)                  (69.8)
                                                                                                      -----                    -----
        Cash  flows  from  financing  activities:
        Repayment  of  bank  borrowing                                        (46.8)                  (47.0)
        Payment  on  software  license  obligations                  (6.3)                          -
        Excess  tax  benefit  from  share-based
          payment  arrangements                                                        0.2                        4.4
        Minimum  tax  withholding  paid  on  behalf  of
          employees  for  net  share  settlements                        (1.7)                    (0.2)
        Issuance  of  common  stock                                                59.5                      35.1
        Cash  payments  in  connection  with  stock
          option  exchange  program                                                (1.3)                          -
        Purchase  and  retirement  of  treasury  stock                    -                  (128.4)
        Cash  dividends  declared  and  paid                              (56.7)                  (46.0)
                                                                                                      -----                    -----
        Net  cash  used  in  financing  activities                    (53.1)                (182.1)
                                                                                                      -----                  ------
        Net  change  in  cash  and  cash  equivalents                168.3                      40.3
        Cash  and  cash  equivalents  at  beginning  of
          period                                                                                700.3                    736.8
                                                                                                      -----                    -----
        Cash  and  cash  equivalents  at  end  of
          period                                                                              $868.6                  $777.1
                                                                                                    ======                  ======
        
 
         
        
        
        
        PART  I.    FINANCIAL  INFORMATION
        EARNINGS  PER  SHARE  (Unaudited)
        (In  millions,  except  per  share  amounts)
        
                                                              Q3  FY10  Q2  FY10  Q3  FY09    YTD  2010      YTD  2009
                                                                  Three  Months  Ended            Nine  Months  Ended
                                                              -----------------------    -------------------
                                                              Feb.  28,  Nov.  29,  Mar.  1,  Feb.  28,      Mar.  1,
                                                                  2010        2009          2009          2010            2009
                                                              -----------------------    -------------------
        
        Net  income  used  in
          basic  and  diluted
          earnings  per  share
          calculation                                $53.2        $47.0      $21.1        $130.0        $137.0
        
        Earnings  per  share:
              Basic                                        $0.22        $0.20      $0.09          $0.55          $0.60
              Diluted                                    $0.22        $0.20      $0.09          $0.54          $0.58
        
        Weighted-average  shares
          outstanding:
              Basic                                        237.3        236.6      228.4          235.8          228.7
              Diluted                                    242.5        241.0      231.3          240.5          235.5
        
        
        
 
         
        
        OTHER  FINANCIAL  STATEMENT  DETAIL
        (In  millions)
        
                                                              Q3  FY10  Q2  FY10  Q3  FY09    YTD  2010      YTD  2009
                                                                  Three  Months  Ended            Nine  Months  Ended
                                                              -----------------------    -------------------
                                                              Feb.  28,  Nov.  29,  Mar.  1,  Feb.  28,      Mar.  1,
                                                                  2010        2009          2009          2010            2009
                                                              -----------------------    -------------------
        
        Other  operating  expense
          (income),  net:
              Net  intellectual
                property  income                      $-            $-          $(0.2)          $-            $(0.4)
              Litigation  settlement              -          1.5                  -        (0.5)                  -
              Other                                          0.6        (0.4)                -          0.2                    -
                                                                  ---        ----              ---          ---                ---
        Total  other  operating
          expense  (income),  net            $0.6        $1.1          $(0.2)    $(0.3)          $(0.4)
                                                                ====        ====          =====      =====            =====
        
        Other  non-operating
          income  (expense),  net:
              Gain  (loss)  on
                investments                          $0.8        $2.0            $1.0        $6.1          $(14.1)
                                                                ----        ----            ----        ----          ------
        Total  other  non-operating
          income  (expense),  net            $0.8        $2.0            $1.0        $6.1          $(14.1)
                                                                ====        ====            ====        ====          ======
 

1 | 2  Next Page »



Review Article Be the first to review this article
SolidCAM: Program your CNCs directly inside your existing CAD system.


Featured Video
Editorial
Jeff RoweJeff's MCAD Blogging
by Jeff Rowe
Re-Use Your CAD: The ModelCHECK Handbook
Jobs
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
GIS Analyst II for Air Worldwide at Boston, MA
Upcoming Events
Design & Manufacturing, Feb 7 - 9, 2017 Anaheim Convention Center, Anaheim, CA at Anaheim Convention Center Anaheim CA - Feb 7 - 9, 2017
Innorobo 2017 at Docks de Paris Paris France - May 16 - 18, 2017
Display Week 2017 at Los Angeles Convention Center 1201 S Figueroa St Los Angeles CA - May 21 - 26, 2017



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation GISCafe - Geographical Information Services TechJobsCafe - Technical Jobs and Resumes ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy Advertise