COMPANY PRESS RELEASE: National Semiconductor Corporation has reported revenues of $366.5 million for the second quarter of fiscal 2002, an increase of 8 percent from the first quarter.
The company recorded a net loss of 26 cents per share for the quarter, which ended November 25, 2001, compared with a first quarter loss of 31 cents per share on revenues of $339.3 million. In last year’s second quarter National reported net income of $106.7 million, or 56 cents per share, on revenues of $595.0 million.
Despite a tough environment during the second quarter, we grew sales 8 percent and continued making progress on gaining incremental business from our major customers in the handset and display markets, said Brian L. Halla, National’s chairman, president and chief executive officer. National’s analog portfolio continues to position us well in the right markets with the right partners.
National’s turns orders (those requested for delivery within the same quarter) continued to strengthen throughout the second quarter. This factor, combined with a strong analog product mix and efficient manufacturing, enabled the company to increase gross margins by 3 percentage points to 35.3 percent. National also reduced its inventories and increased its cash reserves to $811 million, while maintaining an essentially debt-free balance sheet.
National’s worldwide second quarter bookings grew by 5 percent over the summer quarter. Most of the increase came from improvements in orders for analog products used in wireless handsets and from seasonal orders in personal computer markets. Bookings increased sequentially in all regions except Japan. Year-to-year, overall bookings declined by 34 percent.
National’s guidance is for third quarter revenues to be comparable with the second quarter levels, in the range of $350 to $370 million. Gross margins and operating expenses are also targeted to be in line with second quarter results.
In the current environment, National is highly focused on driving new incremental revenue programs with our key customers, Halla said. As broad-based demand returns, these programs and the leverage we get from our world class manufacturing will accelerate National’s growth.