TSC Staff
Third-quarter profit slipped at National Semiconductor (NSM Quote - Cramer on NSM - Stock Picks) despite higher revenue, and the company warned that fourth-quarter sales would come in below current Wall Street estimates.
The Santa Clara, Calif., company said Thursday that net income fell to $71.2 million from $73.7 million a year earlier, while per-share earnings rose to 28 cents from 22 cents on a lower share count. The latest quarter included $19.6 million of pretax severance and restructuring expenses related to a previously announced factory modernization effort. The quarter also included about $11 million of discrete tax benefits that were recognized in the quarter. Analysts had expected earnings of 23 cents a share. Third-quarter sales rose to $453.4 million from $431 million, shy of Wall Street estimates of $457.4 million. Gross margin fell sequentially to 64.3% from the second quarter's 64.4%, but was up from last year's third quarter, when the company had a gross margin of 59.85%. "Our business was impacted by lower-than-expected shipments into the wireless handset and personal mobile device markets; however, our margins held up well," said Brian L. Halla, National's chairman and CEO. For the fourth quarter, National Semi said it expects sales of $440 million to $460 million, below the Thomson Financial analyst estimate of $470.3 million. Shares of National Semi rose more than 7% in recent after-hours trading to $17.42.
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