This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Nat Semi to Cut 26% of Workforce

Updated from 10:09 a.m.

SAN FRANCISCO -- National Semiconductor's (NSM - Get Report) fiscal third quarter wasn't particularly pretty, and the company is bracing for further sluggishness in demand.

The Santa Clara, Calif., chipmaker said Wednesday that it will slash 26% of its workforce in response to economic conditions, cutting more than 1,700 jobs.

Nat Semi's chairman and CEO, Brian L. Halla, put it quite succinctly in a press release: "The worldwide recession has impacted National's business as demand has fallen considerably."

The company's stock was down 27 cents, or 2.3%, to $11.43 in recent trading.

The demand dropoff was evidenced in the company's third-quarter results. Profit fell to $21.1 million, or 9 cents a share, from $72.9 million, or 29 cents a share, a year earlier.

The good news is that beat Wall Street's average expectation for a loss of 5 cents a share.

Sales, however, plunged 36% from a year earlier to $292.4 million, essentially in line with analysts' forecasts.

For the fourth quarter, Nat Semi said it expects sales to fall by 5% to 10% sequentially as "the company's distribution channel continues to be negatively impacted by the weak economy."

That implies revenue of $263 million to $278 million, below analysts' consensus expectations of $292.6 million.

As part of its restructuring, the company will cut about 850 positions in product lines, sales and marketing, manufacturing and support functions.

In addition, the company will close its assembly and test plant in Suzhou, China and its wafer fabrication plant in Arlington, Texas. The closures will occur over several quarters, eventually resulting in another 875 jobs lost.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
NSM $25.02 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs