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) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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