National Semiconductor Profit Plunges

SANTA CLARA, Calif. (TheStreet) - Though National Semiconductor reported a 63% profit tumble in its 2010 first quarter, the chipmaker echoed positive demand sentiments from others and guided higher than expected for the next quarter.

After the market close on Thursday, National Semi said its second quarter would show sales between $325 million and $340 million, an uptick of 3% to 8% sequentially and higher than the $315.9 million currently forecast by many.

On Wednesday, Texas Instruments also boosted its guidance for the third quarter, saying analog chips should drive the better showing. Dutch-based ASML followed that up with its own upward adjustment to its sales outlook on Thursday.

"Demand was better than we expected, especially for our power management products going into broad industrial applications," National Semi CEO Brian Halla said of the quarter in a statement. "As a result, we were able to get our gross margins back above 60 percent."

National Semi's just completed results still managed to beat top and bottom-line estimates. Sales totaled $314.4 million during the quarter as compared to $456.6 million in the year-earlier quarter.

Profit fell to 29.8 million, or 13 cents per share, from $79.6 million, or 33 cents, last year. Results during the first quarter also included a $6 million restructuring charge from shuttered plants in Texas and China.