Our mid-quarter update to our outlook is scheduled this quarter for December 8. At that time, we expect to adjust the revenue and earnings guidance ranges as appropriate. This is a complex earnings report primarily because we have a soft demand environment and a significant acquisition with accounting implications. We've taken extra effort to provide clarity and transparency.In today's call, we'll give you an update on our progress with the National acquisition and explain the associated costs and accounting. We'll cover the demand environment for the third and fourth quarters, and we'll provide detailed transitions for earnings per share. On our website, we also provide you additional detail to assist in understanding the combination of TI and National. We have closed the National acquisition on September 23. In addition to the usual activities of integration, the first leg of a World Tour has been completed through Asia. Our Analog manager, Gregg Lowe, and his team of National business managers have already held many meetings with the TI's sales force, with distributors and most importantly, with customers. The power of the combined portfolio is being confirmed. Distributors are committing more dedicated resources to TI and the strong analog portfolio. Customer feedback is almost universal, where National's design-in position had been shrinking over the past 3 years due to their commercial posture. Customers nonetheless love the products and are ready to immediately reengage. The World Tour will continue over the next 3 weeks as we aggressively work to show customers the benefits of our combined portfolios. Let's move now to the demand environment, which was weak in the third quarter. Revenue was flat sequentially in quarter, when historically it has grown on average about 7%. That being said, we were encouraged that revenue landed above the high end of our range of expectations due to a stronger-than-expected month of September. Our book-to-bill ratio was below one for the quarter, and we expect revenue to again decline more than seasonally in the fourth quarter. Even with this outlook, we see conditions that suggest the bottoming process has begun. After a sharp drop in July, the rate of decline in orders slowed considerably in August and September. Lead times are short, and inventories at distributors and OEMs are lean.
On average, our semiconductor product revenue in a fourth quarter would be about flat sequentially. And our total revenue would decline about 3% due to the seasonal pattern in calculator sales. This fourth quarter, excluding National, we expect our semiconductor revenue to decline about 7% at the middle of our range, and total revenue to be down about 10%. When including a full quarter of National's revenue, semiconductor revenue should be about flat at mid-range and the company down about 3% because of calculator seasonality.Our acquisition of National was an important step in our strategy to further strengthen our position in the analog semiconductor market. National's 12,000 products enhance our product portfolio. TI had 30,000 analog products before the acquisition and will introduce about 500 new products in 2011. These additions to our portfolio meaningfully accelerate our product strategy. Similarly, the addition of 5,000-plus employees, many of whom have deep and hard-to-find expertise in analog design, analog process technology, packaging and manufacturing, will enhance our capabilities. Finally, National's 3 factories have lots of room for growth, which means we can focus our energies on customers and on driving growth from this portfolio instead of the unproductive task of moving products between factories that creates a lot of overhead expense and customer disruption. We have included a supplemental chart on our website that details how much the acquisition contributed to our financial results. We closed the acquisition on September 23 and therefore, had 7 days of its results consolidated into TI's and our Analog segment's third quarter. The revenue contribution over this 7-day period was $18 million, and there was $2 million of associated operating profit consolidated into our Analog segment under the organizational name, Silicon Valley Analog. Silicon Valley Analog, or SVA as we abbreviate it, is now a fourth component of our Analog segment, along with High Performance Analog, Power Management and High Volume Analog & Logic. Of course, the $2 million of operating profit does not include acquisition-related charges, which are included in our Other segment. Kevin will review the acquisition-related charges and the impact of the acquisition on some of our balance sheet lines in a few minutes. Read the rest of this transcript for free on seekingalpha.com