National Semi Guides Sales Lower - TheStreet

National Semi Guides Sales Lower

The top line will be up to 15% lower on a sequential basis.
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Updated from 4:18 p.m. EST

National Semiconductor

(NSM)

trimmed its sales guidance for its fiscal third quarter Monday, marking the company's third successive negative pre-announcement in as many quarters.

The Santa Clara, Calif., chipmaker said revenue in the three months ended Feb. 25 will be down approximately 14% to 15% sequentially from the second quarter's $501.6 million.

National Semi had initially projected a sequential decline of only 8% to 11%.

The company said the change owes to lower-than-expected shipments into the distribution channel, mainly in the Asia Pacific region "due to distribution resale activity being lower over the holiday period than was originally anticipated."

The revised outlook also reflects lower-than-expected shipments of display products during the third quarter.

National Semi said it was not changing its gross margin guidance of 58% to 59%, issued in December.

The company has pared back its revenue guidance ahead of the close of its two previous quarters, blaming slow sales to cell phone makers in each instance.

Shares of National Semi were recently halted for late trading.