Updated from 10:06 a.m.

Diversified chipmaker

National Semiconductor

(NSM)

was up 3.5% at midday, despite warning it would report fourth-quarter results of between a 4-cent per-share loss and break-even, on revenue down 16% to 18% from the third quarter. Analysts were expecting the company to post earnings of 4 cents a share, according to

Thomson Financial/First Call

.

The company blamed the weak economy for a drop in sales in the quarter, and said it was cutting about 1,100 jobs, or about 10% of its workforce.

Following the warning, Robertson Stephens cut its earnings and revenue forecast for 2001 and slashed its 2002 earnings estimate to 18 cents a share from 60 cents.

The

Semiconductor Index

(SOX)

was down 2.2%.