The inventory correction claimed another victim late Monday as
said that second-quarter revenue would decline by nearly 20%, about twice the amount it had expected.
The Santa Clara, Calif.-based chipmaker said it now anticipates revenue for the quarter ending in November to clock in between $445 million and $450 million, down between 18-19%.
On Sept. 9, the company had guided for a sequential sales drop-off of 8-10%.
Before today's warning, analysts were looking for $502 million in revenue, with earnings per share of 21 cents.
In September, National Semi said it expected the industrywide
inventory buildup in chips to depress demand somewhat in the second quarter. But at the time, the company expected that the amount of turns orders (orders placed and delivered within the quarter) would rise from the previous quarter, in line with usual preholiday activity.
On Monday, though, the company said turns orders have failed to pick up, and demand for chips used in Asian-made cell phones and display products also has stayed weak.
Also Monday, analog chipmaker
joined the growing corps of companies, including
that have cited inventory buildup as a factor that would continue to
weigh on revenue in the quarter under way.
National Semi will report second-quarter earnings on Dec. 9.
In regular trading, the stock closed off a penny to $16.69.