National Semi's Sales, Outlook Slip

The chipmaker says sales fell 9% in the second quarter and that it expects a 30% drop in revenue for the third quarter.
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National Semiconductor (NSM) said late Monday afternoon that its sales fell 9% in the second quarter and predicted a 30% drop in revenue for the third quarter.

The chipmaker reported sales of $422 million and net income of $34 million, or 14 cents a share, for the quarter that ended Nov. 23, down from $466 million in sales, $80 million in net income and 33 cents a share for the first quarter. Analysts had expected EPS of 21 cents and revenue of $427.32 million.

In the year-ago second quarter, National Semi earned $90.6 million, or 33 cents a share.

National Semi forecast a 30% drop in revenue for the third quarter, suggesting it expects sales of $295.4 million for that period.

Analysts had predicted third-quarter revenue of $385 million.

National Semi's shares closed up 3 cents, or 0.3%, at $10.29 Monday but were falling 7.2% to $9.55 in after-hours trading.

This article was written by a staff member of TheStreet.com.