National Semiconductor Reports Results for Third Quarter Fiscal 2010

National's third quarter sales were 5 percent higher than the second quarter of fiscal 2010, when the company reported $345 million in sales, and 24 percent higher than the $292 million reported in last year’s third fiscal quarter. There were 13 weeks in National’s second and third quarters of fiscal 2010 and 14 weeks in the third quarter of fiscal 2009. Stronger demand for National’s analog products in industrial markets, served primarily through distributors, drove the increase in third quarter revenues, while sales to wireless handset customers were down seasonally following the holidays.

Third quarter net income of $53.2 million, or 22 cents per diluted share, was an increase from the $47.0 million, or 20 cents per share, in the second quarter of fiscal 2010. Third quarter fiscal 2010 results included a pre-tax $6.4 million restructuring charge. In last year's third quarter, National reported net income of $21.1 million, or 9 cents per share, which included approximately $11 million of discrete income tax benefits.

Stronger product mix from higher sales into industrial markets drove gross margin improvement in the quarter. In addition, the company continued to improve its manufacturing cost performance. Gross margin of 67.3 percent in the third quarter increased from the 65.3 percent gross margin achieved in the second quarter of fiscal 2010 and the 57.5 percent gross margin reported one year ago.
Bookings for Q3, Fiscal 2010

National’s total company bookings increased 5 percent sequentially, as order rates increased from direct OEM customers as well as from distributors. Bookings exceeded billings in the quarter.

Driving revenue growth is our new charter here at National Semiconductor, said Don Macleod, National’s president and chief executive officer. Our sequential and year-on-year revenue growth demonstrates top-line improvement, driven by both our core analog business and traction in several new emerging areas.