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| Friday, December 08, 2006 |
Chip maker National Semiconductor Corp. said Thursday its second-quarter profit fell 20 percent, dragged by sluggish sales to distributors and lower foundry revenue.
Income for the quarter was $91.4 million, or 27 cents per share, down from $114.7 million, or 32 cents per share, last year.
Quarterly revenue fell 8 percent to $501.6 million from $544 million last year.
Analysts polled by Thomson Financial expected the company to post earnings, on average, of 27 cents per share on $501.5 million in revenue.
"While customer end demand did not demonstrate the seasonal uptick we usually see this time of year, the revenue decline this quarter was driven by inventory reductions at our distributors and some of our customers," said Brian L. Halla, chairman and chief executive officer.
Looking forward, the company projected third-quarter revenue would drop 8 percent to 11 percent sequentially from the second quarter, implying revenue of $446.4 million to $461.5 million. Wall Street is currently looking for $495.1 million in revenue.
The company also expects third-quarter margins to decline slightly in the third quarter.
Shares of the company fell 88 cents, or 3.6 percent, to $23.92 on the New York Stock Exchange. |
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