National Semiconductor Reports Results for First Quarter Fiscal 2010

The sequential improvement in National’s first quarter sales was driven by increased demand for the company’s energy-efficient analog products, especially from distributors serving broad industrial markets. Net income of $29.8 million, or 13 cents per diluted share, was an increase from the net loss of $64 million and net loss of 28 cents per share in the fourth quarter of fiscal 2009. Fourth quarter fiscal 2009 results included $116 million of pre-tax charges related to restructuring expenses.

Gross margin of 61.1 percent in National’s first quarter was up from the 58.3 percent gross margin achieved in the fourth quarter of fiscal 2009 but down from the record-high 66.0 percent gross margin reported in the first quarter of fiscal 2009. Sequential gross margin improvement in the first quarter was due to improved product mix, higher production volume and benefits realized from sooner-than-expected ceasing of production at National’s assembly and test facility in Suzhou, China.