For the quarter that saw National Semiconductor Corp. (NSM) announcing massive job cuts, analysts are expecting a loss of $0.42 per share, on revenue of $272.40 million. The chipmaker's final-quarter results are due to be released after the market close today. In the year-ago quarter, the company had earned 34 cents per share on sales of $462 million.
National Semiconductor, which expanded into the solar business last year, recently tried to offset the swings in demand for chip machinery by expanding its energy efficient power efforts with acquisition of Act Solar. National Semiconductor is also working with US-based solar energy services provider and SunEdison LLC on field trials to optimise the energy output of solar arrays. Citing ongoing negative impact on its distribution channel, National Semiconductor had expected sales to decrease sequentially by 5% - 10% for the fourth quarter.
Global semiconductor industry has been reeling under the current economic meltdown, restricting consumer spending, since the end-user demand slowed down in late 2008. Semiconductor companies responded quickly to the changing market environment by initiating cost savings measures, curtailing production, and reducing inventory. The worldwide semiconductor market showed early signs of recovery in April, on the back of rising demand for PCs, phones and electronic devices that use chips.
Worldwide sales of semiconductors rose 6.4% to $15.6 billion in April from $14.7 billion in March, the Semiconductor Industry Association said in a statement. However, April sales came 25% below than last year's sales of $20.9 billion.
For 2009, Semiconductor Industry Association said, it expects worldwide sales of $195.6 billion, down 21.3% from $248.6 billion in 2008. SIA projects that sales will begin to rebound in 2010, with year-on-year growth of 6.5% to $208.3 billion, followed by 6.5% growth in 2011 to $221.9 billion.
Throughout the latest quarter, National Semiconductor has been aggressively cutting costs by eliminating jobs, reducing overall expenses and shifting more of its R&D investments towards new and emerging growth.
National Semiconductor said it will incur between $160 million and $180 million in charges, consisting of severances, asset impairments and other exit-related costs. Of the total charges, the company expects to record $130 million-$145 million in the fourth quarter of fiscal 2009 and the remaining in ensuing quarters.
The Santa Clara, California-based Chipmaker said it will cut 1,725 jobs, or 26% of its workforce, as it witnessed a 71% downturn in the third-quarter profit that totaled $21.1 million, or $0.09 per share, compared to $72.9 million, or $0.29 per share in the year-ago quarter. Net sales for the third quarter fell 36% to $292.4 million from $453.4 million in the prior year quarter.
Among others in the industry, Analog Devices Inc. (ADI) reported second-quarter net income of $51.8 million or $0.18 per share, down from last year's $133.1 million or $0.45 per share. Second-quarter revenues declined 27% to $475.0 million from $649.3 million in the same quarter last year. For the third quarter, the Norwood, Massachusetts-based company anticipates earnings from continuing operations of $0.17 - $0.19 per share, and revenue to be approximately flat on a sequential basis. The Street currently expects the company to report earnings of $0.20 per share for the third quarter.
Another peer, STMicroelectronics NV (STM) reported a wider net loss for the first quarter of $541 million or $0.62 per share, compared to $84 million or $0.09 per share in the year-ago quarter, dented by lower sales across wireless, automotive, and computer peripherals sector. Net revenues for the quarter decreased 33% to $1.66 billion from $2.48 billion in the prior year quarter, For the second quarter, the Geneva, Switzerland-based company expects revenues to be in the range of $1.73 billion to $1.93 billion, with analysts forecasting revenue of $1.84 billion.
The second- largest U.S. semiconductor maker Texas Instruments Inc. (TXN) said that higher restructuring charges and lower revenue across all segment dragged down its first-quarter profit to $17 million or $0.01 per share from $662 million or $0.49 per share in the prior year quarter. First-quarter revenue decreased 36% to $2.09 billion from $3.27 billion in the same quarter of last year.
For the second quarter of 2009, the Dallas, Texas-based company raised its earnings guidance to a range of $0.14 - $0.22 per share from its prior guidance of $0.01 - $0.15 per share. Revenue is now expected between $2.30 billion and $2.50 billion, up from earlier outlook of $1.95 billion - $2.40 billion. Wall Street analysts estimate earnings of $0.10 per share, on revenue of $2.21 billion.
Industry experts expect the global semiconductor industry to bottom out from its deep slump and take initial steps toward recovery in the June quarter, due to an anticipated rise in utilization rates. Technology research and advisory firm iSuppli estimates the utilization of semiconductor capacity to grow to 60% this quarter from 49% in the March quarter.
NSM is currently trading at $14.75, up 4 cents or 0.27%. In the past 52 weeks, the stock has been trading between $9.02 and $24.21.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.