National Semiconductor Corp. reported sales of $281 million and a net loss of $64 million, or a loss of 28 cents per share, for the fourth quarter of fiscal 2009 which ended May 31, 2009. National’s fourth quarter of fiscal 2009 results included $116 million of pre-tax charges primarily for severance and asset impairments related to an action announced on March 11, 2009.
National’s fourth quarter fiscal 2009 sales of $281 million were 4% lower than the third quarter of fiscal 2009, when the company reported $292 million in sales and earnings of 9 cents per share. National’s third quarter of fiscal 2009 had 14 weeks, and National’s fourth quarter of fiscal 2009 had 13 weeks. Gross margin of 58.3% in National’s fourth quarter of fiscal 2009 was up from the 57.5% gross margin achieved in the third quarter of fiscal 2009.
Compared to last year, fourth quarter fiscal 2009 sales were down 39% from the $462 million reported in the fourth quarter of fiscal 2008. Fourth quarter loss per share of 28 cents was below the 34 cents of positive earnings per share recorded in the fourth quarter a year ago. Gross margin in the fourth quarter of fiscal 2009 was also lower than the 65.9% reported in the fourth quarter of fiscal 2008.
National’s total company bookings in the fourth quarter of fiscal 2009 increased by approximately 30% sequentially over the third quarter. This increase was attributable to increased orders from manufacturers of wireless handsets and other personal mobile devices as well as increased bookings from distributors who serve the broader electronics market. Bookings were up sequentially in all regions except Japan, with the highest%age increase occurring in the Asia Pacific region. Total company bookings exceeded billings in the fourth quarter.
Annual sales in fiscal 2009 were $1.46 billion compared to $1.89 billion in fiscal 2008. For fiscal 2009, National reported net income of $73 million, compared to net income of $332 million in fiscal 2008. Earnings per share for the year were 31 cents compared to $1.26 in fiscal 2008. National’s gross margin in fiscal 2009 was 62.7% compared to 64.4% in fiscal 2008. The company’s effective tax rate was 35.5% for fiscal 2009 compared to 26.4% for fiscal 2008. Return on invested capital for fiscal 2009 was approximately 15% compared to approximately 23% for fiscal 2008.
In the fourth quarter of fiscal 2009, National implemented restructuring actions designed to lower costs including the elimination of 850 positions worldwide and the planned closing of two manufacturing facilities. Fourth quarter fiscal 2009 net results included approximately $116 million in expenses primarily related to severance and asset impairments for the actions noted above, as well as $2.9 million of in-process research and development expense associated with the previously announced acquisition of ActSolar, Inc.
"Business conditions improved through the quarter. We saw increasing orders from our wireless handset customers as they began ramping production of new smartphone models," said Brian L. Halla, National’s Chairman and CEO. "We are well positioned to enable greater energy efficiency in a wide range of products with our analog and power management circuits."
