National Semiconductor Corp. reported sales of $390.4 million and net income of $83.5 million, or 34 cents per diluted share, for the second quarter of fiscal 2011, which ended Nov. 28, 2010. National’s second quarter sales were 5% lower than the $412.0 million in sales reported in the first quarter of fiscal 2011 due to lower demand from OEMs and distributors in all regions. Sales in the second quarter of fiscal 2011 were 13% higher than the $344.6 million reported in the second quarter of fiscal 2010.
Second quarter net income of $83.5 million, or 34 cents per diluted share, was a decrease from the $88.8 million, or 36 cents per diluted share, in the first quarter of fiscal 2011. One year ago, National reported net income of $47.0 million, or 20 cents per diluted share. Gross margin of 68.9% decreased from 70.9% in the first quarter of 2011, which had set a record for the company. National reported gross margin of 65.3% in the second quarter of fiscal 2010.
"Revenues in our second quarter were impacted by two factors. First, although distributor resales of our products were about flat sequentially, we shipped approximately $25 million less to them than in the preceding quarter. Secondly, we saw, in aggregate, slower demand from mobile phone customers than we typically see in this seasonally strong, pre-holiday season quarter," said Don Macleod, National’s Chief Executive Officer. "As this inventory correction by our customers and distributors works its way through our business this quarter, we will continue to invest in our revenue growth initiatives. This should position us to show amplified revenue growth as we emerge from what we see as a temporary supply chain adjustment."
