National Semiconductor Corp. (Santa Clara, CA) lowered its revenue guidance for its fiscal second quarter. The new guidance for the quarter calls for revenues to range from $445 million to $450 million, down about 18% to 19% sequentially. During its first-quarter earnings conference call, the company had forecast revenues for the second quarter to be down 8% to 10% sequentially.
National also indicated that inventory and backlog adjustments from distributors and customers were expected to continue through the second quarter and that revenue guidance assumed some sequential incrase in the amount of turns orders arising from expected higher seasonal activitiy. Gross margin percentage under the revised revenue outlook is expected to range from 49% to 50%, down from the original guidance of approximately 51%.
"Distributors have been more aggressive in their efforts to reduce inventories, especially in Europe and Asia," reported the company. "In addition, distributor resale rates of National Semiconductor product have not picked up through October, which is not typical for the holiday season."
