National Semiconductor Reports Results for First Quarter Fiscal 2011

National Semiconductor Corp. reported sales of $412.0 million and net income of $88.8 million, or 36 cents per diluted share, for the first quarter of fiscal 2011, which ended Aug. 29, 2010.

National’s first quarter sales were 3% higher sequentially from the $398.5 million in sales reported in the fourth quarter of fiscal 2010, and 31% higher than the $314.4 million reported in the first quarter of fiscal 2010.

First quarter fiscal 2011 sales increased sequentially due primarily to demand from wireless handset and industrial markets, the two largest markets served by National.

First quarter net income of $88.8 million, or 36 cents per diluted share, was an increase from the $79.2 million, or 33 cents per diluted share, in the fourth quarter of fiscal 2010. National reported net income of $29.8 million, or 13 cents per diluted share, in the first quarter of fiscal 2010.

First quarter gross margin of 70.9% set a new record for the company, driven by improved manufacturing cost efficiencies from higher capacity utilization and benefits from manufacturing consolidation completed in the fourth quarter of fiscal 2010. National reported gross margin of 68.8 percent in the fourth quarter of fiscal 2010 and 61.1 percent in the first quarter of fiscal 2010.

"Our business model is working well with another quarter of revenue growth, 70% gross margins and over 36% operating margins," said Don Macleod, National’s chairman and chief executive officer. "However, in the near term, slower growth in our end markets and distribution channel, along with some likely inventory reduction, will mute the seasonal growth that we would normally see in our business during this time of the year."