National Semiconductor Reports Results for Third Quarter Fiscal 2011

National Semiconductor Corp. reported sales of $343.9 million and net income of $59.4 million, or 24 cents per diluted share, for the third quarter of fiscal 2011, which ended Feb. 27, 2011.

National’s third quarter sales were 12% lower than the $390.4 million in sales reported in the second quarter of fiscal 2011 due to inventory adjustments in the distribution channel and seasonally lower shipments to wireless handset customers following the holiday sales period. Sales in the third quarter of fiscal 2011 were 5% lower than the $361.9 million reported in the third quarter of fiscal 2010.

Third quarter net income of $59.4 million, or 24 cents per diluted share, was a decrease from the $83.5 million, or 34 cents per diluted share, in the second quarter of fiscal 2011. One year ago, National reported net income of $53.2 million, or 22 cents per diluted share for the third quarter of fiscal 2010.

Gross margin of 66.5% decreased from 68.9% in the second quarter of 2011, driven by lower factory utilization in connection with the reduced sales volume. National reported gross margin of 67.3% in the third quarter of fiscal 2010.

National’s total company bookings in the third quarter of fiscal 2011 were approximately the same as in the preceding quarter. Bookings were up sequentially in the North America and Asia Pacific regions, and down in Europe and Japan. During the third quarter of fiscal 2011, billings exceeded bookings.

Third quarter fiscal 2011 results included a $6 million pre-tax impairment charge related to assets held for sale. This amount is included within the $8.2 million of total restructuring expenses associated with previously announced plant closures.