National's Sales, Earnings Rise

SAN JOSE, Calif. -- National Semiconductor Corp. reported sales of $362 million in the quarter, up 5 percent from $345 million in the previous quarter and up 24 percent from $292 million reported in last year's third fiscal quarter. Third quarter net income of $53.2 million, or 22 cents per diluted share, was an increase from the $47.0 million, or 20 cents per share, in the second quarter of fiscal 2010. Third quarter fiscal 2010 results included a pre-tax $6.4 million restructuring charge. In last year's third quarter, National reported net income of $21.1 million, or 9 cents per share, which included approximately $11 million of discrete income tax benefits. Stronger demand for National's analog products in industrial markets, served primarily through distributors, drove the increase in third quarter revenues, while sales to wireless handset customers were down seasonally following the holidays. "Driving revenue growth is our new charter here at National Semiconductor," said Don Macleod, National's president and chief executive, in a statement. "Our sequential and year-on-year revenue growth demonstrates top-line improvement, driven by both our core analog business and traction in several new emerging areas." National is projecting revenues to be between $375 million and $390 million, up approximately 4 to 8 percent sequentially, in the fourth quarter of fiscal 2010.