UPDATE 3-National Semi forecasts top Street view

* FY Q4 rev $398.5 mln vs Street's $384.1 mln

* FY Q4 EPS 33 cents vs Street's 28 cents

* Sees FY Q1 rev $410 mln-$418 mln vs Street's $390.8 mln

* Shares up in after hours trading (Adds CEO's forecasts)

By Alexei Oreskovic

SAN FRANCISCO, June 10 (Reuters) - National Semiconductor Corp (NSM.N) delivered a margin and revenue forecast above Wall Street estimates, signaling that demand is bouncing back after an horrendous 2009 for the microchip industry.

Stock in the company rose 2 percent in extended trade, after rising more than 3 percent in the regular session. It swung to a profit in its fiscal fourth quarter, boosted by healthy chip sales to industrial and wireless handset customers.

The results were the latest indication that business in the highly-cyclical chip industry remained on track, despite investor concerns that growth would again tail off.

On Tuesday, chipmaker Texas Instruments Inc TXN.N provided a mid-quarter update in which it said profit and revenue would be at the high-end of its previous forecast thanks to strong demand for chips from industrial customers. [ID:nN08218836]

National Semiconductor said orders for chips exceeded billings during the fiscal fourth quarter -- a sign of healthy future demand -- with bookings coming from hardware vendors and distributor customers in all regions, particularly Europe. [ID:nSGE6590FQ]

Semiconductor stocks have been under pressure in recent months as investor fret about a potential build-up in chip inventories industry-wide, as well as concerns about effect of the European debt crisis.

"Like all of you I have my antenna raised for any signs of slowdown," Chief Executive Don Macleod said during a conference call with analysts on Thursday.

"At this time our indicators point to a continuation of revenue growth over the summer," he said.

The Santa Clara, California chipmaker said revenue in the three months ended May 30 totaled $398.5 million, up 42 percent year-over-year and above the average analyst expectation of $384.1 million according to Thomson Reuters I/B/E/S.

The company said that improvements in manufacturing efficiencies and utilization at its factories bumped gross profit margin up to 68.8 percent, from 67.3 percent in the fiscal third quarter.

National Semi forecast a gross margin of 69 to 70 percent in the fiscal first quarter ending August, a little above Wall Street's average estimate of 68.7 percent, as capacity utilization climbs to the low-70s from 65 percent in the fiscal fourth quarter.

LOOKING UP

The company said it expects revenue of $410 million to $418 million in its fiscal first quarter. Analysts expected first-quarter revenue of $390.8 million.

National Semiconductor reported a net profit of $79.2 million, or 33 cents a share, in the fiscal fourth quarter, beating the 28 cents in earnings per share expected by analysts.

In the year-earlier period, National Semiconductor reported a net loss of $63.7 million, or 28 cents a share, when the company incurred $116 million in restructuring charges.

In recent years, National Semiconductor has reorganized its business to focus on high-profit analog chips that control power management in electronic devices, shedding various business lines. The company's gross margin jumped from 59 percent of revenue in 2006 to 65.9 percent in its just-completed fiscal 2010 year.

But National Semiconductor's revenue has moved in the opposite direction, declining roughly 34 percent since 2006.

National Semiconductor shares, which are down roughly 14.5 percent this year, rose to $13.80 in after hours trading. (Reporting by Alexei Oreskovic; editing by Andre Grenon and Carol Bishopric)