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UPDATE 1-Nat Semi cuts revenue view, plans job cuts
November 12, 2008 / 9:57 PM / in 9 years

UPDATE 1-Nat Semi cuts revenue view, plans job cuts

(Adds outlook details)

NEW YORK, Nov 12 (Reuters) - National Semiconductor Corp (NSM.N) cut its expectations for fiscal second quarter revenue on Wednesday, citing weakness in wireless and other industries, and it said it would reduce its workforce by almost 5 percent to cut costs.

The analog chip maker forecast sales for the quarter ending Nov. 23 in a range of $420 million to $425 million compared with its previous expectation, announced on Sept. 5, for revenue of $470 million to $480 million.

The company, which currently employs about 7,000 people worldwide, said it would cut about 330 jobs, primarily in non- manufacturing positions and would take a third-quarter charge of $30 million as a result.

National Semiconductor blamed lower-than-expected sales to mobile phone customers, which brought about a third of its first quarter sales, and lower shipments to distributors for customers across a broad range of industries and markets.

“The global business environment has deteriorated significantly since the beginning of the quarter. New order rates are currently running at a level significantly below what the company saw in the first quarter,” it said in a statement.

As a result of the job cuts, National Semiconductor said it hopes to save $11 million to $13 million a quarter, of which it expects to see a large part in the fiscal third quarter and the remainder in the fourth quarter. (Reporting by Sinead Carew; Editing by Andre Grenon; email: sinead.carew@thomsonreuters.com +1 646-223-6186))

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