UPDATE 3-National Semi net lower; sales, EPS top expectations
(Adds comments from CEO, conference call comments, updates stock price)
SAN FRANCISCO, June 5 (Reuters) - Analog chipmaker National Semiconductor Corp (NSM.N) on Thursday posted a lower fourth quarter net profit, but revenues and per share earnings topped expectations as it sold more profitable chips, and shares rose almost 9 percent.
The company also said that orders in the just-reported quarter rose 12 percent from the prior period and were driven by higher orders from the distribution channel and higher bookings for wireless handsets and other personal mobile devices.
"They've done well given all the head-winds in the handset markets with excess inventories earlier in the quarter, especially in China," said Tayyib Shah, an analyst with Longbow Research. "It seems like their handset business is coming back."
National Semiconductor, whose microchips are used in everything from cars to cell phones and in the aerospace industry, said net income for its fourth fiscal quarter declined to $83.2 million from $90.1 million.
Per share earnings rose to 34 cents a share, on fewer shares outstanding, from 28 cents a share a year ago.
Revenue rose to $462.0 million from $455.9 million. Per-share results topped analyst expectations of 27 cents per share and revenue topped estimates of $449.5 million, according to Reuters Estimates.
"It looks like we weathered through the bottom of the cycle pretty well," said Chief Executive Brian Halla on a conference call to discuss the quarterly results.
When National last reported results in March, it forecast sales for the fourth quarter of $440 million to $460 million, a range that Halla told Reuters should be achievable.
"I could see it going above the high end of the range," Halla told Reuters in March when it reported third-quarter results. "The last thing I could see happening is going below the low end of the range."
On April 29, National Semi said that it was cutting 130 positions. It took a charge in the fourth quarter of $9 million before taxes related to severance and the results also included about $6 million in tax benefits.
"Handsets have always been pretty stable and we've seen strength that's been steadily improving," Halla said by telephone, noting that weakness in January was related more to specific phone models National Semi's chips went into rather than fundamental weakness in that industry.
Halla also said that Asia continues to be National Semi's fastest growing market, particularly China, although Japan is still a "bit lackluster, but that's been the case for some while."
For the current, first quarter, National said it expects revenue of $460 million $475 million. Analysts currently expect first-quarter revenue of $451.4 million.
"If oil on the other hand hits $200 a barrel your guess is as good as mine," Halla said on the call. Continued...
