National Semiconductor Reports Earnings of 37 Cents Per Share Excluding One-Time Gains for Second Quarter of Fiscal 2000 - Company Financial Information

Edge: Work-Group Computing Report, Dec 13, 1999

National Semiconductor Corporation Thursday reported net earnings of $70.4 million, or 37 cents per share, on sales of $513.9 million for the second quarter of fiscal 2000, which ended Nov. 28, 1999. This number excludes net one-time after tax gains of $21.6 million. Including these one-time gains the company had net income of $92.0 million or 49 cents per share. In the comparable quarter of fiscal 1999, which ended Nov. 29, 1998, the company reported a net loss of $48.6 million, or 29 cents per share, on sales of $510.1 million, also excluding one-time items.

"This quarter gets us off to a good start, not only from the overall market robustness but also as a direct result of our strategic positioning and our solid execution on cost initiatives," said Brian L. Halla, chairman, president and CEO. "Bookings, sales and earnings were well up, led by our analog business," Halla added.

Summary of results
3 months ended:                      Nov. 28, 1999   Nov. 29, 1998

Net sales                                   $ 513.9       $ 510.1
Net income (loss)                           $  92.0       $ (94.4)
Net income (loss) excluding one-time items  $  70.4       $ (48.6)
Earnings (loss) per share diluted           $   0.37      $  (0.29)
    excluding one-time items

All figures in millions of dollars, except per share amounts

The net gains from one-time items consisted of after tax gains of $28.4 million, or $29.9 million pre-tax, related to the sale of the Cyrix PC processor business and release of an excess restructuring accrual for Greenock, Scotland, offset partially by an after tax $6.8 million extraordinary charge resulting from the early repayment of $259 million in convertible bonds during the quarter.

Excluding the Cyrix PC processor business sold at the beginning of the quarter, revenues grew 11 percent over Q1, led by an 11 percent growth in the analog segment.

National reported that worldwide bookings grew 43 percent over last year's second quarter and grew 18 percent over the August quarter of the current fiscal year. Monthly bookings improved throughout the second quarter with the November monthly run rate at the highest level in the last two years. Every region grew orders significantly compared with last year and with the August quarter. Bookings significantly exceeded billings.

Second quarter Analog segment bookings were up approximately 60 percent compared with last year. Orders were particularly strong for Power Management, Amplifiers and Wireless Application Specific products. Analog orders grew in the mid-teen percentage range over the August quarter. Information Appliance segment orders also increased by nearly 50 percent compared with last year, and in the high 30-percent range compared with the first quarter of fiscal 2000. Historical order comparisons exclude all orders for Cyrix PC processors.

"Our ongoing strong bookings make me increasingly confident that we can offset the usual holiday seasonal weakness and sequentially grow sales in our third fiscal quarter," Halla said. "Our excellent position in this market, coupled with lower operating expenses and increasing factory efficiencies should drive continued improvement in gross margins and earnings per share," he added.