The company saw lower sales during its second fiscal quarter as demand for its mobile phone chips was flat during the quarter instead of the usual increase leading up to the holiday season.
While customer end demand did not demonstrate the seasonal uptick we usually see this time of year, the revenue decline this quarter was driven by inventory reductions at our distributors and some of our customers, said National Semi chief executive Brian Halla, in a statement. Responding to this, we were able to bring down our inventories and still hold gross margins at almost 59%.
The company earned $91.4mi, or 27 cents a share, in the quarter compared to $114.7m, or 32 cents, a year ago. Revenue fell 8% to $501.6m.
Analysts had expected National Semi to report a profit of $91.3m, or 27 cents, on revenue of $501.2m.
Shares in the Santa Clara, California-based company fell more than 3.5% to close at $23.92 on the Nasdaq following the news.
