National Semiconductor Corp is warning that sales and earnings per share for the company’s fourth fiscal quarter, ending May 31, and the first quarter of fiscal 1999, ending August 30, may be below analysts’ expectations. The Santa Clara, California-based company now expects sales for the fourth quarter to fall as much as 20% from the year-ago quarter’s $599m (about $480m), which will leave it with an operating loss. And given the current limited projections of first quarter demand it reckons it’s likely there will also an operating loss for that quarter. NatSemi is blaming inventory corrections in the personal computer market, with many of its customers slowing their factory build rates. Although its customers have said they should have completed the corrections in the June quarter, the company has yet to see a subsequent improvement in order rates. Another reason being given for the slowdown was related to product transition issues that affected the company’s LAN business. The transition issues are expected to last through the summer and up to the launch of the new 3.3-volt Phyter-based products in the fall.
