November 7, 2006 -- National Semiconductor Corporation (NYSE:NSM) today announced that it is lowering its revenue outlook for the second quarter of fiscal 2007, ending November 26, 2006. The company now anticipates that revenue for the second quarter of fiscal 2007 will be down approximately 7 percent to 8 percent sequentially from the $541.4 million in revenues that were achieved in the first quarter of fiscal 2007. The company previously guided on September 7, 2006, that second quarter of fiscal 2007 revenues were expected to be down 2 percent to 5 percent sequentially, of which approximately 4 percentage points of decline was anticipated for lower-margin foundry revenue from the previously disposed of Cordless and PC Super I/O businesses.
Of the 7 percent to 8 percent sequential revenue decline that is now anticipated, approximately 4 percentage points is due to decreased foundry revenue as originally expected. The downward revision in revenue outlook is primarily due to lower-than-expected shipments to wireless handset customers.
National anticipates gross margin percentage for the second quarter of fiscal 2007 to be between 59 percent to 60 percent, including stock compensation expenses. The company had originally guided that its second quarter fiscal 2007 gross margin percentage was expected to be above 60 percent, which included estimated stock compensation expenses of approximately $6 million to $7 million.
National’s second quarter fiscal 2007 financial announcement and conference call are scheduled for December 7, 2006, at which time the company will discuss results in more detail as well as the outlook for the third quarter of fiscal 2007.
About National Semiconductor
National Semiconductor, the industry's premier analog company, creates high performance analog devices and subsystems. National's leading-edge products include power management circuits, display drivers, audio and operational amplifiers, communication interface products and data conversion solutions. National's key analog markets include wireless handsets, displays and a variety of broad electronics markets, including medical, automotive, industrial, and test and measurement applications. Headquartered in Santa Clara, California, National reported sales of $2.16 billion for fiscal 2006, which ended May 28, 2006. Additional company and product information is available at www.national.com.
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