NATIONAL SEMICONDUCTOR FORESEES REDUCED EARNINGS IN THIRD QUARTER

Feb. 2, 1998 -- National Semiconductor Corporation® today announced that sales and earnings per share for the company's third fiscal quarter ending March 1, 1998 may be below analysts' expectations. The company expects sales and earnings for the third quarter to decline from the second quarter of the current fiscal year. National's fiscal year ends May 31, 1998.

Shipments for the current quarter have been slowed by uncertainties within the Asia-Pacific markets and with some customers who sell into those markets from other regions. In particular, customers in Korea have slowed acceptance of deliveries for many products as they review the effects of the current financial crisis. In addition, National has seen an adjustment in delivery requests from our wireless communications customers for analog power management and application specific frequency synthesizer devices used in portable phones sold into Asia. The company views a large portion of this adjustment as being inventory related and expects to see shipments return to more normal levels as it goes through its fourth quarter.

National also expects sales from its recently acquired Cyrix business unit to decline in the third quarter. This is due to the company's difficulty in ramping up adequate volumes to meet demand during the quarter.

This outlook contains forward looking statements depended on a number of risks and uncertainties including such factors as, but not restricted to, new orders received and shipped during the remainder of the third quarter, the timely ramp up of new submicron production facilities, the degree of factory utilization, the successful sale of existing inventories, and the ramp up of recently introduced products. Other risk factors are included in the company Form 10Q for the quarter ended November 22, 1997 (see the Outlook section of Management's Discussion and Analysis of Results of Operations and Financial Conditions).

Site Map • About "Cookies" • National is ISO/TS16949 Certified • Privacy/Security Statement • Contact Us/Feedback RSS Feed  • Site Terms & Conditions of Use • Copyright 2008© National Semiconductor Corporation