National Semiconductor Corp. today reported break-even results on revenue of $401.2 million for the fourth quarter of fiscal 2001, which ended May 27, 2001.
In the comparable quarter last year, which ended May 28, 2000, National reported net income of $134.2 million, or 68 cents per share, on revenues of $595.3 million before the effect of certain gains.
The fourth quarter 2001 results exclude a net pre-tax charge of $33.4 million for one-time cost reduction actions, $16.2 million related to net investment write-offs, and $6.6 million in goodwill amortization. Including these charges, the company reported a net loss of $44.4 million, or 26 cents per share.
"This was a tough quarter for our industry," said Brian L. Halla, chairman, president and chief executive officer, in a prepared statement. "However, it is possible that the worst bookings quarter may be behind us --- because we saw improved turns orders in May. Meanwhile, we continued to strengthen our financial fundamentals during the fourth quarter, enabling National to reduce our debt and still end the quarter with nearly $900 million in cash."
During the quarter, the company implemented a strategic cost reduction program to address the reduced levels of demand. This included elimination of approximately 1,100 positions, or about 10% of National's global workforce. On an annual basis, these activities are expected to save National approximately $70-$80 million.
On Tuesday, National announced the acquisition of Wireless Solutions Sweden AB, a developer of wireless solutions ranging from telemetry to mobile phones to wireless networking, including Bluetooth and 802.11 capabilities.
National's worldwide bookings declined 19% sequentially from the third quarter of fiscal 2001 and 59% compared with last year's fourth quarter. Orders in the Asia Pacific region showed the smallest decline sequentially, compared with the third quarter, and were reinforced by actual sequential increases in orders for personal computer and information appliance products, the company said.
Overall, fourth quarter billings exceeded bookings. But bookings actually improved from month to month throughout the quarter.
"Due to the low bookings in the fourth quarter we now expect a further decline in sales for the first quarter," Halla said.
For the first quarter of fiscal 2002, the company's guidance is that sales may decline 15 to 20% sequentially. Due to the resulting under-utilization of manufacturing capacity, gross margins may decline up to 10 percentage points. The corresponding loss per share could range from 30 to 35 cents. Net results will exclude goodwill amortization based on new accounting standards that are expected to be issued by the FASB.
For the full fiscal year, National reported net income of $305.5 million, or $1.62 per share (fully diluted) on revenues of $2.1 billion, before the effects of one-time gains and charges. This compares with net income of $305.6 million or $1.59 per share before the effects of similar gains and charges for fiscal 2000.
Including those gains and charges, National reported net income of $245.7 million, or $1.30 per share (fully diluted). This compares with net income of $620.8 million, or $3.24 per share (fully diluted) for fiscal 2000. The fiscal 2000 number includes a one-time gain of $270.7 million from the sale of Fairchild stock.