National Semi lowers revenue forecast

National Semiconductor Corp. downgraded its revenue outlook for the third fiscal quarter ending Feb. 25. The revised forecast was driven by lower-than-expected shipments of display products over the holiday season in its Asian distribution channel and the projected decrease in shipments in the third quarter.

According to the company, it expects fiscal Q3 revenues to slide by 14 percent to 15 percent from its sales of $501.6 million in the second fiscal quarter. National Semiconductor previously anticipated Q3 revenues to decrease by only 8 percent to 11 percent on-quarter, of which 2 percentage points resulted from the reduced foundry revenue of its previously disposed cordless and PC super I/O businesses.

Meanwhile, National Semiconductor will not revise its gross margin forecast for Q3, which is expected to fall between 58 percent and 59 percent, with about $7 million stock compensation expense.