SANTA CLARA, Calif., (AP) - National Semiconductor Corp., which makes chips that regulate power and perform other functions in gadgets, reported Friday its first-quarter profit fell 7 percent from a year ago due to a higher tax rate.
The company earned $79.6 million on sales of $466 million in its fiscal first quarter ended Aug. 24, down from earnings of $85.6 million on sales of $472 million in the same quarter a year ago.
Even as net income declined, earnings per share rose to 33 cents from 30 cents a year ago, as the company bought back stock.
Analysts surveyed by Thomson Reuters had on average been expecting earnings of 34 cents per share for the quarter. However, National Semiconductor's earnings included $19 million in pretax stock-based compensation costs, which are generally excluded from analyst estimates.
In morning trading, shares of the Santa Clara-based company rose 16 cents to $19.63.
National Semiconductor's gross margin was 66 percent, up from 63 percent a year ago. Management attributed the increase to strong manufacturing performance, cost efficiencies and increased sales of higher-value analog chips.
The company expects sales of $470 million to $480 million in the current quarter. Analysts had been expecting sales of $469 million, on average.
"The global energy crisis is a problem that needs solving, and with our leadership position in power management technology, this is our focus for growth," said Brian L. Halla, National's chairman and chief executive, in a statement.
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