DELAWARE
|
1-6453
|
95-2095071
|
||
(State or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification Number)
|
2900 SEMICONDUCTOR DRIVE, P.O. BOX 58090
SANTA CLARA, CALIFORNIA
|
95052-8090
|
(Address of principal executive offices)
|
(Zip Code)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
RESULTS OF OPERATION AND FINANCIAL CONDITION
|
Item 8.01
|
OTHER EVENTS
|
Item 9.01
|
FINANCIAL STATEMENTS AND EXHIBITS
|
99.1
|
News Release dated December 9, 2010 issued by National Semiconductor Corporation* (Earnings)
|
NATIONAL SEMICONDUCTOR CORPORATION
|
|||
Dated: December 9, 2010
|
//S// Jamie E. Samath
|
|
|
Jamie E. Samath
Vice President and Corporate Controller
Signing on behalf of the registrant and
as principal accounting officer
|
Media Contact: | Financial: |
LuAnn Jenkins | Mark Veeh |
(408) 721-2440 | (408) 721-5007 |
luann.jenkins@nsc.com | invest.group@nsc.com |
·
|
Q2 sales of $390.4 million decreased 5% from Q1 of fiscal 2011 but increased 13% from Q2 of fiscal 2010
|
·
|
GAAP earnings per share of 34 cents was down from 36 cents in Q1 but up from 20 cents one year ago
|
·
|
Gross margin of 68.9% decreased from 70.9% in Q1 but increased from the 65.3% posted in Q2 of last year
|
·
|
Sales outlook for Q3 of fiscal 2011 expected to be down 8 percent to 12 percent sequentially
|
Q2 FY11
|
Q1 FY11
|
Q2 FY10
|
YTD 2011
|
YTD 2010
|
||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
Nov. 28,
2010
|
Aug. 29,
2010
|
Nov. 29,
2009
|
Nov. 28,
2010
|
Nov. 29,
2009
|
||||||||||||
Net sales
|
$
|
390.4
|
$
|
412.0
|
$
|
344.6
|
$
|
802.4
|
$
|
659.0
|
||||||
Cost of sales
|
121.5
|
120.0
|
119.6
|
241.5
|
241.8
|
|||||||||||
Gross margin
|
268.9
|
292.0
|
225.0
|
560.9
|
417.2
|
|||||||||||
Research and development
|
69.5
|
71.3
|
68.2
|
140.8
|
133.5
|
|||||||||||
Selling, general and administrative
|
69.4
|
70.0
|
81.0
|
139.4
|
154.0
|
|||||||||||
Severance and restructuring expenses
|
6.5
|
9.8
|
0.7
|
16.3
|
6.4
|
|||||||||||
Other operating expense (income), net
|
-
|
0.1
|
1.1
|
0.1
|
(0.9
|
)
|
||||||||||
Operating expenses
|
145.4
|
151.2
|
151.0
|
296.6
|
293.0
|
|||||||||||
Operating income
|
123.5
|
140.8
|
74.0
|
264.3
|
124.2
|
|||||||||||
Interest income
|
0.6
|
0.6
|
0.4
|
1.2
|
0.9
|
|||||||||||
Interest expense
|
(13.8
|
)
|
(13.0
|
)
|
(15.0
|
)
|
(26.8
|
)
|
(30.7
|
)
|
||||||
Other non-operating income (expense), net
|
3.3
|
(2.4
|
)
|
2.0
|
0.9
|
5.3
|
||||||||||
Income before taxes
|
113.6
|
126.0
|
61.4
|
239.6
|
99.7
|
|||||||||||
Income tax expense
|
30.1
|
37.2
|
14.4
|
67.3
|
22.9
|
|||||||||||
Net income
|
$
|
83.5
|
$
|
88.8
|
$
|
47.0
|
$
|
172.3
|
$
|
76.8
|
||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
0.35
|
$
|
0.37
|
$
|
0.20
|
$
|
0.72
|
$
|
0.33
|
||||||
Diluted
|
$
|
0.34
|
$
|
0.36
|
$
|
0.20
|
$
|
0.70
|
$
|
0.32
|
||||||
Selected income statement ratios as a
percentage of sales:
|
||||||||||||||||
Gross margin
|
68.9
|
%
|
70.9
|
%
|
65.3
|
%
|
69.9
|
%
|
63.3
|
%
|
||||||
Research and development
|
17.8
|
%
|
17.3
|
%
|
19.8
|
%
|
17.5
|
%
|
20.3
|
%
|
||||||
Selling, general and administrative
|
17.8
|
%
|
17.0
|
%
|
23.5
|
%
|
17.4
|
%
|
23.4
|
%
|
||||||
Net income
|
21.4
|
%
|
21.6
|
%
|
13.6
|
%
|
21.5
|
%
|
11.7
|
%
|
||||||
Effective tax rate
|
26.5
|
%
|
29.5
|
%
|
23.5
|
%
|
28.1
|
%
|
23.0
|
%
|
Percentage (decrease) increase in selected items:
|
Q2 FY11
vs
Q1 FY11
|
Q2 FY11
vs
Q2 FY10
|
YTD FY11
vs
YTD FY10
|
||||
Net sales
|
(5.2)
|
%
|
13.3
|
%
|
21.8
|
%
|
|
Net income
|
(6.0)
|
%
|
77.7
|
%
|
124.3
|
%
|
|
Diluted earnings per share
|
(5.6)
|
%
|
70.0
|
%
|
118.8
|
%
|
|
Nov. 28,
2010
|
May 30,
2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
878.8
|
$
|
1,027.0
|
||||
Receivables
|
99.8
|
98.2
|
||||||
Inventories
|
136.4
|
118.6
|
||||||
Deferred tax assets
|
69.7
|
70.3
|
||||||
Other current assets
|
147.0
|
156.8
|
||||||
Total current assets
|
1,331.7
|
1,470.9
|
||||||
Net property, plant and equipment
|
407.6
|
390.1
|
||||||
Goodwill
|
68.3
|
66.1
|
||||||
Deferred tax assets, net
|
239.6
|
245.5
|
||||||
Other assets
|
105.9
|
102.2
|
||||||
Total assets
|
$
|
2,153.1
|
$
|
2,274.8
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
-
|
$
|
276.5
|
||||
Accounts payable
|
60.9
|
49.8
|
||||||
Accrued liabilities
|
142.7
|
204.5
|
||||||
Income taxes payable
|
3.2
|
17.6
|
||||||
Total current liabilities
|
206.8
|
548.4
|
||||||
Long-term debt
|
1,044.4
|
1,001.0
|
||||||
Long-term income taxes payable
|
181.4
|
175.3
|
||||||
Other non-current liabilities
|
134.1
|
124.2
|
||||||
Total liabilities
|
1,566.7
|
1,848.9
|
||||||
Commitments and contingencies
|
||||||||
Shareholders’ equity:
|
||||||||
Common stock of $0.50 par value
|
120.6
|
119.5
|
||||||
Additional paid-in-capital
|
219.0
|
188.3
|
||||||
Retained earnings
|
379.5
|
250.3
|
||||||
Accumulated other comprehensive loss
|
(132.7
|
)
|
(132.2
|
)
|
||||
Total shareholders’ equity
|
586.4
|
425.9
|
||||||
Total liabilities and shareholders’ equity
|
$
|
2,153.1
|
$
|
2,274.8
|
Six Months Ended
|
||||||||
Nov. 28,
2010
|
Nov. 29,
2009
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
172.3
|
$
|
76.8
|
||||
Adjustments to reconcile net income with net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
39.7
|
46.4
|
||||||
Share-based compensation
|
27.3
|
32.7
|
||||||
Excess tax benefit from share-based payment arrangements
|
(2.1
|
)
|
(0.1
|
)
|
||||
Tax expense associated with stock options
|
(11.2
|
)
|
(4.4
|
)
|
||||
Gain on investments
|
(3.7
|
)
|
(5.3
|
)
|
||||
Non-cash restructuring recovery
|
(0.5
|
)
|
(5.7
|
)
|
||||
(Gain) loss on disposal of equipment
|
(0.5
|
)
|
0.8
|
|||||
Impairment of equipment and other assets
|
4.0
|
-
|
||||||
Other, net
|
6.3
|
2.6
|
||||||
Changes in certain assets and liabilities, net:
|
||||||||
Receivables
|
(1.5
|
)
|
(17.5
|
)
|
||||
Inventories
|
(17.4
|
)
|
17.9
|
|||||
Other current assets
|
0.2
|
(5.0
|
)
|
|||||
Accounts payable and accrued liabilities
|
(54.5
|
)
|
15.8
|
|||||
Current and deferred income taxes
|
(2.0
|
)
|
(10.7
|
)
|
||||
Other non-current liabilities
|
9.7
|
15.3
|
||||||
Net cash provided by operating activities
|
166.1
|
159.6
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of property, plant and equipment
|
(46.9
|
)
|
(14.4
|
)
|
||||
Proceeds from sale of property, plant and equipment
|
4.1
|
0.1
|
||||||
Business acquisition, net of cash acquired
|
(4.1
|
)
|
(4.8
|
)
|
||||
Funding of benefit plan
|
(3.2
|
)
|
(1.1
|
)
|
||||
Redemption of benefit plan
|
0.3
|
1.3
|
||||||
Other, net
|
(0.1
|
)
|
(1.4
|
)
|
||||
Net cash used in investing activities
|
(49.9
|
)
|
(20.3
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayment of bank borrowing
|
(250.0
|
)
|
(31.2
|
)
|
||||
Proceeds from liquidation of derivative instrument in fair value hedge
|
13.0
|
-
|
||||||
Payment on software license obligations
|
(3.4
|
)
|
(3.2
|
)
|
||||
Excess tax benefit from share-based payment arrangements
|
2.1
|
0.1
|
||||||
Minimum tax withholding paid on behalf of employees for net share settlements
|
(0.2
|
)
|
(1.6
|
)
|
||||
Issuance of common stock
|
17.2
|
56.7
|
||||||
Cash payments in connection with stock option exchange program
|
-
|
(1.1
|
)
|
|||||
Cash dividends declared and paid
|
(43.1
|
)
|
(37.6
|
)
|
||||
Net cash used in financing activities
|
(264.4
|
)
|
(17.9
|
)
|
||||
Net change in cash and cash equivalents
|
(148.2
|
)
|
121.4
|
|||||
Cash and cash equivalents at beginning of period
|
1,027.0
|
700.3
|
||||||
Cash and cash equivalents at end of period
|
$
|
878.8
|
$
|
821.7
|
||||
Q2 FY11
|
Q1 FY11
|
Q2 FY10
|
YTD 2011
|
YTD 2010
|
||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
Nov. 28,
2010
|
Aug. 29,
2010
|
Nov. 29,
2009
|
Nov. 28,
2010
|
Nov. 29,
2009
|
||||||||||||
Net income used in basic and diluted
|
||||||||||||||||
earnings per share calculation
|
$
|
83.5
|
$
|
88.8
|
$
|
47.0
|
$
|
172.3
|
$
|
76.8
|
||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
0.35
|
$
|
0.37
|
$
|
0.20
|
$
|
0.72
|
$
|
0.33
|
||||||
Diluted
|
$
|
0.34
|
$
|
0.36
|
$
|
0.20
|
$
|
0.70
|
$
|
0.32
|
||||||
Weighted-average shares outstanding:
|
||||||||||||||||
Basic
|
239.9
|
238.8
|
236.6
|
239.3
|
235.1
|
|||||||||||
Diluted
|
244.8
|
244.6
|
241.0
|
244.7
|
239.5
|
|||||||||||
Q2 FY11
|
Q1 FY11
|
Q2 FY10
|
YTD 2011
|
YTD 2010
|
||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
Nov. 28,
2010
|
Aug. 29,
2010
|
Nov. 29,
2009
|
Nov. 28,
2010
|
Nov. 29,
2009
|
||||||||||||
Other operating expense (income), net:
|
||||||||||||||||
Litigation settlement
|
$
|
-
|
$
|
-
|
$
|
1.5
|
$
|
-
|
$
|
(0.5
|
)
|
|||||
Other
|
-
|
0.1
|
(0.4
|
)
|
0.1
|
(0.4
|
)
|
|||||||||
Total other operating expense (income), net
|
$
|
-
|
$
|
0.1
|
$
|
1.1
|
$
|
0.1
|
$
|
(0.9
|
)
|
|||||
Other non-operating income (expense), net:
|
||||||||||||||||
Gain on investments
|
$
|
3.7
|
$
|
-
|
$
|
2.0
|
$
|
3.7
|
$
|
5.3
|
||||||
Net gain (loss) on derivative instrument in
|
||||||||||||||||
fair value hedge
|
0.3
|
(2.4
|
)
|
-
|
(2.1
|
)
|
-
|
|||||||||
Loss on liquidation of derivative instrument
|
||||||||||||||||
in fair value hedge
|
(0.7
|
)
|
-
|
-
|
(0.7
|
)
|
-
|
|||||||||
Total other non-operating income (expense), net
|
$
|
3.3
|
$
|
(2.4
|
)
|
$
|
2.0
|
$
|
0.9
|
$
|
5.3
|
|||||