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 March 10, 2011 issued by National Semiconductor Corporation* (Earnings)
|
NATIONAL SEMICONDUCTOR CORPORATION
|
|||
Dated: March 10, 2011
|
//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:
|
Lee Ann Schlatter
|
Mark Veeh
|
(408) 721-7680
|
(408) 721-5007
|
LeeAnn.Schlatter@nsc.com
|
invest.group@nsc.com
|
·
|
Q3 sales of $343.9 million decreased 12% from Q2 of fiscal 2011 and decreased 5% from Q3 of fiscal 2010
|
·
|
GAAP earnings per share of 24 cents was down from 34 cents in Q2 but up from 22 cents one year ago
|
·
|
Gross margin of 66.5% decreased from 68.9% in Q2 and from the 67.3% posted in Q3 of last year
|
·
|
Sales outlook for Q4 of fiscal 2011 expected to increase sequentially to a range of $360 million to $370 million
|
·
|
Revenues between $360 million and $370 million, an increase of approximately 4 percent to 7 percent sequentially
|
·
|
Gross margin percentage between 66 percent and 67 percent
|
·
|
Combined R&D and SG&A expenses between $132 million and $138 million
|
Q3 FY11
|
Q2 FY11
|
Q3 FY10
|
YTD 2011
|
YTD 2010
|
||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||
Feb. 27,
2011
|
Nov. 28,
2010
|
Feb. 28,
2010
|
Feb. 27,
2011
|
Feb. 28,
2010
|
||||||||||||||
Net sales
|
$
|
343.9
|
$
|
390.4
|
$
|
361.9
|
$
|
1,146.3
|
$
|
1,020.9
|
||||||||
Cost of sales
|
115.2
|
121.5
|
118.2
|
356.7
|
360.0
|
|||||||||||||
Gross margin
|
228.7
|
268.9
|
243.7
|
789.6
|
660.9
|
|||||||||||||
Research and development
|
65.6
|
69.5
|
69.0
|
206.4
|
202.5
|
|||||||||||||
Selling, general and administrative
|
63.1
|
69.4
|
81.7
|
202.5
|
235.7
|
|||||||||||||
Severance and restructuring expenses
|
8.2
|
6.5
|
6.4
|
24.5
|
12.8
|
|||||||||||||
Other operating expense (income), net
|
0.4
|
-
|
0.6
|
0.5
|
(0.3
|
)
|
||||||||||||
Operating expenses
|
137.3
|
145.4
|
157.7
|
433.9
|
450.7
|
|||||||||||||
Operating income
|
91.4
|
123.5
|
86.0
|
355.7
|
210.2
|
|||||||||||||
Interest income
|
0.6
|
0.6
|
0.4
|
1.8
|
1.3
|
|||||||||||||
Interest expense
|
(14.1
|
)
|
(13.8
|
)
|
(14.8
|
)
|
(40.9
|
)
|
(45.5
|
)
|
||||||||
Other non-operating income, net
|
1.8
|
3.3
|
0.8
|
2.7
|
6.1
|
|||||||||||||
Income before taxes
|
79.7
|
113.6
|
72.4
|
319.3
|
172.1
|
|||||||||||||
Income tax expense
|
20.3
|
30.1
|
19.2
|
87.6
|
42.1
|
|||||||||||||
Net income
|
$
|
59.4
|
$
|
83.5
|
$
|
53.2
|
$
|
231.7
|
$
|
130.0
|
||||||||
Earnings per share:
|
||||||||||||||||||
Basic
|
$
|
0.25
|
$
|
0.35
|
$
|
0.22
|
$
|
0.97
|
$
|
0.55
|
||||||||
Diluted
|
$
|
0.24
|
$
|
0.34
|
$
|
0.22
|
$
|
0.94
|
$
|
0.54
|
||||||||
Selected income statement ratios as a
percentage of sales:
|
||||||||||||||||||
Gross margin
|
66.5
|
%
|
68.9
|
%
|
67.3
|
%
|
68.9
|
%
|
64.7
|
%
|
||||||||
Research and development
|
19.1
|
%
|
17.8
|
%
|
19.1
|
%
|
18.0
|
%
|
19.8
|
%
|
||||||||
Selling, general and administrative
|
18.3
|
%
|
17.8
|
%
|
22.6
|
%
|
17.7
|
%
|
23.1
|
%
|
||||||||
Net income
|
17.3
|
%
|
21.4
|
%
|
14.7
|
%
|
20.2
|
%
|
12.7
|
%
|
||||||||
Effective tax rate
|
25.5
|
%
|
26.5
|
%
|
26.5
|
%
|
27.4
|
%
|
24.5
|
%
|
Percentage (decrease) increase in selected items:
|
Q3 FY11
vs
Q2 FY11
|
Q3 FY11
vs
Q3 FY10
|
YTD FY11
vs
YTD FY10
|
||||
Net sales
|
(11.9
|
%)
|
(5.0
|
%)
|
12.3
|
%
|
|
Net income
|
(28.9
|
%)
|
11.7
|
%
|
78.2
|
%
|
|
Diluted earnings per share
|
(29.4
|
%)
|
9.1
|
%
|
74.1
|
%
|
|
Feb. 27,
2011
|
May 30,
2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
860.3
|
$
|
1,027.0
|
||||
Short-term investments
|
40.0
|
-
|
||||||
Receivables
|
91.4
|
98.2
|
||||||
Inventories
|
138.2
|
118.6
|
||||||
Deferred tax assets
|
75.1
|
70.3
|
||||||
Other current assets
|
140.5
|
156.8
|
||||||
Total current assets
|
1,345.5
|
1,470.9
|
||||||
Net property, plant and equipment
|
420.4
|
390.1
|
||||||
Goodwill
|
68.3
|
66.1
|
||||||
Deferred tax assets, net
|
239.2
|
245.5
|
||||||
Other assets
|
98.8
|
102.2
|
||||||
Total assets
|
$
|
2,172.2
|
$
|
2,274.8
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
-
|
$
|
276.5
|
||||
Accounts payable
|
50.5
|
49.8
|
||||||
Accrued liabilities
|
104.3
|
204.5
|
||||||
Income taxes payable
|
6.6
|
17.6
|
||||||
Total current liabilities
|
161.4
|
548.4
|
||||||
Long-term debt
|
1,042.6
|
1,001.0
|
||||||
Long-term income taxes payable
|
189.0
|
175.3
|
||||||
Other non-current liabilities
|
129.5
|
124.2
|
||||||
Total liabilities
|
1,522.5
|
1,848.9
|
||||||
Commitments and contingencies
|
||||||||
Shareholders’ equity:
|
||||||||
Common stock of $0.50 par value
|
121.4
|
119.5
|
||||||
Additional paid-in-capital
|
246.3
|
188.3
|
||||||
Retained earnings
|
414.7
|
250.3
|
||||||
Accumulated other comprehensive loss
|
(132.7
|
)
|
(132.2
|
)
|
||||
Total shareholders’ equity
|
649.7
|
425.9
|
||||||
Total liabilities and shareholders’ equity
|
$
|
2,172.2
|
$
|
2,274.8
|
Nine Months Ended
|
||||||||
Feb. 27,
2011
|
Feb. 28,
2010
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
231.7
|
$
|
130.0
|
||||
Adjustments to reconcile net income with net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
59.8
|
69.5
|
||||||
Share-based compensation
|
40.2
|
49.9
|
||||||
Excess tax benefit from share-based payment arrangements
|
(0.8
|
)
|
(0.2
|
)
|
||||
Tax benefit (expense) associated with stock options
|
6.6
|
(6.7
|
)
|
|||||
Gain on investments
|
(5.5
|
)
|
(6.1
|
)
|
||||
Non-cash restructuring recovery
|
(0.1
|
)
|
(5.7
|
)
|
||||
(Gain) loss on disposal of equipment
|
(0.5
|
)
|
1.0
|
|||||
Impairment of equipment and other assets
|
10.0
|
0.1
|
||||||
Other, net
|
5.1
|
3.0
|
||||||
Changes in certain assets and liabilities, net:
|
||||||||
Receivables
|
7.1
|
(17.4
|
)
|
|||||
Inventories
|
(19.5
|
)
|
20.3
|
|||||
Other current assets
|
0.9
|
(3.5
|
)
|
|||||
Accounts payable and accrued liabilities
|
(97.6
|
)
|
14.6
|
|||||
Current and deferred income taxes
|
(15.5
|
)
|
(15.5
|
)
|
||||
Other non-current liabilities
|
5.1
|
12.9
|
||||||
Net cash provided by operating activities
|
227.0
|
246.2
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of property, plant and equipment
|
(81.0
|
)
|
(25.9
|
)
|
||||
Proceeds from sale of property, plant and equipment
|
4.3
|
2.0
|
||||||
Purchase of short-term investments
|
(40.0
|
)
|
-
|
|||||
Business acquisition, net of cash acquired
|
(4.1
|
)
|
(4.8
|
)
|
||||
Funding of benefit plan
|
(3.5
|
)
|
(1.5
|
)
|
||||
Redemption of benefit plan
|
8.5
|
7.6
|
||||||
Other, net
|
(0.5
|
)
|
(2.2
|
)
|
||||
Net cash used in investing activities
|
(116.3
|
)
|
(24.8
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayment of bank borrowing
|
(250.0
|
)
|
(46.8
|
)
|
||||
Proceeds from liquidation of derivative instrument in fair value hedge
|
13.0
|
-
|
||||||
Payment on software license obligations
|
(6.6
|
)
|
(6.3
|
)
|
||||
Excess tax benefit from share-based payment arrangements
|
0.8
|
0.2
|
||||||
Minimum tax withholding paid on behalf of employees for net share settlements
|
(2.8
|
)
|
(1.7
|
)
|
||||
Issuance of common stock
|
35.5
|
59.5
|
||||||
Cash payments in connection with stock option exchange program
|
-
|
(1.3
|
)
|
|||||
Cash dividends declared and paid
|
(67.3
|
)
|
(56.7
|
)
|
||||
Net cash used in financing activities
|
(277.4
|
)
|
(53.1
|
)
|
||||
Net change in cash and cash equivalents
|
(166.7
|
)
|
168.3
|
|||||
Cash and cash equivalents at beginning of period
|
1,027.0
|
700.3
|
||||||
Cash and cash equivalents at end of period
|
$
|
860.3
|
$
|
868.6
|
||||
Q3 FY11
|
Q2 FY11
|
Q3 FY10
|
YTD 2011
|
YTD 2010
|
||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Feb. 27,
2011
|
Nov. 28,
2010
|
Feb. 28,
2010
|
Feb. 27,
2011
|
Feb. 28,
2010
|
||||||||||||
Net income used in basic and diluted
|
||||||||||||||||
earnings per share calculation
|
$
|
59.4
|
$
|
83.5
|
$
|
53.2
|
$
|
231.7
|
$
|
130.0
|
||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
0.25
|
$
|
0.35
|
$
|
0.22
|
$
|
0.97
|
$
|
0.55
|
||||||
Diluted
|
$
|
0.24
|
$
|
0.34
|
$
|
0.22
|
$
|
0.94
|
$
|
0.54
|
||||||
Weighted-average shares outstanding:
|
||||||||||||||||
Basic
|
241.5
|
239.9
|
237.3
|
240.1
|
235.8
|
|||||||||||
Diluted
|
247.0
|
244.8
|
242.5
|
245.5
|
240.5
|
|||||||||||
Q3 FY11
|
Q2 FY11
|
Q3 FY10
|
YTD 2011
|
YTD 2010
|
||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Feb. 27,
2011
|
Nov. 28,
2010
|
Feb. 28,
2010
|
Feb. 27,
2011
|
Feb. 28,
2010
|
||||||||||||
Other operating expense (income), net:
|
||||||||||||||||
Litigation settlement
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(0.5
|
)
|
|||||
Other
|
0.4
|
-
|
0.6
|
0.5
|
0.2
|
|||||||||||
Total other operating expense (income), net
|
$
|
0.4
|
$
|
-
|
$
|
0.6
|
$
|
0.5
|
$
|
(0.3
|
)
|
|||||
Other non-operating income, net:
|
||||||||||||||||
Gain on investments
|
$
|
1.8
|
$
|
3.7
|
$
|
0.8
|
$
|
5.5
|
$
|
6.1
|
||||||
Net gain (loss) on derivative instrument in
|
||||||||||||||||
fair value hedge
|
-
|
0.3
|
-
|
(2.1
|
)
|
-
|
||||||||||
Loss on liquidation of derivative instrument
|
||||||||||||||||
in fair value hedge
|
-
|
(0.7
|
)
|
-
|
(0.7
|
)
|
-
|
|||||||||
Total other non-operating income, net
|
$
|
1.8
|
$
|
3.3
|
$
|
0.8
|
$
|
2.7
|
$
|
6.1
|
||||||