National Semiconductor says results won't meet forecasts
Article Abstract:
National Semiconductor said its sales and earnings for the 3rd qtr 1998 would decline from the 2nd qtr 1998 and might not meet analysts' estimates. The company reported 2nd qtr 1998 earnings of $72.5 million, or 46 cents a share, on sales of $640.3 million for its core businesses. First Call said analysts had expected the company to earn 39 cents a share for the 3rd qtr 1998, compared to 17 cents for the 3rd qtr 1997. News of the forecast resulted in a more than 16% drop, or $4.625, in the company's New York Stock Exchange shares to $23.50. National Semiconductor blamed some of the difficulties on the Asian financial crisis, especially in South Korea. Another problem stems from production problems at Cyrix, which the company acquired for about $550 million in 1997. Lower numbers would signal the first troubles in executing Chmn, Pres, and CEO Brian L. Halla's strategy shift from high-volume, low-priced commodity chips to more specialized offerings that generate higher profit margins.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Citing low chip prices, Intel earns less than forecast
Article Abstract:
Intel blamed its greater-than-expected 29% decline in 2nd qtr 1998 earnings on weaker selling prices. The computer industry bellwether reported earnings of $1.17 billion, or 66 cents a diluted share. By comparison, Intel listed earnings of $1.645 billion, or 92 cents a share, in the 2nd qtr 1997. A First Call survey of analysts expected Intel's per-share earnings to reach 68 cents, while the whisper number was 70 cents. Revenue of $5.93 billion dipped slightly from the 1st qtr 1997's $5.96 billion. Chip price reductions and a PC inventory surplus have weakened Intel's earnings in recent quarters. Inventory write-downs prevented Intel from reporting per-share earnings of 71 cents, according to Morgan Stanley. Intel will not report earnings growth for the rest of 1998, and 1999 may prove difficult, S.G. Cowen Securities reported.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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