National Semiconductor posts $US783.5M Loss

There was more bad financial news on Friday for National Semiconductor, which reported a $US783.5 million loss for the fourth quarter ending May 30, primarily due to costs associated with its recent decision to exit the PC processor market.

There was more bad financial news on Friday for National Semiconductor , which reported a $US783.5 million loss for the fourth quarter ending May 30, primarily due to costs associated with its recently announced decision to exit the PC processor market.

The reported loss amounts to $4.65 per share on revenue of $477 million Without one-time charges of $688.4 million related to the PC processor decision, National Semiconductor lost $40 million or 24 cents a share on revenue of $486 million for the fourth quarter.

A year ago, the company posted a loss of $212.4 million or $1.29 a share including one-time charges on $510 million of revenue. Without the one-time charge in the year-ago quarter, National Semiconductor lost $69.3 million or 42 cents per share, the company said in a statement.

The company announced last month that it will stop manufacturing PC-socket-compatible microprocessors. National Semiconductor has made two separate lines of Intel-compatible x86 processors, including a line obtained through the acquisition of Cyrix in November 1997. The company will cut its workforce by 5 percent as a result of the move out of the PC processor business.

The company is on target to have a profitable quarter ending in November, Brian Halla, president and chief executive officer said in the statement. Its unprofitable PC processor business accounted for $45 million in losses during the fourth quarter, he said, adding that National Semiconductor will be out of that business soon.

In terms of its year-end financial picture, the company posted a loss of $220.6 million or $1.32 per share on revenue of $2 billion , before the one-time charges. Including those charges, National Semiconductor lost $1 billion or $6.04 cents per share during the 1999 fiscal year. That compares to $98.6 million or 60 cents per share, including one-time charges, for the previous fiscal year. Without those charges, the company had a net profit of $72.7 million or 44 cents per share on revenue of $2.5 billion in fiscal 1998.

National Semiconductor, in Santa Clara, California, can be reached at +1-408-721-5000 or at http://www.national.com.

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