Analog chip player National Semiconductor reported slightly higher sequential revenues and a higher gross margin in Q4 as the company continued a “relentless” focus on higher margin analog products.
Revenues climbed to $467 million in Q4 compared to $449 million during the previous sequential quarter and $571 million for the same period a year ago. Gross margin rose 2 percent sequentially.
Net income in Q4 came in at $132.1 million or 36 cents per share compare to the same period last year when net income was $94.2 million or 24 cents per share.
"Our focus on higher-value analog products and improved gross margin is relentless," said Brian Halla, chairman and CEO, in a statement. "Regardless of the market environment, we've significantly strengthened the company's core analog business and generated 20-plus percent return on invested capital for the second year in a row."
Bookings at the Santa Clara, Calif. company in Q4 increased by 12 percent sequentially but decreased 29 percent year-over-year. Linear products showed particular strength from Q3, growing by 19 percent, the company said.
For Q1 National is expecting revenue to be flat to down 2 percent, numbers which include the effects of the sale of the company’s PC Super I/O and cordless business units.
For the year of fiscal 2005, National reported net income of $417.2 million or $1.12 per share on revenues of $1.91 billion. That compares to net income of $282.8 million or 73 cents per share on revenues of $1.98 billion for fiscal 2004. Gross margin in 2005 hit 53.4 percent compared with 51 percent in fiscal 2004.
"We ended the year with over a billion dollars in cash reserves, a 21 percent return on invested capital and a stronger analog portfolio," Halla said. "Our goal in fiscal 2006 is to drive gross margins even higher."