National Semi’s Profit Up 68%
National Semiconductor Corp., the computer chip maker, said earnings in its fiscal second quarter leaped 68% as the company benefited from a cost-reduction program.
The news lifted National Semiconductor’s stock by 37.5 cents per share, to $5.875, in active trading on the New York Stock Exchange.
The company said it earned $5.9 million, equal to 3 cents a share, in its second quarter ended Nov. 24, compared to $3.5 million, or 1 cent a share, a year ago. Analysts had expected the Santa Clara company to post a loss of 5 cents a share.
The company said sales in the second quarter dipped to $413.2 million from $427.4 million a year ago because of continued softness in the personal computer market.
Chief Executive Gilbert Amelio more efficient manufacturing boosted profit.
“We are beginning to see some cost reductions from restructuring activities as well as yield improvements from our continuing focus on quality in manufacturing,” he said.
The restructuring included worldwide consolidation of production lines and assembly plant shutdowns in Hong Kong and Brazil.
Standard Brands Paint Co. said it lost $2.73 million, or 57 cents per share, in the quarter ended Oct. 27. That compared to earnings of $841,000, or 8 cents per share, in the year-ago period.
Revenue at the struggling Torrance-based paint retailer declined to $64.5 million from $77.7 million.
Earlier this week, the company reached an agreement with Founders Equity, a New York investment group, that will result in a capital infusion of close to $12 million.
Standard Brands had been searching for a source of fresh cash because of heavy debt.
“This earnings report is sort of a big ‘So what?’ ,” company spokesman Craig Walker said. “I’m not too concerned about the losses. The future (of the company) will be fine. The recession has hurt us. We’ve been around since 1939, and we plan to be here for a while.”