TECHNOLOGY - May 15, 1998

National Semiconductor Corp. said it will report a larger-than-expected fiscal fourth-quarter loss, hurt by slower sales of its chips to personal computer makers. The Santa Clara-based company also expects to report disappointing earnings in its fiscal first quarter ending in August, and said it may even lose money during that quarter. National was expected to report a loss of 19 cents a diluted share in the quarter ending May 31, according to analysts. It was expected to earn 3 cents a share in the August quarter. The warning is the second in a row for National Semiconductor. Last quarter, it blamed production problems in its chip plants and slowing sales in Asia. The company said revenue will decline as much as 20% from the $599 million in sales it had in the year-ago quarter. Shares fell $1.94 to close at $18.88 on the NYSE.