National Semiconductor Expects Slower Sales

National Semiconductor Corp., a diversified maker of computer chips, said that sales in its current fiscal second quarter and in its third may fall below its first quarter because of slower sales of mobile phones. The warning sent National Semi’s shares tumbling 35% to $24 in late-hours trading, from its close of $36.94 on the New York Stock Exchange. The shares had gained 81 cents. The Santa Clara, Calif.-based company said its second-quarter sales would be 6% to 8% below its first quarter’s $641 million, citing changes in inventory that its mobile-phone customers were making. Sales to mobile phone makers account for about 25% of National Semiconductor’s revenue. Mobile phone makers have been hit by lower-than-expected demand, which has crimped sales and earnings forecasts. National Semiconductor also said that although personal computer-related orders are stronger, they are still below the company’s expectations.