National Semiconductor profit decreases 45%

National Semiconductor Corp., a maker of chips that manage power in electronic devices, said fiscal third-quarter profit dropped 45% after demand fell from chip distributors and makers of phones and liquid crystal displays.

Net income declined to $71.5 million, or 22 cents a share, from $130.1 million, or 37 cents, a year earlier, the Santa Clara, Calif.-based company said. Sales fell 21% to $431 million.

National Semiconductor, which has cut its sales forecast for three consecutive quarters, said Feb. 5 that distributors of chips in Asia had sold less than expected during the holiday shopping season.

Although those companies may be increasing orders again, National now faces more competition in the market for mobile phone parts, said Robert Burleson, an analyst at ThinkEquity Partners.

Shares of National Semiconductor rose 80 cents to $25.28.