National Semiconductor posted net earnings of $29.5 million, or 21 cents a share, for the quarter ending November 24, compared with earnings of $79.8 million or 57 cents a share a year earlier. The company did better than Wall Street expectations of 18 cents a share, according to First Call.
Sales declined 7 percent to $661.5 million for the quarter, down from $711.6 million a year ago.
The company, however, noted sales and new orders were up 17 percent from the previous quarter as demand grew for local area networking, wireless, and personal computer products.
Brian L. Halla, president and chief executive said: "The strength of sales and new order rates in October and November is encouraging, but we'll wait until after the holidays to take the cork out of the bottle."
He added that the company would be "surprised" if orders continued its pace during the holiday season, though.