National Semiconductor warns of sales, earnings shortfall

National Semiconductor warned Monday that its second- and third-quarter sales and earnings will fall short of analysts' estimates.

National (NYSE: NSM) shares closed up 81 cents to $36.94 ahead of the profit warning.

Company officials said it now expects second-quarter sales to fall between 6 percent to 8 percent from the $640.8 million it recorded in the first quarter.

It also warned that the sluggish sales would clip gross profit margins by approximately 2.5 percent from the 53 percent margins it had in the first quarter.

First Call Corp. consensus was expecting a profit of 77 cents a share in the second quarter.

"Shipments in the current quarter will be impacted by inventory corrections being made by some of our customers in the mobile phone market," it said in a prepared release. "Bookings for personal computer products have strengthened, but at a lower rate than seasonally expected."

Last quarter, National topped analysts' estimates, earning $149.4 million, or 76 cents a share, on sales of $640.8 million.

Its shares moved up to a 52-week high of $85.94 in March after falling to a low of $25.63 last October.

All 15 analysts tracking the stock rate it either a "buy" or "strong buy."