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National Semiconductor Corp. announced sales of US$292 million for fiscal 3Q09, down 31% from 2Q09 and down 36% from 3Q08, which grossed US$453 million.  This quarter’s earnings per diluted share also decreased from 3Q08, going from 29 cents to 9 cents in 3Q09, or a net income of US$21.1 million. 

The company is expecting sales in fiscal 4Q09 to decrease sequentially by 5-10%, due to the poor economy.  In response National will use fiscal 4Q09 to reduce their overall expenses and move more of its R&D investments in the direction of emerging growth opportunities. They will also eliminate approximately 850 positions worldwide in product lines, sales and marketing, manufacturing and support functions.

National Semiconductor will close its assembly and test plant in Suzhou, China and its wafer fabrication plant in Arlington, Texas over the next several quarters and will precede the elimination of another 875 positions.  After this consolidation, the company’s three manufacturing facilities will be wafer fabrication plants in South Portland, Maine and Greenock, Scotland and an assembly and test facility in Melaka, Malaysia.

The company will eventually gain approximately US$160-180 million in charges, consisting of severances, asset impairments and other exit-related costs, of which US$130-145 million will be recorded in fiscal 4Q09 and the rest in following quarters. These actions result in 26% of the company’s workforce being eliminated.