Brian Halla
Brian Halla
both continued delivery entered fall improvement looking meaningful revenue second
We have entered the fall with much better backlog in place for delivery in the second quarter. We are looking for continued meaningful improvement in both revenue and profitability in the second quarter.
analog business core growth increased last led percent pleased quarter second strong
I'm pleased with another quarter of strong growth in which our core business revenues increased by 26 percent over last year's second quarter, led by 36 percent growth in analog sales.
decline due expect fourth further low quarter sales
Due to the low bookings in the fourth quarter we now expect a further decline in sales for the first quarter.
although consumer demand driven early holiday mostly offset opportunity pockets product programs season specific strong weak
Early indications of consumer demand for the holiday season are not strong at this point, and although we have pockets of opportunity -- driven mostly by our specific product programs -- they may not be enough to offset weak end-user demand for this quarter.
becomes behind disappears display electric goes inside invisible pc
First the PC goes on a chip. Next, the PC becomes a plug-in behind the dashboard of your car, behind a flat-panel display in your kitchen, or inside a set-top box. The PC disappears just the way electric motors are invisible in our lives.
bottom continued improved quarter sales soft summer time touched
Sales continued soft during the summer quarter. We think, however, we may have touched bottom as bookings in the first quarter improved for the first time in a year.
although carry decline early momentum normal october offset picked quarter reflects third whether
Our third quarter typically reflects a post-holiday seasonal decline in revenues. Although bookings picked up in October and November, it is too early to tell whether that momentum will carry over enough to offset the normal seasonal pattern.
analog billion capital cash dollars drive ended fiscal goal gross invested margins percent return stronger year
We ended the year with over a billion dollars in cash reserves, a 21 percent return on invested capital and a stronger analog portfolio. Our goal in fiscal 2006 is to drive gross margins even higher.
analog business conditions continued earlier expected gain goal gross linear margin market originally percent reached share standard stronger time
Business conditions were stronger than we had originally anticipated. We reached our interim goal of 60 percent gross margin earlier than we expected and at the same time continued to gain market share in the analog standard linear market.
analog drove execution focus gross led margins percent previous robust wireless
Led by robust analog and wireless sales, we had an outstanding quarter. Focus on execution drove our gross margins to 51 percent, up from 48 percent in the previous quarter.
based current earnings inventory pcs percent projected quarter seven slowness weeks wireless
Seven weeks ago at our Dec. 7 earnings announcement, we projected a falloff in the current quarter of 10 percent based on slowness in the wireless market, PCs and peripherals, and a broad-based distribution inventory correction.
december earlier factor felt issue january months necessary results
Now that we have the months of December and January finished, we felt it necessary to factor those results into our earlier projections and issue this update.
action conform continuing given impacts market maximize national necessary opportunity order people resources served tough weakness
This was a tough action for us to take, especially because it impacts many people who have served National well. However, given the continuing weakness in the marketplace, it is necessary to conform our resources to the market in order to maximize National's opportunity for long-term success.
call cautious early encouraged improvement recent remain
While we are encouraged by the recent seasonal improvement in bookings, we still feel it is too early to call the turn, and we remain cautious on the near-term outlook.