National Semiconductor reports improved profits

National Semiconductor reports improved profits

National Semiconductor Corp. has reported improved profit figures. The company said in a statement that their profits were up by around 68 percent this most recent quarter. They seem to have gained from the improved demands for power management chips for electronics saw. This overcame the seasonal weakness in cell phones.

However, the reports also said that the inventories among National’s distributors rose during the quarter. This somewhat disappointed the investors as the shares of the company took a beating in the stock market.

National Chief Executive Brian Halla said in a statement: “Somehow, the picture that’s out there is that the distributors are hoarding product and putting in this massive supply of inventory and it’s all going to come tumbling down. We think they’re under control, possibly a little low.”

He further added: “Business conditions were stronger than we had originally anticipated. We reached our interim goal of 60 percent gross margin earlier than we expected.”