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Nat'l Semi exits processors
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May 5, 1999: 8:45 a.m. ET
Semiconductor maker also cuts jobs, focuses on analog sales to raise profits
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NEW YORK (CNNfn) - In a bid to improve financial performance, National Semiconductor Corp. said Wednesday it is exiting the personal computer processor business and cutting 550 jobs, or less than 5 percent of its work force.
The move comes as semiconductor makers have been hard hit by falling personal computer prices.
National Semiconductor (NSM) said the job cuts and business change will mean one-time charges of $250 million to $300 million in its fiscal fourth quarter, which ends May 30. The charges do not include the intended sale of the company's Maine-based wafer fabrication plant, also announced Wednesday.
The Santa Clara, Calif.-based chip maker said exiting the processor business will allow it to focus on its traditional and more profitable analog business.
"We will immediately cease slugging it out in the PC processor market, which has been dragging down our financial performance for several quarters," said Brian L. Halla, National Semiconductor's chief executive officer.
Looking ahead, the company said it expects its fiscal year 2000 sales to increase over fiscal 1999's as double-digit growth in the analog and information appliance markets offsets the eliminated PC processor sales.
National Semiconductor shares rose 1-1/ 2 Tuesday to 14-5/8. 
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National Semiconductor
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