National Semiconductor lowered its revenue guidance for its fiscal Q2 to range from $445 million to $450 million, down about 18 percent to 19 percent sequentially.

The company has previously forecasted a drop of 8 percent to 10 percent. National also indicated that inventory and backlog adjustments from distributors and customers were expected to continue through Q2.

"Distributors have been more aggressive in their efforts to reduce inventories, especially in Europe and Asia," the company said. "In addition, distributor resale rates of National Semiconductor product have not picked up through October, which is not typical for the holiday season."

In addition, demand from certain customers in Asia for handset and display products has remained weak, due in part to excess supply in the channels there.

Gross margin percentage under the revised revenue outlook is expected to range from 49 percent to 50 percent, down from the original guidance of approximately 51 percent.

By: DocMemory
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