National Semiconductor Keeps an Eye on the Future with Low-Energy LED and Solar Technologies

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Researched by Industrial Info Resources (Sugar Land, Texas)--On September 5, National Semiconductor Corporation (NYSE:NSM) (Santa Clara, California) gave a conference call discussing its earnings for the first quarter of the company's 2009 fiscal year. The company posted net sales of $1.89 billion for the 2008 fiscal year.

For 1Q09, the company posted sales of $465.6 million, up 1% from 4Q08 and down 1% from the same period last year. These sales provided a net income of $80 million. Chief Operating Officer Don Macleod said that the mobile phone industry, which comprises about one-third of National Semiconductor's revenues, had grown 3%-4% from last year.

National Semiconductor is looking into the future in order to have a strong foothold in up-and-coming markets. Macleod discussed the company's venture into the energy-efficient LED-lighting industry, saying, "We did less than $5 million in revenue in the LED-lighting application area in our fiscal year '08. We're driving this to a $100 million business for us in three to five years' time."

Chairman and CEO Brian L. Halla spoke with obvious excitement about SolarMagic technology, which represents National Semiconductor's first foray into the alternative energy sector. The technology can recoup lost energy caused by shading or other conditions that cause energy reductions in typical photovoltaic cells. "The global energy crisis is a problem that needs solving," said Halla, "and with our leadership position in power management technology, this is our focus for growth." Halla also noted that while 8% of available roof space in Germany had been equipped with solar panels, only 0.4% of available space in California was being used, suggesting a strong market potential for solar-power technologies.

National Semiconductor designs and manufactures an array of electronics equipment used by several well-known companies in computer, communication, audio and other types of devices. Original equipment manufacturer customers include Apple (NASDAQ:AAPL) (Cupertino, California), who use National Semiconductor equipment in the popular iPhone and Mac notebooks, Motorola Incorporated (NYSE:MOT) (Schaumburg, Illinois), Nokia Corporation (NYSE:NOK) (Espoo, Finland), Siemens (NYSE:SI) (Munich, Germany), Bosch Limited (BOM:500530), Seagate Technology (NYSE:STX) (Grand Cayman), and Samsung Electronics Company Limited (SEO:005930) (South Korea).

National Semiconductor's dependence on these companies ultimately governs how much profit or loss the company experiences. While National Semiconductor experienced little growth this quarter, in the face of a large slowdown in consumer spending, the company seems to have performed reasonably well. With an eye on energy trends and its movement into the LED-lighting and solar-power sectors, National Semiconductor seems to be situating itself into a good position for the future.

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