Chipmaker National Semiconductor Corp posted stronger-than-expected first quarter results on Thursday because of increased demand from industrial markets.
Shares of National Semi fell 1.5 percent after-hours, but had gained more than 30 percent in the past two months as investors bet on a chip-sector recovery in the latter part of the year.
National Semi said net income for the first quarter ended Aug. 30 fell to $29.8 million, or 13 cents a share, from $79.6 million, or 33 cents a share a year earlier, but easily beat Street expectations for a profit of 6 cents, according to Reuters Estimates.
National Semi said the most recent first quarter included pre-tax restructuring charges of about $6 million related to the closure of manufacturing facilities in Texas and China, consistent with expectations.
Sales for National Semi, whose analog chips are used in everything from cell phones -- including Apple Inc's iPhone and Palm Inc's Pre smartphone -- to cars, fell 32 percent to $314 million from $465.6 million a year ago.
That was above the average analyst estimate of $300 million.
National Semi said it expects sales in the second quarter to increase 3 percent to 8 percent sequentially to between about $325 million and $340 million.
The shares of Santa Clara, California-based National Semi closed up 1.59 percent at $15.97 on the New York Stock Exchange, but fell to $15.73 after hours.
(Reporting by Clare Baldwin; editing by Andre Grenon and Carol Bishopric))