• silicon.com
• Technology
• Networks

By Chris Holbrook, 8 June 2001 11:50

NEWS National Semiconductor has posted serious losses and 3Com warned of bombing revenue, losses and the closure of two factories. However, chip markets are seeing light at the end of the tunnel as company shares led a technology rally in New York yesterday evening which continued in London this morning. The technology Nasdaq composite rose 2.1 per cent to 2,264. Brian Halla, CEO of National Semiconductor, said in a statement: "This was a tough quarter for our industry." His company reported a loss of $44m for its fourth quarter, compared with last year's profit of $153.9m. Turnover fell to $401m. More positively the company said that its customers' inventory glut was clearing and saw signs of recovery. Earlier this year NatSemi slashed 1,100 jobs. Yesterday the company announced the purchase of Wireless Solutions Sweden for $23.5m in cash. 3Com has slashed its sales predictions for its final quarter to $450-475m from previously expected $550-600m and announced that it was bailing out of the cable and DSL modems business. The network equipment maker will close two factories with unspecified job losses. Since February it has cut almost 40 per cent of its workforce, around 4,700 jobs. 3Com has issued warnings each quarter since it successfully floated Palm last year. For related news, see
Pro forma results: Unethical practise?
http://www.silicon.com/a44896
Chips are down - worst results in over a decade
http://www.silicon.com/a44921
3Com cutting 30 per cent of work force
http://www.silicon.com/a44261