National Semiconductor Corp (NSM)

NetscribeSemiCdr (62.71) Submitted: 5/31/07 6:57 AM : Start Price: $25.95 NSM Score: -5.98

National Semiconductor has recently announced that it is acquiring Xignal Technologies AG, a German-based developer of high-speed data converters. Xignal is a pioneer in the development of continuous-time sigma delta analogue-to-digital converters (ADCs), a technology that enables high-resolution ADCs at megahertz speeds with greatly reduced power levels compared to traditional pipeline solutions. The acquisition of Xignal’s technology and design team is expected to strengthen National’s growing position in the data conversion market. This investment in continuous-time sigma delta intellectual property (IP) augments its existing sigma delta IP and complements its ongoing sigma delta technology development.





National Semiconductor is a leading supplier of power management products with a 14% market share. The company offers a broad portfolio of power management devices with significant intellectual properties, low-power consumption and heat dissipation, and advanced micro-packaging capabilities. It is being speculated that the company’s power management products have been designed into several 3G cell phones, flat-panel displays, and portable consumer electronics. Most of these design wins are expected materialize in the second half of 2007 and ramp up the revenue flow in the coming months.





Higher revenues, increasing capacity utilization, improving revenue mix, and improved cost structure are expected to act as the catalysts for a significant margin improvement for the company in the coming year. This not only expected to improve the earnings of the company but also help the stock of the company to scale new heights.

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