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National Semiconductor (NSM) Tuesday afternoon cut its outlook for the fiscal second quarter ending November 26, citing weakness at cell phone manufacturers. The company said revenues will be down about 7% to 8% sequentially from the $541.4 million reported in the first quarter.

On September 7, the company had forecast a sequential decline of 2% to 5%. The company previous said that 4 percentage points of the decline would be due to previously disposed of foundry businesses. The company still sees a similar hit from the foundry business. “The downward revision in revenue outlook is primarily due to lower-than-expected shipments to wireless handset customers,” the company said. National says gross margin will be between 59 and 60 percent; it had previously expected a number above 60 percent.

In after hours trading, National is down 59 cents to $23.36.

Source: Weak Handset Demand Causes Lowered Guidance at National Semi