Macleod changes focus to revenue growth at National
March 12, 2010 // Colin Holland
Don Macleod has risen through the ranks of National Semiconductor Corp. to take on the CEO role late last November and has become the man with a mission – growth in revenue.
During his 30 years with the company he has covered the whole gambit of senior management positions in finance, operations and marketing.
His experience in the financial side of the company has seen him regarded as a safe pair of hands as National completes a restructuring which saw around 1,725 jobs, or 26 percent of its workforce lost and production at an out of date fab cut with closure of its facility in Arlington, Texas.
This has left the company lean but its wafer fabs are currently running at just 50 to 60 percent of capacity. However, there are no plans to trim capacity any further and investment is being made to upgrade its fab at Greenock in Scotland from 6 inch to 8 inch wafers. The company is also hiring staff there.
"We are in a very good position, the industry is picking up and we have lots of capacity," said Macleod. He sees this level of under-utilization of his fabs as a benefit and not a problem.
The surplus production capacity means that National is not being forced, unlike some other suppliers, to increase product lead times as demand picks up. "The capacity we have means that 80 to 85 percent of our products are on lead times of six weeks or better," said Macleod.
In December the company reported sales of $345 million for the quarter ended Nov. 29, topping Wall Streets expectations and the companys own guidance for the quarter boosted by increased demand in industrial markets. Gross margin for the quarter was 65.3 percent up from 61.1 percent in the prior quarter, but down from 65.8 percent in the year-ago quarter. Sequential gross margin improvement was due to a combination of a stronger product mix, higher sales volume and improved manufacturing cost performance, including some earlier-than-expected savings realized from wafer fab consolidation.All news
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