Despite impressive earnings and some optimistic guidance, National Semiconductor (NYSE:NSM) took a spill yesterday, losing 4% to $41.80 in regular trading, and a little more following an afternoon mid-quarter report from Intel (NASDAQ:INTC).

For the second quarter, revenues grew 12% to $473.5 million, bumping net income from $6.2 million last year to $65.8 million, or $0.34 per share. Meanwhile, orders jumped 29% sequentially and 36% year over year, reflecting the broad-based demand for analog products that has helped driveLinear Technology (NASDAQ:LLTC) andMaxim (NASDAQ:MXIM).

National's shift in product mix towards higher-margin analog products is also paying off. Second-quarter gross margins came in at 50.1%, up from 47.2% in the first quarter and 42.9% last year.

Going forward, the company expects sequential revenue growth of 3% to 5% in the third quarter, which is traditionally weaker compared to the second, though this year's third quarter does include an extra week. Either wayl, the forecast is stronger than had been expected, and will be accompanied with additional margin improvements.

National Semiconductor shares have been on an absolute tear, having more than tripled off the February lows. Still, while the rise in share price -- and overall sector weakness -- was likely the culprit behind yesterday's sell off, National doesn't look particularly expensive at about 35 times this year's earnings.

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