TI 3Q earnings up 60 pct, sees slowdown in 4Q

Oct 25, 2010 By PETER SVENSSON , AP Technology Writer
In this Jan. 25, 2010 file photo, a company logo is displayed outside Texas Instruments' offices in Sunnyvale, Calif. Texas Instruments Inc., reports quarterly earnings Monday, Oct. 25, 2010, after the market close. (AP Photo/Paul Sakuma, file)

(AP) -- Chip-maker Texas Instruments Inc. said Monday that third-quarter income soared 60 percent as it continued to satisfy pent-up demand after the recession, but the company expects things to cool down for the rest of the year, as consumer demand is tepid.

The forecast echoes that of other chip-makers including Corp., which are also expecting sales to moderate in the fourth quarter.

TI, whose chips go into everything from cell phones to cars, said it earned $859 million, or 71 cents per share, in the July to September period. That topped the average forecast of analysts polled by Thomson Reuters by 2 cents.

In the same period last year, the Dallas-based company earned $538 million, or 42 cents per share.

Revenue rose 30 percent to $3.74 billion, beating the analyst forecast of $3.69 billion. A year ago, revenue was $2.88 billion.

"Demand from industrial markets was especially strong, while consumer demand cooled, impacting markets such as computing and televisions," said TI CEO Rich Templeton.

TI chips regulate and convert electric power in TVs and PCs and handle other tasks such as communication with hard drives.

Fourth quarter revenue already tends to be lower because manufacturers have already stocked up parts for the . Templeton also expects weakness this quarter because of "continued soft demand in computing and consumer markets, and slowing growth in the industrial market."

For the fourth quarter, TI forecast of 59 cents to 67 cents per share, and revenue of $3.36 billion to $3.64 billion. Analysts had been expecting 63 cents per share in earnings and $3.51 billion in revenue.

TI shares were down 20 cents, or 0.7 percent to $28.78 in extended trading, after the release of the results. In the regular session, shares closed up 32 cents, or 1.1 percent, at $28.98.

Explore further: EU Parliament votes to break up Google

not rated yet
add to favorites email to friend print save as pdf

Related Stories

TI 2Q revenue rises 42 pct as demand roars back

Jul 19, 2010

(AP) -- Texas Instruments Inc.' second-quarter income and revenue jumped as demand continued to recover after the recession. The company predicted even better results in the new quarter.

TI 4Q profit, revenue soar on broad chip demand

Jan 25, 2010

(AP) -- Texas Instruments Inc. said Monday its fourth-quarter profit soared as factories that use its chips for a wide range of consumer gadgets and industrial products hummed straight through the typically ...

Improvement in chip divisions boosts profit at TI

Apr 26, 2010

(AP) -- Texas Instruments Inc.'s first-quarter profit leaped after the chip maker improved results in all its product lines, and the company offered an outlook better than what financial analysts were expecting.

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

TI profit, revenue tumble on shrinking demand (Update)

Apr 20, 2009

(AP) -- Texas Instruments Inc. said Monday that first-quarter profit and revenue tumbled as competition heightened and demand for its chips shrank amid the recession, but the results still beat the company's own expectations ...

Recommended for you

EU Parliament votes to break up Google

4 hours ago

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

8 hours ago

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

23 hours ago

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.