Texas Instruments says past 'shallow downturn'

Jan 24, 2011 By PETER SVENSSON , AP Technology Writer
In this Jan. 19, 2011 photo, Texas Instruments products are displayed at a computer store in Santa Clara, Calif. Texas Instruments Inc., reports quarterly financial earnings Monday, Jan. 24, 2011, after the market close.(AP Photo/Paul Sakuma)

(AP) -- Texas Instruments Inc. on Monday posted fourth-quarter results that narrowly topped forecasts, and the chipmaker said it is now past a "short and shallow downturn" that hit in the second half of last year.

The company said it earned $942 million, or 78 cents per share, in the October to December period.

That included 14 cents per share in one-time gains from the sale of a product line and a tax benefit. Excluding those effects, earnings beat the average estimate of analysts polled by FactSet by 1 cent per share.

In the same period last year, TI earned $655 million, or 52 cents per share.

Revenue rose 17 percent to $3.53 billion, beating the analyst forecast of $3.51 billion.

For much of last year, TI's results reflected the company's rebound from the recession. Then, in October, the company warned that the market was weakening, and that its outlook for this year was cautious. Demand for chips for laptop computers, hard disk drives and televisions started to look poor, while chips for video games and smart phones stayed in strong demand.

But on Monday, CEO Rich Templeton said the fall's downturn now looks "mostly complete." The company used it to replenish its inventories and return product lead-times to normal, he said.

TI projected a revenue range for the first quarter - $3.27 billion to $3.55 billion - that stretches well above the average analyst forecast at $3.34 billion. It expects net income of 54 cents to 62 cents per share, straddling the analyst forecast at 58 cents.

TI shares fell 83 cents, or 2.4 percent, to $33.82 in extended trading Monday, after rising 74 cents in regular trading. The stock is close to a 2-year high of $34.86 set a week ago.

Explore further: Cheaper wireless plans cut into AT&T 2Q profit

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 ...

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

Oct 25, 2010

(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 ...

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.

Recommended for you

Nokia profits rise after sale of handset division

4 hours ago

(AP)—Telecommunications and wireless equipment maker Nokia Corp. saw its shares surge on Thursday after it reported higher profits and an improved earnings outlook in the wake of its sale to Microsoft of its troubled handset ...

Swiss drug maker Roche posts 7 percent profit drop

7 hours ago

(AP)—Swiss drugmaker Roche Holding AG on Thursday posted a net profit drop of 7 percent compared with a year ago, weighed down by a strong Swiss franc and charges from one of its diagnostic units.

Cheaper wireless plans cut into AT&T 2Q profit

18 hours ago

(AP)—AT&T Inc. on Wednesday posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

Facebook 2Q earnings, revenue soar (Update)

18 hours ago

(AP)—Facebook is on a roll. The world's largest online social network posted sharply higher earnings on Wednesday as revenue from mobile advertising continued to grow, and more people used it, more often.

User comments : 0