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: It's down to the wire for online shopping

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

It's down to the wire for online shopping

2 hours ago

As the holiday shopping season winds down, FedEx, UPS and online retailers are using the last few days to try to avoid the problems that occurred last year when severe winter weather and a surge in late orders ...

China's Xiaomi raises more than $1 bn in funding

Dec 21, 2014

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

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.