Wednesday, October 22, 2008
Texas Instruments Inc. said it is in discussions with undisclosed potential buyers of its wireless business unit but would continue to support some of its custom baseband customers.
TI said it would cut expenses in the wireless business by about one third, or more than $200 million per year, especially in its cellular baseband operation.
TI said it would focus its remaining wireless investments in OMAP applications processors, which power smartphone products. Reductions in cellular baseband operations will begin immediately and are expected to be complete by June 2009, TI said. The company said it expects to take restructuring charges of approximately $110 million across the next three quarters.
TI posted a net income of $563 million on revenue of $3.39 billion for the third quarter. Income was down 4 percent sequentially and 26 percent year-to-year. Income equated to 43 cents per share, down 2 percent sequentially and 17 percent year-to-year. Revenue of $3.39 billion was up 1 percent sequentially but down 8 percent compared to the same period of 2007.
TI said it expects fourth quarter revenue of $2.83 billion to $3.07 billion and earnings per share of 30 to 36 cents. Consensus analyst expectations for TI's fourth quarter had called for earnings per share of 29 cents and revenue of $3.34 billion.
By: DocMemory
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