Tuesday, July 21, 2009
Texas Instruments Inc. reported a 56 percent drop in quarterly profit as chip demand fell along with sales of cellphones and other electronics, but it issued current-quarter forecasts that topped expectations.
Chief Financial Officer Kevin March said the economy may not have hit bottom yet although it was close.
"End demand is still low in relation to where it was six to 12 months ago. We need to be prepared for slow to no growth for a while," March said in an interview.
Shares of TI fell about 1 percent in extended trading.
The developer of chips for cellphones and industrial equipment posted a second-quarter net profit of $260 million, or 20 cents per share, compared with $588 million, or 44 cents a share, in the same quarter a year ago.
Profit excluding restructuring costs was 25 cents per share, beating analysts' average forecast of 23 cents, according to Reuters Estimates.
Revenue fell 27 percent to $2.46 billion, close to the average Wall Street forecast of $2.42 billion.
The company, which competes with Qualcomm Inc. in the wireless chip market, forecast third-quarter earnings per share of 29 cents to 39 cents, including 1 cent in restructuring charges, on revenue of $2.5 billion to $2.8 billion.
That was better than analysts' average forecast for earnings, excluding restructuring charges, of 28 cents on revenue of $2.53 billion, according to Reuters Estimates.
TI shares fell to $23.35 following the results, after closing up 2.6 percent at $23.61 on the New York Stock Exchange.
By: DocMemory
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