Texas Instruments laid off a small but undisclosed number of people mainly in Silicon Valley as part of a restructuring of its Analog and Embedded Processing groups. No products will be eliminated in the reorg.

The move comes as TI prepares to announce quarterly earnings on January 24. The company has seen improving profits and a rising stock price over the last year, although at least one analyst recently announced he will maintain a hold rating on the stock.

“Within our Analog structure, we used to have four business entities and now we will have three–aligned by product categories our customers think about,” a TI spokesperson said. “No products or product portfolios have been eliminated…We did have a very small number of reductions in support functions,” she added.

The move essentially eliminates the name and some positions associated with what TI had called its Silicon Valley Analog group, a remnant of its $6.5 billion acquisition in 2011 of National Semiconductor based in Santa Clara, Calif. TI's overall analog unit continues to have three existing groups--Power, Signal Chain, and High Volume Analog and Logic

The change will not affect the segments TI uses to report its financial results.

Wall Street expects TI will report fourth quarter revenues of $3.32 billion, down 10% from the prior quarter and in line with its previous guidance. Results are expected to be down across its business units, led by declines associated with PCs, Apple’s slowing iPhone ramp and declines in industrial and communications markets.

Analog chips which make up 65% of TIs sales are expected to be down 7% from the prior quarter, according to a report from Ross Seymore of Deutsche Bank. Gross margins are expected to remain flat at 62%.

TI is expected to forecast a slight decline of about 3% for its first-quarter sales, slightly better than the typical seasonal decline. Seymore estimates TI will report $14.5 billion in revenues in the coming year, up 5% from last year.

“The company continues to impress with strong execution …amidst a tepid macro environment,” he wrote in a report released Thursday night. “However, such superb execution leaves few levers to generate significant upside…We therefore maintain our Hold rating,” he wrote.

By: DocMemory
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