Texas Instruments posted a better than expected quarterly profit due to a tax credit, but its first-quarter forecast fell short of analyst forecasts due to average selling price phones and declining inventories across the board.

It forecast first-quarter earnings per share of 28 cents to 34 cents on revenue of $2.95 billion to $3.2 billion. It expects to take restructuring charges of about $55 million, about evenly distributed in 2007.

On average, analysts had expected first-quarter earnings of 35 cents a share on revenue of $3.3 billion, according to Reuters Estimates.

"The outlook is very weak, actually. The decline in revenue is about 9 percent, which is much more than normal seasonality," Cody Acree, an analyst at Stifel Nicolaus, said.

Meanwhile, TI issued a first quarter revenue outlook that fell below analyst expectations and announced plans to eliminate about 500 jobs.

By: DocMemory
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