AI
Monday, April 23, 2007 9:42:42 PM
Texas Instruments Inc. late Monday said its quarterly profit slipped nearly 12% from a year ago after it sold a business unit and faced weaker demand for its chips used in mobile phones and other electronic gear.
Still, TI shares surged 10% in late trading after the chipmaker issued a bullish second-quarter forecast and said its business is improving after two straight quarters of declining sales. Chief Executive Rich Templeton said in a statement that orders are rebounding, adding that an inventory correction the company has faced "largely ended" in the first quarter.
TI reported first-quarter net income of $516 million, or 35 cents a share, down from $585 million, or 36 cents, a year earlier. In the year-ago period, the company had income of $43 million from a sensors and controls business it sold in April 2006.
The company's per-share results topped TI's own forecast and the 31 cents-a-share expected by analysts polled by Thomson Financial.
For the three months ended March 31, TI reported sales of $3.19 billion, down 4% from a year ago, hurt by excess inventories of phone chips and other electronics components. Sales came in just above the $3.14 billion consensus estimate of analysts.
By product segment, the company said sales of chips used in mid-to-low end phones fell from a year ago, while sales of chips used in higher-end phones held steady. TI said its DLP chips used in TVs and projectors dropped 15% from a year ago. It said revenue from chips used in wireless telecom equipment was up "strongly" from a year ago.
The company's gross margin rose to 51.3% in the first quarter, up from 50.1% a year ago, helped by stronger sales of the company's high-performance analog chips used in a range of electronics, such as hand-held devices and industrial gear.
TI forecasted second-quarter financial targets above Wall Street's expectations. The company pegged sales in the range of $3.32 billion to $3.6 billion and earnings per share between 39 cents and 45 cents.
Analysts estimated sales of $3.3 billion and earnings of 37 cents a share.
The company said order trends picked up a month ago. Daily sales in March rose 20% over February with April looking to match the same pace, TI said.
In late trading, TI shares rose to $35.50, up $3.09. End of Story
http://www.marketwatch.com/news/story/ti-profit-down-12-weaker/story.aspx?guid=%7BAB93669C%2DDD62%2D...
don't expect the jump will be held for long
Still, TI shares surged 10% in late trading after the chipmaker issued a bullish second-quarter forecast and said its business is improving after two straight quarters of declining sales. Chief Executive Rich Templeton said in a statement that orders are rebounding, adding that an inventory correction the company has faced "largely ended" in the first quarter.
TI reported first-quarter net income of $516 million, or 35 cents a share, down from $585 million, or 36 cents, a year earlier. In the year-ago period, the company had income of $43 million from a sensors and controls business it sold in April 2006.
The company's per-share results topped TI's own forecast and the 31 cents-a-share expected by analysts polled by Thomson Financial.
For the three months ended March 31, TI reported sales of $3.19 billion, down 4% from a year ago, hurt by excess inventories of phone chips and other electronics components. Sales came in just above the $3.14 billion consensus estimate of analysts.
By product segment, the company said sales of chips used in mid-to-low end phones fell from a year ago, while sales of chips used in higher-end phones held steady. TI said its DLP chips used in TVs and projectors dropped 15% from a year ago. It said revenue from chips used in wireless telecom equipment was up "strongly" from a year ago.
The company's gross margin rose to 51.3% in the first quarter, up from 50.1% a year ago, helped by stronger sales of the company's high-performance analog chips used in a range of electronics, such as hand-held devices and industrial gear.
TI forecasted second-quarter financial targets above Wall Street's expectations. The company pegged sales in the range of $3.32 billion to $3.6 billion and earnings per share between 39 cents and 45 cents.
Analysts estimated sales of $3.3 billion and earnings of 37 cents a share.
The company said order trends picked up a month ago. Daily sales in March rose 20% over February with April looking to match the same pace, TI said.
In late trading, TI shares rose to $35.50, up $3.09. End of Story
http://www.marketwatch.com/news/story/ti-profit-down-12-weaker/story.aspx?guid=%7BAB93669C%2DDD62%2D...
don't expect the jump will be held for long
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