Texas Instruments updates 4Q forecast

Texas Instruments updates 4Q forecast with earnings hampered by restructuring costs

Associated Press

DALLAS (AP) -- Texas Instruments Inc. narrowed its fourth-quarter forecast on Monday, with lower earnings expectations due to restructuring costs.

The Dallas-based chipmaker now expects to earn 5 to 9 cents per share for the period that ends Dec. 31, versus a prior forecast of 23 to 31 cents per share. The forecast now includes charges of 21 cents per share associated with its previously announced plans to restructure its wireless segment.

The company anticipates revenue between $2.89 billion and $3.01 billion, compared with the prior outlook for $2.83 billion to $3.07 billion.

Analysts polled by FactSet expecting the company to earn 6 cents per share, including one-time charges, on revenue of $2.95 billion.

Texas Instruments said in mid-November that it will eliminate about 1,700 jobs as it trims spending in its wireless business. The cuts would reduce staff by almost 5 percent.

Texas Instruments is shifting the focus of its wireless investments to industrial and automotive customers and away from smartphones and tablets, where the company's biggest customers are developing their own custom chips instead of doing business with companies like Texas Instruments. Texas Instruments says the changes require fewer resources and less spending.

The company had 34,759 employees at the end of 2011.

Shares fell 3 cents to close at $29.82 and rose 8 cents in after-hours trading.

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