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Texas Instruments 1Q profit up 37 percent

DALLAS (AP) -- Chipmaker Texas Instruments Inc. said Monday that its net income rose 37 percent in the first quarter as lower costs offset a revenue decline.

Profit grew to $362 million, or 32 cents per share, from $265 million, or 22 cents per share. Revenue slid 8 percent, to $2.89 billion from $3.12 billion.

Analysts were expecting net income of 31 cents per share and $2.85 billion in revenue, according to FactSet.

The company's costs to make chips fell 5 percent to $1.51 billion, research and development spending slid 18 percent to $419 million and acquisition expenses fell 44 percent to $86 million.

The company said its analog revenue fell 1 percent to $1.65 billion, and embedded processing revenue rose 4 percent to $561 million. Other revenue fell 24 percent to $676 million.

The company has cut jobs as it pares back its wireless business. As the company's biggest smartphone and tablet customers have begun developing their own chips, Texas Instruments is shifting the focus to industrial and automotive customers.

Texas Instruments said it expects to report net income of 37 to 45 cents per share and $2.93 billion to $3.17 billion in revenue in the current quarter. That's in line with analysts' prediction of profit of 42 cents per share on revenue of $3.04 billion.

Shares of the Dallas company gained 56 cents to close at $34.81 on Monday. The stock added 29 cents to $35.10 in aftermarket trading.