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Texas Instruments CEO resigns on code of conduct violation

A Texas Instruments Office is shown in San Diego, California, U.S., April 24, 2018. REUTERS/Mike Blake

(Reuters) - Texas Instruments Inc (TXN.O) said on Tuesday that Brian Crutcher had resigned as the company's chief executive officer just six weeks into the role, due to violations of the chipmaker's code of conduct on personal behavior.

The company's shares fell as much as 2.5 percent in after-market trading even as Texas Instruments reported second-quarter earnings and sales figures that beat estimates.

Chairman Rich Templeton will reassume the roles of chief executive officer and president and the chipmaker is not searching for a replacement, Texas Instruments said.

"The violations are related to personal behavior not consistent with the company's ethics and core values, but not related to company strategy, operations or financial reporting," Texas Instruments said in a statement.

Texas Instruments did not respond to messages seeking comment beyond its statement. Crutcher could not immediately be reached for comment.

Crutcher, who was appointed chief executive officer and president on June 1, has worked at Texas Instruments for the past 22 years, holding various positions including executive vice president and chief operating officer.

Crutcher's departure is the latest high-profile exit at the top level at U.S. companies in the past two months. Intel Corp (INTC.O) CEO Brian Krzanich left last month after an investigation found he had a consensual relationship with an employee in breach of company policy. Barnes & Noble Inc (BKS.N) CEO Demos Parneros was terminated earlier this month for violation of company policies.

Crutcher's departure is less likely to cause a disruption for Texas Instrument than Krzanich's departure at Intel, said Stacy Rasgon, an analyst with Bernstein.

"There's a direct replacement who was literally on the job six weeks ago," Rasgon said.

Templeton, 59, had served as the company's CEO from 2004 until this year.

While Crutcher had been "groomed" for several years to take on increasing responsibility and become CEO, Texas Instruments is seen as having a "deep bench" of other executives who have been with the company for decades, Rasgon said.

Intel, by contrast, has thinned its ranks of company veterans who could take over as CEO, leaving analysts wondering whether it would seek to appoint an outsider as chief for the first time in its 50-year history.

Texas Instruments on Tuesday also reported second-quarter revenue of $4.02 billion, up 9 percent from the same quarter a year ago, and earnings per share of $1.40, including a 3 cent tax benefit not in the company's original guidance. Those figures beat Thomson Reuters I/B/E/S estimates of revenue of $3.96 billion and earnings of $1.31 per share.

The company said it would give full second-quarter results and third-quarter guidance in its earnings release and conference call on July 24.

(Reporting by Arjun Panchadar in Bengaluru and Stephen Nellis in San Francisco; Editing by Leslie Adler)