by Angela Gunn
January 26, 2009, 8:23 PM
Texas Instruments on Monday delivered a quarterly report showing a drop in quarterly profits -- but it's not as bad as some were expecting. The nation's second-largest chipmaker also announced plans to cut 12% of its workforce over the next two quarters, and said that factory utilization is expected to dip to 35% during the current quarter.
The cuts are expected to include both layoffs (1800 people) and voluntary retirements (1600 people, or so the company hopes). The firm estimated on its earnings call that the effort will cost around $300 million in severance and related expenses.
TI is, among other things, saddled with winding down its once-lucrative merchant chipset business. (Those chipsets were once widely used by mobile-phone manufacturers, especially Nokia; these days, phone manufacturers generally use multiple supply sources for those basic chips, and TI would prefer to offer more sophisticated OMAP applications processors for smartphones.) During their last quarterly call TI said they were attempting to sell off that division of the company; they've given up and are now treating it as "end-of-life" technology.
And now? Company executives, who like the rest of us have been watching the plummeting sales reports from mobile-phone manufacturers such as Nokia (TI's biggest customer), aren't making any long-term predictions at this point. The earnings report states baldly that the company is "not counting on a near-term economic rebound for improvement."
For the quarter just ended, TI reported revenue of $2.49 billion and net income of $107 million, which works out to earnings per share of eight cents. That's lower than the company's previous prediction of 10 cents/share, but better than the market expected to see, so in after-hours trading the company's stock actually rose 75 cents, or a bit over 5 percent, in after-hours trading.
Showing posts with label TI. Show all posts
Showing posts with label TI. Show all posts
Monday, January 26, 2009
Friday, October 17, 2008
Texas Instruments seen posting lower revenue
17 October 2008
Chipmaker downgraded ahead of third quarter report on concerns of wireless market share weakness.
Texas Instruments Inc. will report third-quarter results on Monday, with analysts expecting the chip giant to post 7% lower revenue as the tech industry reels from the uncertainty in the broader market.
The weakening economy, and concerns about TI's ability to maintain market share in the wireless sector prompted Collins Stewart to downgrade the company to a sell."Weakening trends across key end markets will likely cause TI to come in below mid-quarter guidance," analyst Ashok Kumar said in a research note.Analysts expect the chip maker to report earnings of 44 cents a share on revenue of $3.4 billion, according to a consensus survey by FactSet Research. For the year-earlier period, TI reported net income of $776 million, or 54 cents a share, on revenue of $3.66 billion.Analyst Tore Svanberg of Thomas Weisel Partners said he thinks TI will deliver in-line third-quarter results, but said,"We are incrementally concerned about the company's overall backlog visibility into the December quarter "He added,"While we believe TI's business is diversified, we are concerned that low visibility throughout the entire electronics supply chain is resulting in lower bookings activity than otherwise expected at this time of the year."TI surprised analysts by affirming its outlook, especially after a market-share warning from its biggest customer, Nokia Corp.In its revision, TI said it expects third-quarter revenue of $3.33 billion to $3.47 billion, compared with the previous range of $3.26 billion to $3.54 billion. The company also said it expects a profit of 42 to 46 cents a share, compared with the previous range of 41 to 47 cents.TI's dominant position in the market for cellphone chips has been shaken by the shift among some top customers to a multisupplier strategy. Nokia has decided to work with other suppliers such as Broadcom Corp. and STMicroelectronics NV.Ericsson also began working with other chip makers, including STMicroelectronics.
Chipmaker downgraded ahead of third quarter report on concerns of wireless market share weakness.
Texas Instruments Inc. will report third-quarter results on Monday, with analysts expecting the chip giant to post 7% lower revenue as the tech industry reels from the uncertainty in the broader market.
The weakening economy, and concerns about TI's ability to maintain market share in the wireless sector prompted Collins Stewart to downgrade the company to a sell."Weakening trends across key end markets will likely cause TI to come in below mid-quarter guidance," analyst Ashok Kumar said in a research note.Analysts expect the chip maker to report earnings of 44 cents a share on revenue of $3.4 billion, according to a consensus survey by FactSet Research. For the year-earlier period, TI reported net income of $776 million, or 54 cents a share, on revenue of $3.66 billion.Analyst Tore Svanberg of Thomas Weisel Partners said he thinks TI will deliver in-line third-quarter results, but said,"We are incrementally concerned about the company's overall backlog visibility into the December quarter "He added,"While we believe TI's business is diversified, we are concerned that low visibility throughout the entire electronics supply chain is resulting in lower bookings activity than otherwise expected at this time of the year."TI surprised analysts by affirming its outlook, especially after a market-share warning from its biggest customer, Nokia Corp.In its revision, TI said it expects third-quarter revenue of $3.33 billion to $3.47 billion, compared with the previous range of $3.26 billion to $3.54 billion. The company also said it expects a profit of 42 to 46 cents a share, compared with the previous range of 41 to 47 cents.TI's dominant position in the market for cellphone chips has been shaken by the shift among some top customers to a multisupplier strategy. Nokia has decided to work with other suppliers such as Broadcom Corp. and STMicroelectronics NV.Ericsson also began working with other chip makers, including STMicroelectronics.
Sunday, November 4, 2007
Arima Communications lands more handset orders from LG; sees strong shipments in October
5 Nov, 2007
Arima Communications has received orders from LG Electronics for three new ODM handsets, including two low-cost multimedia models and one ultra-low cost model, according to market sources. In addition, the company also recorded strong shipments in October.
Arima will use chipset solutions from MediaTek for the production of the two multimedia handsets, while utilizing the LoCosto solution from Texas Instruments (TI) for the production of the ultra-low cost model, the sources noted.
Since the fourth quarter of 2006, Arima has made four handsets – the KG200, KG300, KG195 and KG198 – for LG, with combined shipments already exceeding three million units, said the sources.
In addition, LG reportedly has been in talks with other Taiwan-based makers about possibly releasing orders for smartphones, the sources indicated.
In other news, Arima shipped 1.61 million handsets in October, the highest level in 18 months, according to sources at the company. However, for the first 10 months of 2007, handset shipments totaled 7.86 million units, down 34% on year, according to a Chinese-language Commercial Times report.
Arima's October revenues, in line with increasing shipments, topped NT$3.56 billion (US$109.9 million), up 144.2% on year, and for the first ten months, revenues accumulated to NT$14.97 billion, down 28.2% on year, according to a company filing the Taiwan Stock Exchange (TSE).
Sunday, October 28, 2007
Qualcomm and Texas Instruments Solidify Lead in Wireless Chip Sales
26th October 2007
These figures consist of revenue from sales of application-specific semiconductors for wireless applications, including mobile handsets, wireless infrastructure equipment, wireless LANs and connectivity products.
With the global wireless semiconductor market expanding by 4 percent during the period, the two companies increased their market share. Qualcomm's share rose to 18.2 percent in the second quarter, up from 17.4 percent in the first quarter. Texas Instruments' share increased to 16.4 percent in the second quarter, up from 15.9 percent in the first quarter.
"Qualcomm retained the top spot in total wireless semiconductors for the second quarter in a row," said Francis Sideco, senior analyst, wireless communications, for iSuppli. "The company, so far, is weathering its recent legal challenges to capitalize on strong growth in sales of chips for WCDMA mobile handsets and semiconductors for wireless infrastructure equipment."
Meanwhile, Texas Instruments held its second-place position.
"Texas Instruments achieved strong growth in mobile-handset and cellular infrastructure chips in the second quarter, allowing it to outgrow the market," Sideco added. "The company gained market share in mobile-handset semiconductors for 2G mobile phones due to the ramp up of its LoCosto single-chip solution for Ultra Low-Cost Handsets (ULCHs) and entry-level phones."
While Qualcomm and Texas Instruments maintained their market dominance, NXP posted the strongest growth among the Top-5 wireless semiconductor suppliers in the second quarter. NXP's wireless semiconductor revenue rose to $438 million in the second quarter, up 16.2 percent from $377 million in the first quarter. The company increased its market share to 5.8 percent in the second quarter, up six-tenths of a percentage point from 5.2 percent in the first quarter. NXP benefited from strong sales of mobile handset baseband chips.
Qualcomm and Texas Instruments in the second quarter outpaced the wireless semiconductor market, boosting their share of global sales, according to iSuppli. In the second quarter, market-leader Qualcomm achieved wireless semiconductor revenue of US$1.37 billion, up 8.6 percent from $1.26 billion in the first quarter. No. 2 player Texas Instruments sold US$1.23 billion worth of wireless-oriented semiconductors, up 7 percent from US$1.15 billion in the first quarter.
These figures consist of revenue from sales of application-specific semiconductors for wireless applications, including mobile handsets, wireless infrastructure equipment, wireless LANs and connectivity products.
With the global wireless semiconductor market expanding by 4 percent during the period, the two companies increased their market share. Qualcomm's share rose to 18.2 percent in the second quarter, up from 17.4 percent in the first quarter. Texas Instruments' share increased to 16.4 percent in the second quarter, up from 15.9 percent in the first quarter.
"Qualcomm retained the top spot in total wireless semiconductors for the second quarter in a row," said Francis Sideco, senior analyst, wireless communications, for iSuppli. "The company, so far, is weathering its recent legal challenges to capitalize on strong growth in sales of chips for WCDMA mobile handsets and semiconductors for wireless infrastructure equipment."
Meanwhile, Texas Instruments held its second-place position.
"Texas Instruments achieved strong growth in mobile-handset and cellular infrastructure chips in the second quarter, allowing it to outgrow the market," Sideco added. "The company gained market share in mobile-handset semiconductors for 2G mobile phones due to the ramp up of its LoCosto single-chip solution for Ultra Low-Cost Handsets (ULCHs) and entry-level phones."
While Qualcomm and Texas Instruments maintained their market dominance, NXP posted the strongest growth among the Top-5 wireless semiconductor suppliers in the second quarter. NXP's wireless semiconductor revenue rose to $438 million in the second quarter, up 16.2 percent from $377 million in the first quarter. The company increased its market share to 5.8 percent in the second quarter, up six-tenths of a percentage point from 5.2 percent in the first quarter. NXP benefited from strong sales of mobile handset baseband chips.
iSuppli predicts global wireless semiconductor revenue will rise by 4.5 percent in 2007 to reach $56.1 billion, up from $53.7 billion in 2006.
Monday, October 22, 2007
Texas Instruments 3Q Profit Rises 11 Percent on Analog Demand, Lower Manufacturing Costs
22 Oct, 2007
Texas Instruments Inc., the largest maker of chips used in wireless phones, said Monday that its third-quarter earnings rose 11 percent as demand for analog chips and lower manufacturing costs overcame a drop in revenue.
In the third quarter, net income rose to $776 million, or 54 cents per share, from $702 million, or 46 cents per share, in the year-earlier period.
The latest quarter included a previously disclosed gain of 2 cents per share from the sale of a business unit.
The results surpassed estimates on Wall Street, where analysts expected profit of 50 cents per share, according to Thomson Financial.
Texas Instruments, which makes chips used in more than half the world's cell phones, said the company is seeing strong growth in the analog market. Analog chips are used in a variety of electronic devices, included cell phones and digital music players.
"Analog is increasingly shaping our financial performance," said Ron Slaymaker, TI's vice president of investor relations.
Revenue fell 3 percent to $3.66 billion from $3.76 billion a year ago, in line with Wall Street expectations. The company said the year-ago figure was bolstered by customers' boosting inventory.
Looking ahead, TI issued a fourth-quarter revenue target that is lower than the average analyst estimate. The company expects revenue between $3.40 billion and $3.68 billion in revenue, while Wall Street projects $3.72 billion. The company projects profit of 48 cents to 54 cents per share, compared with Wall Street's average estimate of 50 cents for the quarter.
Slaymaker said the reason for the lighter revenue projection comes down to wireless. He said that while the industry overall has been strong, the company expects customers for its wireless chips to pull back on demand in December once they complete their holiday build. That was the pattern the company experienced a year ago, he said.
Slaymaker said TI is also seeing some impact from Ericsson bringing on an additional supplier, costing TI some market share.
Cody Acree, an analyst with Stifel, Nicolaus & Co., gave TI a "mixed" review, saying that while the company was in line for the quarter, its outlook was cautious.
"We definitely respect their view and their prudence, but it may paint a picture of weakness in the wireless market that is yet unknown," Acree said. "We'll have to see how the consumer demand shakes out during the holidays."
In electronic aftermarket trading, TI shares added 28 cents to $34.55 after closing Monday up 35 cents to $34.27.
TI also announced Monday that it would cut about 300 manufacturing jobs from its facility in Tucson, Ariz., while keeping about 300 engineering jobs there. About 200 of the manufacturing jobs will be added to the company's facility in Sherman, about 65 miles north of the company's headquarters.
The transition will take two years and result in a restructuring charge of about $35 million, with the company expecting to save $20 million when the transition is complete. The company said the move was made to more effectively use manufacturing capacity.
Last month, TI detailed plans to lay off 191 workers whose manufacturing jobs in Dallas are being eliminated and who couldn't find other positions at the semiconductor company.
The layoffs will begin in early November and continue until the end of January, the Dallas-based company has said. The workers will be put on paid leave for 60 days after their release.
Texas Instruments is also finishing the last of 233 layoffs from two other facilities in Dallas by year end.
http://www.ti.com
Source: AP News
Texas Instruments Inc., the largest maker of chips used in wireless phones, said Monday that its third-quarter earnings rose 11 percent as demand for analog chips and lower manufacturing costs overcame a drop in revenue.
In the third quarter, net income rose to $776 million, or 54 cents per share, from $702 million, or 46 cents per share, in the year-earlier period.
The latest quarter included a previously disclosed gain of 2 cents per share from the sale of a business unit.
The results surpassed estimates on Wall Street, where analysts expected profit of 50 cents per share, according to Thomson Financial.
Texas Instruments, which makes chips used in more than half the world's cell phones, said the company is seeing strong growth in the analog market. Analog chips are used in a variety of electronic devices, included cell phones and digital music players.
"Analog is increasingly shaping our financial performance," said Ron Slaymaker, TI's vice president of investor relations.
Revenue fell 3 percent to $3.66 billion from $3.76 billion a year ago, in line with Wall Street expectations. The company said the year-ago figure was bolstered by customers' boosting inventory.
Looking ahead, TI issued a fourth-quarter revenue target that is lower than the average analyst estimate. The company expects revenue between $3.40 billion and $3.68 billion in revenue, while Wall Street projects $3.72 billion. The company projects profit of 48 cents to 54 cents per share, compared with Wall Street's average estimate of 50 cents for the quarter.
Slaymaker said the reason for the lighter revenue projection comes down to wireless. He said that while the industry overall has been strong, the company expects customers for its wireless chips to pull back on demand in December once they complete their holiday build. That was the pattern the company experienced a year ago, he said.
Slaymaker said TI is also seeing some impact from Ericsson bringing on an additional supplier, costing TI some market share.
Cody Acree, an analyst with Stifel, Nicolaus & Co., gave TI a "mixed" review, saying that while the company was in line for the quarter, its outlook was cautious.
"We definitely respect their view and their prudence, but it may paint a picture of weakness in the wireless market that is yet unknown," Acree said. "We'll have to see how the consumer demand shakes out during the holidays."
In electronic aftermarket trading, TI shares added 28 cents to $34.55 after closing Monday up 35 cents to $34.27.
TI also announced Monday that it would cut about 300 manufacturing jobs from its facility in Tucson, Ariz., while keeping about 300 engineering jobs there. About 200 of the manufacturing jobs will be added to the company's facility in Sherman, about 65 miles north of the company's headquarters.
The transition will take two years and result in a restructuring charge of about $35 million, with the company expecting to save $20 million when the transition is complete. The company said the move was made to more effectively use manufacturing capacity.
Last month, TI detailed plans to lay off 191 workers whose manufacturing jobs in Dallas are being eliminated and who couldn't find other positions at the semiconductor company.
The layoffs will begin in early November and continue until the end of January, the Dallas-based company has said. The workers will be put on paid leave for 60 days after their release.
Texas Instruments is also finishing the last of 233 layoffs from two other facilities in Dallas by year end.
http://www.ti.com
Source: AP News
Monday, October 1, 2007
Qisda to start shipping UMA-compliant smartphone to Europe
1 Oct, 2007
Qisda, parent company of BenQ, has landed orders for a smartphone compliant with the UMA (unlicensed mobile access) standard from a telecom service provider with shipments to begin in October, according to sources close to Qisda.
The UMA-compliant cellphone is the E72 smartphone launched recently by BenQ, the sources indicated. The E72 is powered by a Texas Instruments (TI) OMAP 1030 processor and Microsoft's Windows Mobile 6 OS (operating system) and supports Wi-Fi and Bluetooth 2.0.
After officially spinning off its brand-product business unit BenQ in September, Qisda is now focusing on the development of market-niche handsets, including models supporting UMA and NFC (near field communication) standards, the sources noted.
Qisda will also aim at getting OEM orders from telecom services providers in Western Europe, while BenQ will focus on selling its own-brand handsets to markets in Eastern Europe and China, the sources stated.
Qisda, parent company of BenQ, has landed orders for a smartphone compliant with the UMA (unlicensed mobile access) standard from a telecom service provider with shipments to begin in October, according to sources close to Qisda.
The UMA-compliant cellphone is the E72 smartphone launched recently by BenQ, the sources indicated. The E72 is powered by a Texas Instruments (TI) OMAP 1030 processor and Microsoft's Windows Mobile 6 OS (operating system) and supports Wi-Fi and Bluetooth 2.0.
After officially spinning off its brand-product business unit BenQ in September, Qisda is now focusing on the development of market-niche handsets, including models supporting UMA and NFC (near field communication) standards, the sources noted.
Qisda will also aim at getting OEM orders from telecom services providers in Western Europe, while BenQ will focus on selling its own-brand handsets to markets in Eastern Europe and China, the sources stated.
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