TXN ( $46 boto) sees weaker Q1 results
(UPDATE: Adds CFO comment, paragraph 3)
By Marcus Kabel
DALLAS, Jan 22 (Reuters) - Texas Instruments Inc. (NYSE:TXN - news), the world's No. 1 maker of computer chips for mobile phones, said on Monday fourth-quarter net income rose 22 percent, but less than Wall Street had expected, and warned of lower revenues in the first quarter.
The Dallas-based company said in a statement revenue would decline about 10 percent in the first quarter from the fourth quarter, as makers of cellular phones and other consumer electronics continue to work through excess inventory.
Asked in an interview if that meant first quarter earnings per share would fall below current analyst expectations of 34 cents a share, Chief Financial Offic Ka???said, ``Yes, it's very safe to say that.''
Eric Ross, senior analyst at Thomas Weisel Partners Ga???es this quarter could translate into earnings per share between 20 and 25 cents, down from 28 cents per share a year earlier.
After the announcement, the company's shares fell to $46-1/2 in after-hours trading. The shares ended the regular trading session on the New York Stock Exchange at $48-9/16, down $1-3/4.
For the fourth quarter, pro forma net income was $549 million, or 31 cents a share, compared with $448 million, or 25 cents, a year earlier. Analysts polled by First Call/Thomson financial were expecting an average 33 cents per share.
``Looking at communications devices, consumer electronics and personal computers, all three areas have taken a hit,'' Ross said of Texas Instruments' customers.
Texas Instruments stock has gained about 5 percent since the start of the year but lost about 12 percent from a year earlier. By comparison, the Philadelphia Semiconductor Index is up 24 percent since the start of this year but off the highs of early last year.
Texas Instruments, which last October warned fourth-quarter sales were slowing from the previous quarter due to weaker world demand for wireless pho???year of Burr-Brown Corp.
The company also said the weakening world economy limits visibility into market conditions beyond the first quarter.
The company said fourth-quarter revenues were about $33 million lower than they otherwise would have been and earnings were depressed by $11 milss Du Du were depressed by $11 milss Du Du
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