Tuesday April 17, 4:18 pm Eastern Time
Texas Instruments to cut 2,500 jobs
DALLAS, April 17 (Reuters) - Texas Instruments Inc. (NYSE:TXN - news), the world's No. 1 maker of computer chips for mobile phones, said on Tuesday it would cut 6 percent of its workforce despite first-quarter earnings that beat Wall Street estimates, as customer demand slackens and inventories pile up.
The Dallas-based manufacturer of the chips used in about two-thirds of the world's digital cellular phones said a continued slump in global demand meant it would lay off about 2,500 people starting in the current quarter and take a special charge for the job cuts.
TI said that on a pro forma basis, first-quarter net income was $317 million, or 18 cents a share, compared with $494 million, or 28 cents, in the year-earlier quarter. The consensus analyst profit forecast was 16 cents per share, according to Thomson Financial/First Call.
Revenues were $2.53 billion on a pro forma basis, down 8 percent from $2.76 a year earlier and down 17 percent from the previous quarter in line with a February warning that the U.S. economic slowdown was forcing customers to cancel or delay orders. Pro forma numbers are adjusted to reflect the acquisition last year of Burr-Brown Corp.
Texas Instruments shares closed before the earnings news at $34.00, up $0.99 or 3.0 percent. It has moved between a 52-week low of $26.28 and a high of $90. |
