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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: Hayduke who wrote (5506)	2/26/2001 7:49:41 AM
From: Hayduke	Read Replies (1) \| Respond to of 6180

TI warns..... biz.yahoo.com Monday February 26, 7:01 am Eastern Time Press Release SOURCE: Texas Instruments Incorporated TI Revises First-Quarter Outlook Analyst Conference Call Today at 9 a.m. Eastern Time, 8 a.m. Central Time. Live Audio Webcast Available at ti.com DALLAS, Feb. 26 /PRNewswire/ -- Texas Instruments Incorporated (NYSE: TXN - news) today said that revenue for the first quarter of 2001 will be lower than previously expected due to the economic slowdown that is continuing to constrain demand for technology products. TI initially experienced a sharp downturn in its markets late in the fourth quarter of 2000, as its customers reacted to weakening demand and higher inventories. Market conditions have not improved during the quarter and customers have continued to cancel or reschedule backlog, causing visibility to remain limited. As a result, TI believes that first-quarter revenue will decline about 20 percent compared to the fourth quarter, instead of its previous estimate of about 10 percent. Due to the additional drop in revenue, pro forma operating margin is expected to decline about six to eight percentage points, instead of the earlier estimate of five to six percentage points. Early in the quarter, TI began a phased cost-reduction plan to limit the impact of reduced revenue on profitability. Actions include the temporary idling of manufacturing facilities and shortened workweeks in some areas. Throughout the company, TI has put a temporary freeze on hiring, has significantly cut discretionary expenses such as travel, and today has announced a voluntary retirement program. Additionally, the company has lowered its capital spending plans for 2001 to $2 billion, a 30 percent reduction from last year's $2.8 billion. TI is continuing its strong R&D investments, estimated to be $1.7 billion for 2001, up from $1.6 billion last year. ``The strength of our balance sheet gives TI the ability to maintain strategic levels of capital and R&D investments. These investments are focused on areas that increase our competitiveness and efficiency, including 300-millimeter manufacturing for DSP, 200-millimeter manufacturing for Analog, and .13-micron technologies,'' said Tom Engibous, TI chairman, president and CEO. ``We continue to believe that DSP and high-performance analog are the core technology drivers of the Internet Age,'' Engibous said. ``Our product and market positions are the best in the industry, and we are using this pause in the economy to further strengthen our strategies and our structure. We are well prepared to resume strong sales and earnings growth when the economy and our markets rebound.'' [Safe harbor statements deleted.]