Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Pink Minion who wrote (42758)	2/26/2001 10:05:07 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 70976

February 27, 2001 -------------------------------------------------------------------------------- Texas Instruments Says Its Revenue Will Fall 20% From Fourth Quarter By ELLIOT SPAGAT Dow Jones Newswires DALLAS -- Texas Instruments Inc., indicating that its first quarter is turning out to be even weaker than it expected just a month ago, now anticipates sales will fall below their year-earlier level. The semiconductor manufacturer, which said its operating profit margin is also being squeezed, plans to begin a voluntary retirement program and cut discretionary spending to cushion its net income. Some analysts, however, immediately lowered their profit expectations. Texas Instruments to Slow Production at Five Factories (Feb. 23) TI Posts Earnings Rise but Misses Estimates, Warns of Slump (Jan. 23) * * * Company Profile: Texas Instruments In late January, when the company reported fourth-quarter results, TI said its first-quarter revenue would be 10% lower than the fourth quarter. But Monday, TI said it expects revenue to tumble 20% from the fourth quarter's $3.03 billion, to around $2.4 billion. That would put revenue about 9% below the $2.65 billion recorded in the first quarter of last year. TI executives said the slowing economy is leading customers to cancel and delay orders for its chips, which are key components in wireless phones, digital cameras and other gadgets. "We are seeing it across the board," said Rich Templeton, TI's chief operating officer. "The environment in which we operate continues to be weak and visibility remains limited." The problems are deepest in the U.S. and Asia, while customers in Europe and Japan are faring better, he said. Demand for DSL, or digital-subscriber-line, products is holding up relatively well, but they account for a sliver of TI sales. In addition to cost-cutting actions, TI's profit may be shored up by the company's ability to hold prices steady. Executives said they expect TI's first-quarter operating margin to fall six to eight percentage points from the fourth quarter. A month ago, they forecast a decline in operating margin of five to six percentage points. TI said it is offering voluntary retirement to 2,600 of its 40,000 employees, or about 6% of its work force. It is also slowing production at five plants, imposing a hiring freeze and cutting spending on discretionary items like travel. The company also said it plans to spend about $2 billion on capital projects this year, down from $2.3 billion. TI spent $2.8 billion on new factories and equipment last year. Before its disclosure, analysts surveyed by First Call/Thomson Financial expected TI to earn a first-quarter profit of 20 cents a diluted share. After the news, however, Merrill Lynch analyst Joe Osha lowered his estimate to 14 cents a share from 21 cents. Prudential Securities analyst Hans Mosemann trimmed his forecast to 16 cents a share from 19 cents. At 4 p.m. in New York Stock Exchange composite trading Monday, TI shares fell $1 to $29.15.