DOW JONES NEWSWIRES
Texas Instruments Inc.'s (TXN) first-quarter earnings rose 1.2%,
though the disaster in Japan and lower demand for wireless baseband
chips caused the company to miss its forecasts.
TI also forecast current-quarter earnings of 52 cents to 60
cents a share on revenue of to $3.41 billion to $3.69 billion.
Analysts surveyed by Thomson Reuters expect 62 cents on $3.52
billion.
Chairman and Chief Executive Rich Templeton said the impact of
the disastrous earthquake and tsunami in Japan have impaired
operations at two of the company's factories. He noted that "lower
revenue combined with expenses resulting from the earthquake
affected earnings per share."
TI, whose chips are used in everything from cellphones to
industrial equipment, has seen a sharp rebound in demand in recent
quarters. But it also had warned that it expects to lose some
revenue in the first half of its fiscal year because of damage in
Japan. The company is fresh off announcing a deal to buy National
Semiconductor Corp. (NSM) for about $6.5 billion in cash.
TI reported a profit of $666 million, or 55 cents a share, up
from $658 million, or 52 cents, a year earlier. Revenue rose 5.8%
to $3.39 billion.
The company had recently narrowed its forecasts, calling for
earnings of 56 cents to 60 cents on $3.34 billion to $3.48 billion
in revenue.
Gross margin fell to 50.9% from 52.7%.
Shares fell 0.7% to $34.58 after hours. As of the close, the
stock had risen 31% the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com