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Texas Instruments boosts 1Q income 35 percent(Associated Press Via Acquire Media NewsEdge) DALLAS (AP) — Texas Instruments Inc. gave an upbeat forecast for the current quarter after the chipmaker's first-quarter profit rose 35 percent. The shares rose $1.54, or 3.3 percent, to $48 in aftermarket trading. Texas Instruments makes semiconductors used in consumer devices and industrial equipment and is reducing its reliance on chips used in smartphones and tablets. The company said that revenue from chips that convert analog signals to digital ones and from embedded technology such as microcontrollers accounted for 84 percent of first-quarter sales. Both segments grew by double-digit percentages. Meanwhile, revenue from everything else — including digital light processing for TVs, wireless products and calculators — tumbled by 28 percent. Net income was $487 million, or 44 cents per share, including a gain of 2 cents per share from a sale that the company had not included in previous guidance to investors. The results compared with year-ago profit of $362 million, or 32 cents per share. Revenue grew 3 percent to $2.98 billion. Analysts were expecting the Dallas-based company to earn 41 cents per share on revenue of $2.96 billion. TI reduced production and research and development costs, but overhead increased. For the second quarter, the company predicted that earnings would be between 55 cents and 63 cents per share on revenue of $3.14 billion to $3.40 billion. Analysts were forecasting 52 cents per share on revenue of $3.15 billion, according to FactSet. In January, TI announced that it would reduce investments in some markets and cut 1,100 jobs — about 3 percent of its work force — in the U.S., India and Japan. Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |