TI reports a 56 percent drop in profit

By siliconindia   |   Wednesday, 22 July 2009, 17:17 IST
Printer Print Email Email
TI reports a 56 percent drop in profit
Bangalore: The impact of recession has been reflected in the quarterly results of Texas Instruments (TI). The second-largest U.S. chipmaker announced a drop of 56 percent in its second quarter profit. Net income of TI fell to $260 million, or 20 cents a share, from $588 million, or 44 cents, a year earlier. Analysts predicted a profit of 19 cents a share, according to the average of estimates in a Bloomberg survey. Revenue of the company has declined by 27 percent to $2.46 billion. "After sharp inventory corrections in our markets during the prior two quarters, our revenue levels are beginning to more closely reflect end demand," said Rich Templeton, Chairman, President and CEO of TI. TI shares have advanced 52 percent this year on optimism that orders are rebounding after a slump in demand for electronics. Chief Financial Officer of TI Kevin March said that the global economy is still in decline, even though demand for chips used in smart phones, televisions, computer-games consoles and notebook computers had improved. TI's operating profit declined $490 million compared to last year same period and grew $333 million compared with the first quarter. Excluding restructuring charges of $85 million, TI's operating profit was $428 million in the second quarter, or 17.4 percent of revenue, and earnings per share (EPS) was $0.25.

Digital Supply Chain Transformation – Winning the AI/ML Way