Feeds

TI Q4 earnings slide as sales fall

Freezes 2005 capex

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Texas Instruments saw earnings slide during the fourth quarter of FY2004 on a small sequential dip in sales, the company reported yesterday.

And with the prospect of even lower sales in the current quarter, the chip maker said it would not increase its spending on new plant this year.

TI's sales for the three months to 31 December 2004 totalled $3.15bn, down three per cent on the previous quarter but still up 14 per cent on Q4 FY2003. The latest figure was at the top end of the company's most recent forecast, of $2.96-3.2bn.

Of that total, some $2.8bn came from TI's semiconductor business, the same as the Q3 FY2004's figure but up 14 per cent on the year-ago quarter. TI attributed the year-on-year increase to booming demand for its wireless and Digital Light Projection (DLP) products.

Net income for the quarter came to $490m (28 cents a share), down 13 per cent from $563m (32 cents a share) in the previous quarter and 4.3 per cent $512m (29 cents a share) this time last year.

Still, the company managed to beat the Street, which expected to see earnings of 26 cents a share on sales of $3.1bn, according to Thomson First Call's average.

For the full year, TI racked up sales of $12.58bn, up 28 per cent on FY2003's total, thanks to a 31 per cent increase in semiconductor sales.

Once again, the chip industry's inventory correction was blamed for a decline in sales of standard products. TI itself cut its own inventory by $100m during the quarter, putting pressure on margins, President and CEO Rich Templeton admitted, but leaving the company better place going into FY2005. He also said he believes the chip channel made "good progress" reducing its own inventory during H2 2004.

Looking to Q1 FY2005, Templeton noted the tradition of weaker sales and a contemporary dip in order backlog. TI expects Q1 revenue to fall between $2.9bn and $3.14bn, yielding earnings of 22-26 cents a share. Semiconductor sales are forecast at $2.55-2.75bn.

The company said it plans to spend $1.3bn on new plant in 2005, the same as it spent in 2004. ®

Related stories

Mobile open-standards group recruits key players
TI narrows Q4 forecasts
Intel to retain top chip maker title on 04...
TI launches 'digital TV on a phone' scheme
Intel 'ends' chip digital TV tech work

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?