Texas Instruments Cuts 1,100 Jobs Despite Revenue Beat
NEW YORK (TheStreet) - Texas Instruments
The chipmaker reported sales of $3.03 billion, just above analysts' forecast of $2.99 billion. Texas Instruments earned 46 cents a share, in line with Wall Street's estimates. The company's numbers, however, include a restructuring charge of $49 million, which reduced earnings by 3 cents a share.
The company's free cash flow for the full year of 2013 was $3 billion, or 24% of revenue. Texas Instruments had set a target of 20% to 25% for free cash flow.
Texas Instruments had $3.8 billion in cash and short-term investments at the end of 2013.
"Our fourth quarter capped a year in which each quarter's performance increasingly reflected the impact of structural changes we've made to focus TI on Analog and Embedded Processing, where the diversity and longevity of our positions are assets," said Rich Templeton, the Texas Instruments CEO, in a statement.
For the first-quarter, Texas Instruments expects revenue to be between $2.83 billion and $3.07 billion, with earnings coming in between 36 cents and 44 cents a share, including charges. Analysts surveyed by Thomson Reuters expect sales of $2.95 billion and earnings of 44 cents a share.
The company's fourth-quarter numbers and first-quarter outlook include restructuring charges related to its Embedded Processing business and its operations in Japan. Although the company is not exiting any markets or discontinuing any products, it will reduce investments in "markets that do not offer sustainable growth and returns," according to its statement. The savings, it added "will reflect the elimination of about 1,100 jobs worldwide".
Texas Instruments shares dipped 0.27% to $43.73 in extended trading.
--Written by James Rogers in New York.
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