Texas Instruments Inc (TI) reported on Monday its second-quarter earnings fell 56 percent as sales were clipped by a weak economy that the company expects will “take some time” to strengthen.
But TI was heartened by an improvement from the first quarter, as customers started ramping up their inventory to more closely reflect demand.
“For us, it’s encouraging to see that revenue appears to have bottomed,” said Ron Slaymaker, vice president of investor relations.
However, “we don’t necessarily see a significant strengthening in the broader economy,” he said.
The Dallas-based chip maker earned US$260 million, or US$0.20 per share, compared with US$588 million, or US$0.44, in the same period a year ago.
Revenue fell 27 percent to US$2.46 billion from US$3.35 billion.
The results were better than what analysts had been expecting. In a survey by Thomson Reuters, analysts on average were forecasting a profit of US$0.18 per share on sales of US$2.41 billion.
Looking ahead, TI said it expects third-quarter earnings to come in at between US$0.29 and US$0.39 per share, and revenue to range from US$2.5 billion to US$2.8 billion.
Analysts are forecasting earnings of US$0.27 per share on revenue of US$2.52 billion.
Slaymaker said he doesn’t expect the company to cut any more jobs beyond what was announced in January. TI has said it plans to cut 3,400 jobs, or 12 percent of its work force, through layoffs or attrition. That’s on top of the 650 job cuts announced in October.
The two rounds combined are expected to save the company US$700 million a year.