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Last Update: 24-Jan-12 10:40 ET
Texas Instruments Down Modestly On Earnings Results
Late yesterday, Texas Instruments (TXN $32.99 -0.20) reported fourth quarter earnings of $0.48 per share, excluding $0.23 in charges, $0.09 better than the Capital IQ Consensus Estimate of $0.39; revenues fell 3.0% year/year to $3.42 bln vs the $3.26 bln consensus.
For the first quarter, the company issued first quarter earnings guidance of $0.26 to $0.34, which may not be comparable to $0.39 Capital IQ Consensus Estimate, EPS will be negatively impacted by about 9 cents from $170 mln of total acquisition-related charges that will include about $150 mln of acquisition charges and, additionally, about $20 million included in cost of revenue; restructuring charges will negatively impact EPS by about 1 cent.
On the too line, the company sees revenues of $3.02 billion to $3.28 billion versus the $3.22 billion Capital IQ Consensus Estimate. Baseband revenue is expected to decline from $279 million in the fourth quarter to about $75 million in the first quarter, and range from $50 million to $100 million in each remaining quarter of 2012. In addition to financial results, TI also announced plans to close two older semiconductor manufacturing facilities in Hiji, Japan, and Houston, Texas, over the course of the next 18 months. Production from these sites will be moved to other more advanced TI facilities. "Revenue in the fourth quarter was higher than expected across all our major product lines, reinforcing our belief that we're at the bottom of this downturn. I'm pleased to say that despite the downturn and the lower factory utilization that came with it, cash flow from operations was strong and well above levels as compared with similar points in prior downturns."
For the first quarter, the company issued first quarter earnings guidance of $0.26 to $0.34, which may not be comparable to $0.39 Capital IQ Consensus Estimate, EPS will be negatively impacted by about 9 cents from $170 mln of total acquisition-related charges that will include about $150 mln of acquisition charges and, additionally, about $20 million included in cost of revenue; restructuring charges will negatively impact EPS by about 1 cent.
On the too line, the company sees revenues of $3.02 billion to $3.28 billion versus the $3.22 billion Capital IQ Consensus Estimate. Baseband revenue is expected to decline from $279 million in the fourth quarter to about $75 million in the first quarter, and range from $50 million to $100 million in each remaining quarter of 2012. In addition to financial results, TI also announced plans to close two older semiconductor manufacturing facilities in Hiji, Japan, and Houston, Texas, over the course of the next 18 months. Production from these sites will be moved to other more advanced TI facilities. "Revenue in the fourth quarter was higher than expected across all our major product lines, reinforcing our belief that we're at the bottom of this downturn. I'm pleased to say that despite the downturn and the lower factory utilization that came with it, cash flow from operations was strong and well above levels as compared with similar points in prior downturns."
