Texas Instruments Inc. reported revenue of $3.2 billion and net profit of $516 million, down 4 percent and nearly 12 percent, respectively, over the year-ago quarter.
The chip vendor said that revenue was impacted by an inventory correction in the market.
“We believe the inventory correction that began in the second half of last year largely ended in the first quarter,” said Rich Templeton, TI’s president and CEO. “Orders are beginning to rebound and we expect sequential growth to resume in the second quarter.”
The results were marginally better than analysts had predicted; a Thomson Financial survey of analysts had forecast revenue of $3.15 billion.
TI forecast second-quarter revenue in the range of $3.32 billion to $3.6 billion, the bulk of which in semiconductor sales.
The second-quarter outlook seemed to bolster investors. The vendor’s first-quarter results were announced after the close of trading, when the stock price was down slightly for the day. But after-hours trading pushed the stock up as much as 9 percent.
Traders seem pleased with TI’s outlook
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