TI curtails expectations: Chip giant’s Q1 results meet forecasts

Shares of Texas Instruments Inc. tumbled after the company ratcheted down expectations about the short-term market for high-end phones.
The Dallas-based chipmaker reported $3.27 billion in first-quarter revenue, up 3% from the year-ago period, and posted a net income of $662 million, an increase of 28% over last year.
Those figures matched Wall Street expectations, which had been tempered in March when Texas Instruments said weak 3G sales to a large customer would impact its first quarter bottom line. Executives this morning said the company will trim chip production as the company works to deplete bulging inventories.
“Given uncertainty in the near-term economy, we have become more conservative with our outlook for the second quarter,” CEO Rich Templeton said. “More strategically, we believe our long-term opportunity is excellent. We’re continuing to do the things needed to be the better choice for our customers, such as adding sales and applications engineers, investing in new products, and increasing assembly/text capability.”
Investors responded by sending shares down $2.03, or more than 6%, to $28.56 by mid-day.