In a possible signal that the chip market may be turning around, Texas Instruments raised its guidance for the second quarter, news that served to boost the company's stock. TI said it expects a jump in earnings for the quarter on revenue of $2.3 billion to $2.5 billion, up from a an April revenue forecast of $1.95 billion to $2.4 billion.
TI's stock was up 93 cents, or 4.7 percent, to $20.70 per share in late-morning trading.
The company recently said its decision to shift from making baseband chips for mobile phones and instead focus on its OMAP application process business has paid off; the company's chief executive said TI is on track to save $700 million annually by the third quarter, of which $200 million is due to its baseband exit.
TI posted just $17 million in net profit in the first quarter, down 97 percent from a net profit of $662 million in the year-ago quarter. Revenue dropped 36 percent to $2.1 billion, down from $3.3 billion in the first quarter of 2008. In late January, TI cut 3,400 jobs, or 12 percent of its workforce.
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