TI's earnings drop, but better than expected

As we noted yesterday, chip-maker Texas Instruments is the latest firm to suffer ramifications from the growth of inexpensive mobile phones: Net income fell 12 percent, to $516 million, as demand for its chips slumped. During the same quarter last year the company posted net income of $585 million. Analysts expected TI's net income to fall 14 percent and sales to fall to $3.149 billion from $3.334 billion, according a poll of 40 analysts by Thomson Financial. Even though earnings fell, analysts were encouraged by TI's performance because "on the continuing operations basis" TI reported earnings of 35 cents per share--four cents above expectations.

Texas Instruments CEO Rich Templeton also noted that the inventory glut that has plagued the company has ended, and the second quarter would bring growth.

For more on TI's Q1:
- see this article in Forbes

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