Chip-making heavyweight Texas Instruments Inc. (NYSE:TXN) reported better-than-anticipated second-quarter results Monday, but the company issued third-quarter guidance that was mostly below expectations, prompting shares to fall after the bell.
The Dallas-based maker of semiconductors forecast earnings for the current quarter between 55 cents and 65 cents a share on revenue in the range of $3.4 billion to $3.7 billion. That view was mostly below analyst expectations for earnings of 64 cents a share on revenue of $3.62 billion.
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In the second quarter, TI reported net income that fell 13% to $672 million, or 56 cents a share, compared with year-ago profit of $769 million, or 52 cents a share. The company said profit during the quarter was negatively impacted by about $50 million due to production disruptions and costs related to the earthquake in Japan. TI also disclosed $13 million in costs associated with its pending acquisition of National Semiconductor.
Revenue came in at $3.46 billion, down slightly from revenue of $3.5 billion the second quarter of 2010.
The results narrowly topped expectations, as analysts had predicted earnings 53 cents a share on revenue of $3.44 billion, according to a poll by Thomson Reuters.
"We are pleased with the continued success of the TI portfolio in Analog and Embedded Processing, said Rich Templeton, TI's chairman, president and chief executive officer. "Sequential revenue growth was driven by Embedded Processing up 12% and Analog up 3%, and we believe we again gained market share in both segments."
Inventory came to $1.76 billion at the end of the second quarter, as orders during the quarter fell 3% to $3.6 billion.
Shares of Texas Instruments fell 1% in Mondays session to close at $31.47 a share. The stock was down about 1% in after-hours trading.