Texas Instrumentsreported quarterly earnings and revenue thatbeat Wall Street's expectations amid stronger-than-expected chip demand. Its outlook, however, fell short.
"Revenue in the fourth quarter was higher than expected across all our major product lines, reinforcing our belief that we're at the bottom of this downturn," said CEO and chairman Rich Templeton.
The chip maker reported its earnings excluding items fell to 42 cents per share in the fourth quarter from 78 cents a share in the year-earlier period.
The results included a charge of 16 cents a share related to the company's acquisition of National Semiconductor, a charge of 7 cents a share related to two plant closures and a 6-cent tax gain related to the plant closures.
Including items, the company reported net income of $298 million, or 25 cents a share.
Revenue dropped 3 percent to $3.42 billion from $3.53 billion a year ago.
Analysts had expected the company to report earnings excluding items of 39 cents per share on revenue of $3.25 billion, according to a consensus estimate from Thomson Reuters.
The company, which makes chips for a wide range of products, including cellphones, consumer electronics and industrial equipment, had warned during its previous quarterly releasethat economic uncertainty would hurt its fourth-quarter results in almost every major market segment.
The company projected first-quarter earnings excluding items of 26 to 34 cents a share, well below analysts' expectations of 41 cents a share. They expect revenue to come in between $3.02 billion and $3.28 billion, versus the consensus estimate of $3.23 billion.
The company's shares wavered in after-hours trading. (Click here to get the latest after-hour quote.)
Correction: An earlier version of this story put earnings excluding items at 48 cents a share. That did not include the 6-cent tax gain. The correct number is 42 cents a share.