Chip maker Texas Instruments has reported a 97% decline in net income to $17m for the first quarter 2009, compared to net income of $662m in the year-ago quarter, on revenue down 36% at $2.09bn. The decline was attributed to restructuring costs and lower revenue in all segments.
Operating income fell 99% to $10m, while diluted EPS fell 98% to $0.01. Orders fell 34% to $2.19bn, while cash flow from operations generated was $252m compared to $649m in the previous year. The company repurchased 6.6 million shares of its common stock for $101m.
Analog revenue fell 36% to $814m, and embedded processing revenue fell 26% to $316m. Wireless revenue fell 40% to $551m, and revenue from others fell 39% to $405m.
Rich Templeton, chairman, president, and chief executive at Texas Instruments, said: Demand for our products has begun to stabilize after sharp drops in the past two quarters. Many customers have increased orders for TI products as they have begun to slow down their inventory reductions. We reduced our own inventory by $277m, and at the same time worked with distributors to reduce channel inventory by $132m. Among highlights in the quarter were the acquisition of Ciclon Semiconductor, and qualification of a new assembly/test factory.
Looking ahead to the second quarter, the company expects revenue between $1.95bn and $2.4bn and EPS between $0.01 and $0.15.