Texas Instruments (TXN) reported earnings on Monday that indicated that the semiconductor company brought in a net income of $362 million, or $0.32 per share on revenue of $2.89 billion, squeezing in just ahead of expectations of $0.31 per share on revenue of $2.85 billion.
The earnings figures for the first quarter also represent a 37 percent increase that can be attributed to lower costs, even while revenue is down 7.6 percent.
The company saved money with the cost of making chips down 5 percent, while spending on research and development was down 18 percent to $419 million. Acquisitions expenses were down by nearly half, to $86 million.
Furthermore, the company has begun turning away from mobile, as most of the producers of smartphones and tablets which it used to supply have transitioned to making these components themselves. The general situation has also led to layoffs in its wireless business.
The company reported losses in sales almost across the board, including in analog chips, down 2 percent, with other revenue down 24 percent. The only increase came in the form of revenue from embedded processing that was up 4 percent.
Texas Instruments has, in the meantime, emphasized different aspects of its business such as producing processors for cars, robotics, and health care in order to adapt to changing market conditions. The company forecasts earnings for the current quarters of $0.37 to $0.45 per share, and revenue of $2.93 billion to $3.17 billion, while estimates currently have these figures at $0.38 per share on revenue of $3.04 billion.
At the close of regular trading, the company’s shares were up 1.64 percent to $34.81, but got a slight bump of about half of a percent in late trading as well.
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