Texas Instruments reports EPS in-line, beats on revs; guides Q1 EPS towards the low end of expectations, revs in-line
Reports Q4 (Dec) earnings of $0.46 per share, in-line with the GAAP Capital IQ Consensus of $0.46 and guidance of $0.44-0.48; revenues rose 1.6% year/year to $3.03 bln vs the $2.99 bln consensus and guidance of $2.92-3.04 bln.
Co issues guidance for Q1, sees EPS of $0.36-0.44 vs. $0.44 GAAP Capital IQ Consensus; sees Q1 revs of $2.83-3.07 bln vs. $2.95 bln Capital IQ Consensus. TI's fourth-quarter results and first-quarter outlook include restructuring charges for cost-saving actions in Embedded Processing and in Japan. The company is not exiting any markets or discontinuing any existing products but will reduce investments in markets that do not offer sustainable growth and returns. The savings will reflect the elimination of about 1,100 jobs worldwide. The charges are expected to be about $80 million, of which $49 million was included in the fourth quarter of 2013 and about $30 million will be included in the first quarter of 2014. The co expects to achieve annualized savings of about $130 million by the end of 2014.
"Our fourth quarter capped a year in which each quarter's performance increasingly reflected the impact of structural changes we've made to focus TI on Analog and Embedded Processing, where the diversity and longevity of our positions are assets. "The combined revenue from Analog and Embedded Processing grew 12 percent over last year's fourth quarter and comprised 82 percent of total revenue. Individually, Analog was up 12 percent and Embedded Processing was up 11 percent from a year ago."