6th quarterly loss in row for Texas Instruments, but cost-cutting is beginning to work, analysts say

Article Abstract:

Texas Instruments (TI) Inc reports its sixth consecutive loss. Nevertheless, industry observers are somewhat optimistic because downsizing- and cost cutting-measures seem to be taking hold. Texas Instruments eliminated 6,000 jobs during 1991, taking a one-time charge of $240 million, which resulted in a loss of $85 million. However, CEO and Chmn Jerry R. Judkins projects $220 million in annual savings, which suggest an operating profit of $12 million in the 4th qtr. Judkins is optimistic, foreseeing a return to profitability in 1992. TI needs to improve its 4M-bit dynamic random access memory (DRAM) production operations. Three Japanese companies - Hitachi, Toshiba and NEC - taken together, sold 86 million such units in 1991, but TI sold only 3.5 million. TI's stock was down 75 cents on Friday, Jan 24, 1992, closing at $35.

Semiconductor industry, International competition (Economics), Downsizing (Management), DRAM (Dynamic random access memory), DRAM, Outlook, Japanese Competition, Stock, Losses, Fourth Quarter

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Texas Instruments reports first profit since late 1990

Article Abstract:

Texas Instruments Inc reports a profitable quarter after six consecutive loosing quarters. Results for the quarter include net income of $40 million, compared with a net loss of $54 million for the same period a year ago. Texas Instruments also reports a 3 percent increase in revenue to $1.69 billion. Analysts attribute the strong report to cost reduction efforts, higher royalty payments and improved demand for the company's products. The company has reduced its payroll 6,400 through layoffs and voluntary retirement programs; TI's current payroll is 61,806 employees worldwide. Royalty collection increased during the quarter, thanks to a one-time $30 million payment from two Japanese companies; TI's total royalty revenue equaled $95 million. The company's computer chip unit contributed nearly half of the quarter's revenues.

Profits, Financial Analysis Software, Profit, First Quarter

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