Expenses reduced
1 min read
Texas Instruments has announced that it is taking actions that will reduce expenses by about one third, or more than $200million annualised, in its wireless business, especially in its cellular baseband operation.
The company is also actively pursuing the sale of the merchant portion of this operation and is in discussions with buyers. This follows the announcement of third quarter revenue of $3.39billion, net income of $563m and earnings share of $0.43.
TI chairman, president and ceo, Rich Templeton, said: “Our outlook for the fourth quarter is for revenue to decline substantially based on weak order trends over the past few months. In anticipation of declining demand, we reduced our own inventory aggressively in the third quarter, which brought factory utilisation down and put additional pressure on our profitability. We also worked closely with our distributors to reduce the inventory in our channels. We will accelerate our inventory reduction in the fourth quarter. We also will continue to reduce expenses and capital spending. At the same time, we will continue to invest in opportunities to strengthen our positions in analogue and embedded processing.”
