Texas Instruments Inc.'s first-quarter profit leaped, reflecting the chip maker's improved results in all its product lines, and the company offered an outlook better than what industry analysts were expecting.
The strong quarterly results partly come from greater demand for cell phone chips. That benefits TI because Internet-connected "smart" phones need more powerful — and more profitable — chips. TI's numbers also show the company benefiting from an overall rise in technology spending. Its chips are used in a range of electronics, from cars to manufacturing equipment to communications gear.
TI said after the market closed Monday that its net income was $658 million, or 52 cents per share, for the quarter ended March 31. That was a penny per share better than analyst estimates, according to Thomson Reuters.
In the same period last year, when all of TI's businesses suffered declines, TI earned $17 million, or a penny per share.
TI's revenue jumped 54 percent to $3.21 billion in the latest quarter, with all of TI's major divisions showing gains. Analysts polled by Thomson Reuters expected $3.14 billion.
TI's profitability also increased because its factories were more fully utilized than last year, when its customers weren't buying as many chips, and because its $10 million in restructuring charges were significantly less than the $105 million from the year-ago period.
The Dallas company cut about 3,900 jobs in 2008 and 2009 over two rounds of restructuring, leaving the company with 26,584 employees at the end of last year.
For the current quarter, TI predicted better numbers than Wall Street was expecting. The company forecast profit of 56 cents to 64 cents per share. Analysts were expecting 53 cents. Revenue should be $3.31 billion to $3.59 billion, TI said. Analysts expected $3.22 billion.
TI shares rose 34 cents, or 1.3 percent, to $27.50 in extended trading. In the regular session the shares gained 49 cents, or 1.8 percent, to close at $27.16 after earlier hitting $27.35, a 52-week high.
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