Chicago (IL) – Chip company Texas Instruments (TI) said that its first quarter net income dropped by 99 percent and held out little hope that things are going to get better very soon.
Revenues for the period amounted to $2.09 billion, while its net income was only $17 million. Operating profit fell by 99 percent compared to the same quarter last year, and was 80 percent down compared to the last quarter.
The CEO and chairman of the company, Rich Templeton, claimed that demand for TI products had started to stabilize, following big drops in the last two quarters.
But, he added: “We remain sensitive to continuing weakness in the global economy, and we have yet to see signs of a broad based recovery in our business.” TI would keep its operations flexible, he said.
For its next financial quarter, TI hopes to turn in revenues of between $1.95 billion to $2.4 billion. The firm believes there is some room for growth in analog and embedded processing.
* Meanwhile, IBM said it had turned in $2.30 billion for its quarter, a drop from $2.32 billion a year earlier. The IBM results were overshadowed by news that Oracle acquired Sun. Many of Big Blue’s business areas fell, with semiconductor sales down 36 percent compared to the same period last year. Services and software businesses also fell. But IBM has $12 billion in cash and may use that for acquisitions.