Texas Instruments Inc. posted a 35% increase in its first-quarter profit as the chip maker's revenue and margins improved.
Looking ahead, the company forecast second quarter per-share earnings of 55 cents to 63 cents on revenue of $3.14 billion to $3.40 billion. Analysts polled by Thomson Reuters projected per-share earnings of 52 cents on revenue of $3.15 billion.
The Dallas-based company (TXN) , whose chips are used for many kinds of devices purchased by consumers and businesses, has shifted its strategy to grapple with broad changes in the semiconductor market.
In January, the company announced plans to trim about 1,100 jobs, saying the reductions would affect employees in the U.S., Japan and India. TI said at the time it expected the moves to translate into about $130 million in annual savings by the end of 2014, and would trigger charges of about $80 million.
For the latest quarter, TI posted a profit of $487 million, or 44 cents a share, up from $362 million, or 32 cents a share, a year earlier. The latest results included a gain of $37 million, which benefited earnings by two cents a share and wasn't included in the company's prior guidance, related to sales of a site and other assets associated with previously announced restructuring actions, said TI.
Sales rose 3.4% to $2.98 billion.
The company in January had projected per-share earnings of 36 cents to 44 cents on revenue of $2.83 billion to $3.07 billion.
Gross margin widened to 53.9% from 47.6%.
In the latest quarter, sales of analog chips—the company's biggest top-line contributor—climbed 11%, while sales in the embedded processing business rose 17%.
Shares rose 1.7% to $47.25 in after-hours trading. Through Wednesday's close, the stock has risen 5.8% since the start of the year.
--Anna Prior
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