Texas Instruments To Sell Part Of Mobile Chip Business - InformationWeek
IoT
IoT
Infrastructure // PC & Servers
News
10/22/2008
06:29 PM
50%
50%
RELATED EVENTS
[Best Practices] Managing Multiple Clouds
Jul 26, 2017
Putting all your eggs in one cloud basket is risky, because clouds are not immune to denials of se ...Read More>>

Texas Instruments To Sell Part Of Mobile Chip Business

Following a weak third quarter, the company said it will sell part of its cellular baseband operations in a restructuring effort to save over $200 million a year.

Following a third quarter with weak profits and revenues, Texas Instruments said it would sell off part of its wireless business to cut costs.

The company's third-quarter revenue was about $3.4 billion, down 8% from the same period last year. TI also saw net income hit $563, a 26% drop from a year ago. The company said the weak earnings were due to the global economic slowdown.

"We entered the third quarter with a cautious view of the economy and its impact on our markets," said Rich Templeton, TI's CEO, in a statement. "Revenue was weak, as expected, because consumers and corporations reduced their spending in this uncertain economy."

To save costs, the company announced it would reduce expenses by more than $200 million in its wireless business, particularly in the cellular baseband operations. TI said it is "actively pursuing" the sale of the merchant part of this business but did not name a potential buyer.

Reductions will begin immediately, TI said, and any potential deal would be completed by June 2009. The company said the restructuring costs will costs nearly $110 million across the next three quarters.

TI stressed that it will continue to invest in its analog and embedded processing, as well as its OMAP applications processors, which are at the heart of many smartphones today.

"Smartphones are growing rapidly and our handset customers are differentiating their product lines through applications and user interfaces. We anticipated this opportunity and have been investing in it for more than a decade," Templeton said. "As a result, our OMAP applications processors lead the market, and we will concentrate on extending this lead."

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll