It was a mixed bag for Texas Instruments after the bell on Tuesday, beating analyst estimates for the fourth quarter but also announcing approximately 1,100 layoffs on the way too.
The semiconductor maker reported a net income of $511 million, or 46 cents per share (statement).
Non-GAAP earnings were 46 per share on a revenue of $3.028 billion.
Wall Street was looking for earnings of 46 cents per share on a revenue of $2.99 billion.
For 2013 overall, TI posted revenue of $12.2 billion, down five percent annually, with earnings of $1.91 cents per share, up 26 percent annually.
Regardless, Texas Instruments is looking to free up even more room in the budget with some severe cost-cutting measures worldwide. Here was the explanation offered in the Q4 report:
TI's fourth-quarter results and first-quarter outlook include restructuring charges for cost-saving actions in Embedded Processing and in Japan. The company is not exiting any markets or discontinuing any existing products but will reduce investments in markets that do not offer sustainable growth and returns. The savings will reflect the elimination of about 1,100 jobs worldwide. The charges are expected to be about $80 million, of which $49 million was included in the fourth quarter of 2013 and about $30 million will be included in the first quarter of 2014. The company expects to achieve annualized savings of about $130 million by the end of 2014.
CEO Rich Templeton did not comment about the workforce reduction in the report, instead focusing on financials and performance by department.
"Our fourth quarter capped a year in which each quarter's performance increasingly reflected the impact of structural changes we've made to focus TI on Analog and Embedded Processing, where the diversity and longevity of our positions are assets," said Templeton, in prepared remarks.
For the current quarter, Wall Street expects TI to deliver earnings of at least 44 cents per share on a revenue of $2.95 billion.
TI offered Q1 revenue guidance of $2.83 billion to $3.07 billion with earnings projected to fall between 36 and 44 cents per share.