* First-quarter revenue $2.98 bln vs est $2.96 bln
* Sees 2nd-qtr revenue $3.14 bln-$3.40 bln vs est $3.15 bln
* Shares up as much as 6 pct after market
(Adds analysts, CFO comments; details)
By Lehar Maan
April 23 Chipmaker Texas Instruments Inc's
first-quarter revenue and second-quarter revenue
forecast topped analysts' estimates on growing demand for its
chips used in communication equipment, industrial machines and
Shares of Texas Instruments, also called TI, rose as much as
6 percent in extended trading.
RBC Capital Markets analyst Doug Freedman said TI's revenue
got a boost due to higher demand from end-customers and an
overall growth in the semiconductor industry.
"The inventory levels for semiconductor devices are
presently very low. So any uptick in demand is driving an uptick
in sales," Freedman said.
TI said customer cancellations were "incredibly low right
The company, already looking to reduce its workforce and cut
costs in less lucrative markets, said it would keep a cap on
capital spending, which would help boost its margins.
TI is exiting the low-margin mobile chip business to focus
on the more profitable analog business, which makes chips for
everything from automotive safety devices to electronics.
Rival Qualcomm Inc on Wednesday posted its smallest
quarterly revenue increase since 2010 as it wrestled with a
smartphone market increasingly catering to consumers favoring
less expensive devices.
TI gets about 62 percent of its sales from its analog chip
business, where revenue rose 11 percent in the first quarter
ended March 31.
Total revenue rose 3 percent to $2.98 billion, beating
analysts' average estimate of $2.96 billion, according to
Thomson Reuters I/B/E/S.
Excluding its wireless business, which the company is
winding up, revenue grew 11 percent.
The Dallas, Texas-based company forecast second-quarter
revenue of $3.14-$3.40 billion, largely above analysts'
estimates of $3.15 billion.
Chief Financial Officer Kevin March said TI plans to keep
its capital spending at about 4 percent of revenue, which would
help gross margins.
The cost consciousness meant its second-quarter earnings
forecast of 55-63 cents per share was well ahead of analysts'
average estimate of 52 cents per share.
The company's first quarter net income rose 34 percent to
$487 million, or 44 cents per share, including a gain of 2 cents
per share from asset sales.
TI shares closed at $46.46 on the Nasdaq on Wednesday. The
stock has risen about 6 percent this year.
(Editing by Kirti Pandey, Simon Jennings and Savio D'Souza)