Texas Instruments (TI, Dallas, TX) reported its first-quarter financial results. Pro-forma earnings per share were $0.18. Revenue was $2,528.0 million, down eight percent from $2,761.0 million in the year-ago quarter, and down 17 percent sequentially. Pro-forma operating profit was $340.0 million, down from $608.0 million in the year-ago quarter and from $683.0 million in the fourth quarter of 2000. Pro-forma operating margin was 13.5 percent, down 8.5 percentage points from the year-ago quarter and 9.0 percentage points from the fourth quarter of 2000.
Pro-forma income for the quarter was $317.0 million, compared with $494.0 million in the year-ago quarter and $549.0 million in the fourth quarter of 2000. Orders in the first quarter were $1,898.0 million, compared with $2,996.0 million in the year-ago quarter and $2,772.0 million in the fourth quarter of 2000.
Operating profits for the first quarter of 2001 were $229.0 million, compared with $554.0 million in the year-ago quarter. Operating margin was 9 percent, compared with 20 percent in the year-ago quarter. Net income was $230.0 million, compared with $421.0 million in the year-ago quarter.
TI reports that it expects revenue to decline about 20 percent sequentially in the second quarter. The company plans to lay off about 2,500 people, or six percent of its employees worldwide. These reductions will commence in the second quarter and the company will take associated special charges at that time. In total, these actions are expected to result in an annualized savings of approximately $400.0 million when completed.
