Texas Instruments Inc.'s (TXN) third-quarter profit fell 30%, hurt by a broad slump in demand that the chip maker said should continue into the current period.
The company's revenue in the third quarter was higher than it expected, but it noted the quarter was softer than normal. While executives said on a conference call that the company is seeing "early signs of stabilization," they still expect the fourth quarter to be weak and below seasonal.
"Economic uncertainty continues to weigh on demand in almost every major market segment in which we operate," Chairman and Chief Executive Rich Templeton said in a press release.
TI, which makes chips used in everything from cellphones to industrial equipment, had seen a sharp rebound after the recession caused customers to virtually stop buying chips. But recent macroeconomic worries have led to softer demand for semiconductors and other tech products, weighing not only on consumer businesses but also starting to affect enterprise demand.
TI in August lowered its view for the third quarter, saying it was seeing broad-based weakness across its customers and markets. The company on Monday echoed those comments and provided lower-than-expected earnings guidance for the current quarter.
Shares, up 11% over the past 12 months through Monday's close, slipped 1.3% to $31.27 in after-hours trading. The stock had climbed 4% during the regular session trading, slightly better than the 3.4% gain in the Philadelphia SOX Semiconductor index.
Bernstein analyst Stacy Rasgon said weakness in the third and fourth quarters was broadly expected, with macroeconomic softness weighing on TI's business.
"Results weren't horrible versus where expectations were," Rasgon said. "Everyone expected it to be a messy quarter, but they actually beat this quarter."
Chief Financial Officer Kevin March said in an interview the market is beginning to bottom, with July seeing the sharpest drop in orders but the decline moderating in August and September. He said revenue hit a low in July and grew the following two months.
He said the market declines aren't driven by excess semiconductor inventory but noted customers are being cautious with orders on worries about the macroeconomic environment.
"Customers had been reducing their internal inventories, and that's causing us and our competitors in the semiconductor industry to see revenue decline more sharply than what our customers ard actually experiencing," he said.
Ron Slaymaker, vice president of investor relations, said during a conference call that the reduction in TI inventory by customers is largely past. He noted the company has a "reasonable" view of the fourth quarter but said demand beyond that is tied to what the macroeconomic environment is like.
TI predicted a fourth-quarter profit of 28 cents to 36 cents, including about 15 cents of acquisition-related costs, on revenue between $3.26 billion and $3.54 billion. Analysts, on average, were expecting earnings of 54 cents a share on revenue of $3.43 billion, according to Thomson Reuters. A year ago, TI reported fourth-quarter earnings of 78 cents a share on $3.53 billion in revenue.
TI has been benefiting in recent quarters from increased focus on its highly profitable analog and embedded-application chips, as well as its applications processor for smartphones, tablets and other devices. Last month, it closed a $6.5 billion deal for rival National Semiconductor, expanding its reach in the analog market.
The company's acquisition of National Semiconductor, while hurting fourth-quarter earnings by 15 cents a share, is helping buffer its revenue in the period, March said. At the midpoint of TI's guidance, sales are down about 2% sequentially with contributions from National Semiconductor's revenue. Taking that out, the midpoint would be down 10%, he said.
March added during a conference call that acquisition charges will total $260 million in the fourth quarter and then decline to about $150 million in the first quarter and $110 million in the second quarter. The charges should then fall by about $10 million per quarter until reaching $80 million, which is the amortization of intangibles amount. He said that would continue for about eight to 10 years.
March said smartphone demand remains "solid," but the company's other businesses are experiencing softness. Automotive customers are "being confronted by wary customers given the macroeconomic outlook," he said, while industrial demand is "weak." Communications infrastructure is slowing, while consumer and PC demand are below normal seasonality, March added.
For the latest quarter, TI reported a profit of $601 million, or 51 cents a share, down from $859 million, or 71 cents a share, a year earlier. The latest quarter included about 9 cents of costs tied to the acquisition. Revenue fell 7.3% to $3.47 billion.
The company last month forecast a per-share profit of 56 cents to 60 cents with revenue between $3.23 billion and $3.37 billion.
Gross margin narrowed to 50.3% from 54.5%.
Sales of analog chips, which provide almost half of total revenue, slipped 1.5% as earnings fell 20%. Revenue from the company's embedded processing segment declined 7% as earnings decreased 29%, while wireless sales dropped 24% amid lower demand for connectivity chips from key customers, pushing earnings down 57%.
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals.
Showing posts with label business advice. Show all posts
Showing posts with label business advice. Show all posts
The International Debit Card Facts
The great boom in the international debit card industry doesn’t seem to pose any signs of halt as it has already overtaken the credit card industry in the race as the number one in electronic payments. The international debit card may in fact be described as the poor man’s credit card considering the fact that it provides almost all the benefits of a credit card at a very small fraction of the costs. But other than the rather enormous benefits one must also consider the great risks associated in using international debit cards. These risks may cost you a lot but they are considerably very easy to counter.
Some international debit cards are non-PIN protected and can be used even by just the holder’s signature. Since any signature is prone to forgery, these PIN-free international debit cards are very risky and anyone who gets a hold of your card and thereafter learns to forge your signature will be able to easily clean up your bank account. The solution to this risk is quite simple; only get international debit cards that are PIN protected.
International debit cards are indeed far riskier than credit cards. And the federal government has highlighted and clarified the gravest risks. Detailed explanations of the said risks are as follows:
Legally, your ultimate liability for fraudulent use of a credit card is generally only $50. And, when a credit card is fraudulently used, you are also only disputing whether you owe the bank money. Unlike a credit card, if your international debit card is used fraudulently, the thief robs your checking account. Potentially, all your money is drained out of your checking account. It could take the bank 10 days or more to investigate and refund your money.
Worse, unlike a credit card, under the law, your international debit card liability could be as much as $500, if you notify the bank more than 48 hours after you learn of the problem or even up to all the money in your checking account plus your maximum overdraft line of credit if you fail to notify the bank within 60 days. Under pressure from the state PIRGs, banks claim to have voluntarily limited international debit card liability to $50. PIRG has received complaints from consumers whose banks have not honored the well-publicized alleged voluntary $50 limit.
On lost credit cards, your loss is limited to $50 per card. On an EFT card, your liability for an unauthorized withdrawal can vary: Your loss is limited to $50 if you notify the financial institution within two business days after learning of loss or theft of your card or code. But you could lose as much as $500 if you do not tell the card issuer within two business days after learning of loss or theft. If you do not report an unauthorized transfer that appears on your statement within 60 days after the statement is mailed to you, you risk unlimited loss on transfers made after the 60-day period. That means you could lose all the money in your account plus your maximum overdraft line of credit, if any. Read more on
International Debit Card.
Some international debit cards are non-PIN protected and can be used even by just the holder’s signature. Since any signature is prone to forgery, these PIN-free international debit cards are very risky and anyone who gets a hold of your card and thereafter learns to forge your signature will be able to easily clean up your bank account. The solution to this risk is quite simple; only get international debit cards that are PIN protected.
International debit cards are indeed far riskier than credit cards. And the federal government has highlighted and clarified the gravest risks. Detailed explanations of the said risks are as follows:
Legally, your ultimate liability for fraudulent use of a credit card is generally only $50. And, when a credit card is fraudulently used, you are also only disputing whether you owe the bank money. Unlike a credit card, if your international debit card is used fraudulently, the thief robs your checking account. Potentially, all your money is drained out of your checking account. It could take the bank 10 days or more to investigate and refund your money.
Worse, unlike a credit card, under the law, your international debit card liability could be as much as $500, if you notify the bank more than 48 hours after you learn of the problem or even up to all the money in your checking account plus your maximum overdraft line of credit if you fail to notify the bank within 60 days. Under pressure from the state PIRGs, banks claim to have voluntarily limited international debit card liability to $50. PIRG has received complaints from consumers whose banks have not honored the well-publicized alleged voluntary $50 limit.
On lost credit cards, your loss is limited to $50 per card. On an EFT card, your liability for an unauthorized withdrawal can vary: Your loss is limited to $50 if you notify the financial institution within two business days after learning of loss or theft of your card or code. But you could lose as much as $500 if you do not tell the card issuer within two business days after learning of loss or theft. If you do not report an unauthorized transfer that appears on your statement within 60 days after the statement is mailed to you, you risk unlimited loss on transfers made after the 60-day period. That means you could lose all the money in your account plus your maximum overdraft line of credit, if any. Read more on
International Debit Card.
How to Get a Perfect Car Loan
If you want to get the perfect car loan that fits your budget, it is foolhardy to just sign-up when you have not determined all of your available options. Before doing so, you might to consider first the figures that you will be working with.
Once you have determined the model of the car that you want, where you will be getting the loan from, and your monthly allowance for the used car loan payment, you may proceed with signing up. Then you will be on your way to owning the vehicle that you want.
There are a lot of web sites online which offer auto loan rate calculators. These rates vary by state and city. There are also online lenders who offer a cheaper rate, as compared to getting car loans via banks who – more often than not – deny your loan application, especially for used vehicles.
Research online and visit the used car dealers in your area. Collect the price quotes first to determine the current rates for the used cars available in the market.
You can also ask around for the rates. You are bound to get more results by word of mouth, especially if you know car enthusiasts. Take the following as an example of the current used car rates.
In California, three lenders who offer used car loans are the Bank of America, Capital One Auto Finance and Wells Fargo Bank.
For a used car loan, the Bank of America offers 20% down payment and an 11.2% rate. You would add to this a $75 fee and a .25% discount with auto debit.
The second lender, which is Capital One Auto Finance, offers a 6.25 % rate and a 20% down payment. There are no application fees and prepayment penalties.
Wells Fargo Bank offers an 8.88% rate and a 20% down, a $50 application fee and a .25% discount with auto debit.
At the end of the day, just compare these three rates and determine which offer would fit your budget.
Also consider the distance, mileage and the final asking price.
One more thing that you should consider when comparing rates is the number of months for you to make the payments.
There are several options. Some lenders offer a 36 month used car loan. For higher asking prices, longer payment terms are available. For a 36-month used car loan, for example, the rate offered is 8.31%. This rate increases as the number of months increase. After researching and looking through all of your options, choose the lowest rate that you can get and remember not to overspend when you have already reached a certain target budget.
A Business Plan
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
The business goals may be defined for for-profit or for non-profit organizations. For-profit business plans typically focus on financial goals, such as profit or creation of wealth. Non-profit, as well as government agency business plans tend to focus on the "organizational mission" which is the basis for their governmental status or their non-profit, tax-exempt status, respectively—although non-profits may also focus on optimizing revenue. The primary difference between Profit and Non-Profit organizations is that "For Profit" organizations look to maximize wealth versus Non-Profit Organizations, which look to provide a greater good to society. In non-profit organizations, creative tensions may develop in the effort to balance mission with "margin" (or revenue). Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. When managing a business, a business plan, or B-Plan, is often confused with the term Marketing Plan. When the existing business is to assume a major change or when planning a new venture - a 3 to 5 year business plan is essential.
The business goals may be defined for for-profit or for non-profit organizations. For-profit business plans typically focus on financial goals, such as profit or creation of wealth. Non-profit, as well as government agency business plans tend to focus on the "organizational mission" which is the basis for their governmental status or their non-profit, tax-exempt status, respectively—although non-profits may also focus on optimizing revenue. The primary difference between Profit and Non-Profit organizations is that "For Profit" organizations look to maximize wealth versus Non-Profit Organizations, which look to provide a greater good to society. In non-profit organizations, creative tensions may develop in the effort to balance mission with "margin" (or revenue). Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. When managing a business, a business plan, or B-Plan, is often confused with the term Marketing Plan. When the existing business is to assume a major change or when planning a new venture - a 3 to 5 year business plan is essential.
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