Texas Instruments profit drops, outlook weakens
DALLAS — Chipmaker Texas Instruments Inc. said Monday that its net income fell 20 percent in the third quarter. Its outlook for the current period was worse than analysts expected, and shares slipped.
TI expects earnings per share of 42 cents to 50 cents in the last three months of the year, below the 51 cents that analysts polled by FactSet predicted. It expects revenue of $2.86 billion to $3.1 billion, also below the $3.11 billion analysts forecast.
Shares dipped $1.19, or 2.9 percent, to $39. in after-hours trading Monday. The stock is up 33 percent this year, closing Monday at $40.99.
For the three months to Sept. 30, net income came to $629 million, or 56 cents per share, from $784 million, or 67 cents per share, in the same period a year ago. That beat analysts’ estimate of 53 cents per share.
Revenue fell 4 percent to $3.24 billion. Analysts expected a deeper drop, to $3.23 billion.
TI’s revenue is being hurt by declines in its legacy wireless business, which shrank to less than 2 percent of revenue in the third quarter.
Microsoft: 8.1 update issue limited to Surface RT
Microsoft Corp. said Monday that a problem caused when updating computers to Windows 8.1 RT is limited to its own Surface RT devices. It’s another knock on the machine that Microsoft has struggled to sell, even as it launches the latest version, Surface 2, starting Tuesday.
The issue was discovered over the weekend, three months after it slashed prices for Surface RT by $150 to $349, without a cover. Microsoft has booked a $900 million write-down for unsold product.
Some users who tried to download an update to the year-old Windows 8 RT operating system would find their machines would shut off during the download and become inoperable, a phenomenon known as “bricking.”
Microsoft said the problem affected less than 1 out of every 1,000 Surface RT machines.
Netflix’s earnings quadruple; stock soars
SAN JOSE, Calif. — Netflix’s earnings quadrupled as its line-up of original programming helped the Internet video subscription service attract 1.3 million more U.S. subscribers during its latest quarter.
The third-quarter results announced Monday are the latest evidence of Netflix’s increasing popularity. The Los Gatos, Calif. company ended September with 31.1 million U.S. subscribers, eclipsing the estimated 29 million subscribers that HBO’s 41-year-old pay-TV channel is believed to have in the country.
HBO, which is owned by Time Warner Inc., still has a commanding lead globally with 114 million subscribers around the world.
Discover Financial’s profit falls 8 percent
LOS ANGELES — Discover Financial Services’ net income fell 8 percent in the third quarter, as the lender set aside more funds to cover potential loan losses.
The credit card issuer also said Monday that sales volume for its namesake credit card rose 3 percent to about $28 billion in the July-September period versus a year earlier, while card loans rose 4 percent to $50.4 billion. Overall loans increased 5 percent to $62.7 billion in the quarter, which coincides with the annual back-to-school spending season.
Even so, the Riverwoods, Ill.-based company’s latest earnings just missed Wall Street expectations, and shares dropped about 2 percent in after-market trading Monday.