The chipmaker beat Wall Street's revenue forecast in its fourth-quarter results, released after market close on Tuesday, but announced large job cuts in its Japanese operations and its Embedded Processing business.
Texas Instruments has shifted its focus away from legacy wireless offerings, towards more lucrative analog and embedded processing products in recent years, so the workforce reduction was somewhat surprising.
March, however, said that parts of the embedded processing market are simply growing much faster than others. "Some of the technologies that we sell into are beginning to mature so the amount of investment that we have been spending on those during the growth years is no longer necessary," he told TheStreet during a phone interview. "What is growing very strongly for us is automotive use of processors, industrial market use of processors - what is flattening out or maturing is processors going into macro base stations for cell phones."
Overall, Texas Instruments' embedded processing business is performing well, according to the CFO. "If you take a look at embedded processing, it has actually been growing very strongly," he said noting that the embedded processing revenue grew 11% year over year during fourth-quarter. "There are many parts of embedded processing growing very energetically - we're continuing to invest quite energetically in those markets."
In addition to cars and industrial devices, Texas Instruments' embedded processing technologies can be found in DVD players, X-ray systems and MRI machines. The company's analog chips are sold into a broad range of products such as laptops, netbooks, servers and video surveillance equipment.