Feeling the pain from the slumping semiconductor market, Texas Instruments ( TXN ) disclosed plans on Wednesday to cut about 1,700 jobs in an effort to generate annual savings of$450 million.
The chip maker said it plans to take total charges of about$325 million, mostly in the fourth quarter, to pay for therestructuring.
TI said the move is part of management’s efforts to focus the company’s OMAP processors and wireless connectivity solutions on a broader set of applications with long life cycles. That marks a shift from TI’s historical focus on the mobilemarket, which has been hit by shrinking demand as smartphone makers increasingly build their own chips.
“Momentum is already building with new embedded applications and a broad set of customers, andwe are accelerating our efforts in these areas," Greg Delagi, senior vice president of TI’s embedded processing business, said in astatement. "These job reductions are something wedo with a heavy heart because they impact people we care deeply about.”
TI didn’t specify when the job cuts will occur but said it expects the reductions to take place around the world.
The company estimates the cost-cutting will create annual savings of about $450million by the end of 2013.
The moves come just weeks after TI reported weaker-than-expected third-quarterearnings growth of 30% and a 2% dip in sales to $3.39 billion. TI also released fourth-quarter earnings guidance that would badly miss Wall Street’s estimates.
TI said that profit outlook didn’t reflect the anticipated$325 million in restructuring charges announced on Wednesday.
Thursday, 15 November 2012
Starbucks Buys Teavana for$620M
Furthering its reach in the multi-billion-dollar specialty tea market, Starbucks ( SBUX ) on Wednesday said it is buying Teavana ( TEA ) for about $620 million in cash.
Teavana shareholders will receive $15.50 per share in cash.
Starbucks said the purchase of Teavana, which makes more than 100 varieties of premium loose-leaf teas, other artisanal teaware and related merchandise, propelsit deeper into the $40 billiontea market.
“We believe the tea category is ripe for reinvention and rapid growth,” Starbucks CEO Howard Schultz said in a statement. “The Teavana acquisition now positions us to disrupt and lead, just as we did with espresso startingthree decades ago.”
Investors seemed slightly less optimistic on the deal and pushed Starbucks’ shares down more than 2% to $49.31 shortly after the announcement. Teavana's stock soared more than 52% to $15.42.
The Teavana brand adds to Starbucks existing Tazo brand and Schultz said it gives the café operator an opportunity to create a two-tiered market position, dominating globally both coffee and tea, two of the world's biggest beverage markets.
Teavana’s 300 mall-based stores and global sourcing capabilities and merchandising will add to Starbucks' existing infrastructure. Starbucks said it intends to grow the number of Teavana retail stores and add a “high-profile neighborhood store concept,” which it is hoping will expand the tea brand’s domestic and global footprint.
In a partnership through Starbucks’ joint venture partner Alshaya, Teavana recently opened its first storein the Middle East and has plans to enter new, high-consumption tea markets around the world, the companies said in a joint statement.
Starbucks’ president of channel development and emerging brands, Jeff Hansberry, who will head the new subsidiary, said the acquisition provides Starbucks with new channelsof distribution and strengthens its core offerings.
The Seattle-based coffee company expects Teavana to be accretive to earnings by about a penny a share in fiscal 2013.
Teavana shareholders will receive $15.50 per share in cash.
Starbucks said the purchase of Teavana, which makes more than 100 varieties of premium loose-leaf teas, other artisanal teaware and related merchandise, propelsit deeper into the $40 billiontea market.
“We believe the tea category is ripe for reinvention and rapid growth,” Starbucks CEO Howard Schultz said in a statement. “The Teavana acquisition now positions us to disrupt and lead, just as we did with espresso startingthree decades ago.”
Investors seemed slightly less optimistic on the deal and pushed Starbucks’ shares down more than 2% to $49.31 shortly after the announcement. Teavana's stock soared more than 52% to $15.42.
The Teavana brand adds to Starbucks existing Tazo brand and Schultz said it gives the café operator an opportunity to create a two-tiered market position, dominating globally both coffee and tea, two of the world's biggest beverage markets.
Teavana’s 300 mall-based stores and global sourcing capabilities and merchandising will add to Starbucks' existing infrastructure. Starbucks said it intends to grow the number of Teavana retail stores and add a “high-profile neighborhood store concept,” which it is hoping will expand the tea brand’s domestic and global footprint.
In a partnership through Starbucks’ joint venture partner Alshaya, Teavana recently opened its first storein the Middle East and has plans to enter new, high-consumption tea markets around the world, the companies said in a joint statement.
Starbucks’ president of channel development and emerging brands, Jeff Hansberry, who will head the new subsidiary, said the acquisition provides Starbucks with new channelsof distribution and strengthens its core offerings.
The Seattle-based coffee company expects Teavana to be accretive to earnings by about a penny a share in fiscal 2013.
Real Estate Investment Trust (REIT)
Real Estate Investment Trust (REIT) – An organization similar to an investment company in some respects but concentrating its holdings in real estate investments. The yield is generally liberal since REITs are required to distribute as much as 90% of their income.
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Registered bond
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Registered competitive market maker
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