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Texas Instruments profit, revenue tumble on shrinking demand

Tuesday, April 21st, 2009

Shares in Texas Instruments Inc. fell Tuesday after the chip maker reported that first-quarter profit and revenue tumbled as competition heightened and demand for its chips shrank amid the recession.

Texas Instruments has a plant in Tucson.

In reporting financial results Monday, the company said customers have begun to whittle down inventories of TI’s chips, which are used in cell phones and other gadgets. Orders for TI chips have risen each month since hitting bottom in December.

The results beat the company’s own expectations as well as Wall Street’s, but executives stopped short of declaring a rebound.

“We remain cautious,” said Ron Slaymaker, vice president of investor relations. “What we’re really watching for are broad-based increases in consumption and we’re not seeing that today.”

Shares fell 30 cents, or 1.7 percent, to $17.02 in morning trading Tuesday, when many tech stocks rose.

The Dallas-based chip maker posted a profit of $17 million, or 1 cent a share, during the first quarter, down 97 percent from $662 million, or 49 cents a share, in the same period last year.

Excluding a restructuring charge for job cuts, TI earned 7 cents a share during the latest period. Analysts polled by Thomson Reuters expected a profit of 3 cents a share.

Revenue tumbled 36 percent to $2.09 billion from $3.27 billion. Analysts expected revenue of $1.9 billion.

TI’s profit and revenue estimates for the second quarter were rosier than Wall Street forecasts. The company projected a profit of 1 cent to 15 cents a share, compared with the analyst estimate of 2 cents a share. TI’s estimate includes a charge of 5 cents a share for restructuring costs.

The company estimated second-quarter revenue of $1.95 billion to $2.4 billion, compared with the analyst estimate of $1.94 billion.

Demand for TI’s chips has shrunk amid the recession, prompting deep job cuts. Slaymaker said the company remains committed to plans announced in January to cut 3,400 jobs, or 12 percent of its work force, through layoffs or attrition.

TI expects annual savings of $700 million when combined with another round of cuts announced in October to eliminate 650 jobs.

Still, there have been some encouraging signs.

Last month, TI revised its estimate of first-quarter revenue toward the high end of its January prediction, suggesting that sales were not as weak as the company initially feared. TI has lost its dominant grip on the market for chips that run many functions of cell phones. Nokia Corp., the world’s largest handset maker and a major TI customer, has shifted to multiple suppliers.

TI has turned its focus to other areas: Its largest division makes “analog” chips used in digital music players and other gadgets, while its “embedded” division makes small computers that go into machinery and cars.

Ex-border agents on run for 2 years held in Mexico

Tuesday, October 21st, 2008

PASADENA, Calif. – Two former Border Patrol agents were arrested in Mexico after more than two years on the run and were charged in the U.S. with taking bribes to help illegal immigrants cross the border, authorities said Monday.

A federal indictment unsealed Monday in San Diego accuses brothers Raul and Fidel Villarreal of taking bribes, smuggling illegal immigrants, tampering with witnesses and conspiring to launder money.

The brothers were captured by Mexican authorities Saturday at a gated apartment complex near the U.S. Consulate in Tijuana, said Mike Unzueta, special agent in charge of investigations at U.S. Immigration and Customs Enforcement in San Diego. They vanished in July 2006.

“I think they were very, very surprised,” Unzueta said.

ICE spokeswoman Lauren Mack said Raul, who was a Border Patrol spokesman, looked as if he had aged 10 years.

The indictment charges that Raul, 39, and Fidel, 40, picked up illegal immigrants in their Border Patrol vehicles and released them since at least the spring of 2005.

The U.S. attorney’s office in San Diego said it would seek to extradite the Villarreal brothers and two others charged in the indictment, a Mexican man and woman who were also arrested Saturday at the apartment in connection with the alleged smuggling operation.

“Those who betray their offices and the public trust will find this office’s pursuit of justice thorough, unrelenting and uncompromising,” said U.S. Attorney Karen Hewitt.

An attorney for Raul Villarreal, Jan Ronis, said his client would plead not guilty.

The Villareals are naturalized U.S. citizens from Mexico, which means they can be deported, Ronis said.

“There is no need to go through extradition proceedings,” Ronis said. “That would be time-consuming and expensive and they can simply be deported.”

The Villarreals were veteran agents in the San Diego area. Raul served as a public face for the agency, often granting interviews to Spanish-language media.

The former agents are suspected of helping to smuggle Mexicans and Brazilians into the United States, Unzueta said. It was unclear how long or how many people were allegedly involved.

Their disappearance in July 2006 derailed the investigation, which was led by ICE.

“We’re interested to see what happens next,” said Border Patrol spokesman Daryl Reed. The allegations, he said, “were a complete shock to all of us.”

Mexico’s attorney general office in Tijuana did not respond to a request for comment.

A federal law enforcement official, who spoke on condition of anonymity due to the sensitivity of the investigation, previously told the AP that the brothers failed to show up for work one Monday morning in July 2006 and later told supervisors they were quitting due to a family illness.

The indictment handed down in April also charges that Armando Garcia, 40, served as a foot guide in the operation and that he and Claudia Gonzalez, 32, bribed the Border Patrol agents. Besides bribery, the Tijuana residents were also charged with smuggling illegal immigrants, witness tampering and conspiring to launder money.

The indictment says the Villarreal brothers and the other defendants threatened witnesses in the grand jury investigation with “physical force.”

The AP could not locate attorneys for Fidel Villarreal, Garcia or Gonzalez.

Police kill 17 at Tijuana prison; 2nd riot in days

Friday, September 19th, 2008

TIJUANA, Mexico – Hundreds of anxious families waited outside Tijuana’s infamous La Mesa State Penitentiary for word on their loved ones Thursday after police killed 17 prisoners to regain control of the facility.

Wednesday’s riot was the second deadly melee in four days at the prison just across the U.S. border from San Diego.

Thirteen prisoners were shot to death and four others died from injuries sustained in the melee, said Rommel Moreno, the attorney general of Mexico’s Baja California state. Officials initially reported 19 inmates died, but Moreno said that figure was mistaken. He said 45 people were injured, including prisoners, guards and police.

Blaming prison troublemakers for the uprisings that killed a total of 21 inmates, state authorities immediately transferred 250 inmates to other prisons in Tecate and Ensenada.

But relatives of the inmates say they rioted again because they were not given food or water since Sunday.

Francisco Javier Sanchez, the state’s human rights ombudsman, said the riot Wednesday began in the women’s section of the prison after they were served spoiled eggs for lunch and given no water.

Sanchez said human rights workers counted 166 injured inmates from Sunday’s uprising, some with gunshot wounds, multiple bone fractures and bruises.

He said authorities failed to address the prisoners’ complaints and “thought the situation was under control but it wasn’t.”

He said 80 percent of the prison was destroyed, although other officials said the destruction was not that widespread.

After waiting days outside the prison, families started receiving word Thursday on the fate of their loved ones. About a dozen government workers sat at a long table in a shaded parking area near the prison, checking lists of names.

Mike Apodaca, 55, of San Diego, said he has been waiting since Monday morning for news on his son, Michael John Apodaca, 25, who was charged with drug possession about four months ago. He was relieved to learn that his son’s name was not on any list of dead or injured, although authorities had not accounted for his whereabouts.

“I’m worried,” he said, choking up. “I want to know where he is.”

Apodaca’s son is one of 256 U.S. citizens jailed at La Mesa.

Two American inmates were wounded — one of them shot in the face — said Charles Smith, a spokesman at the U.S. Consulate in Tijuana. Smith said the consulate was trying confirm a prison official’s report that an American was among the dead.

Apodaca said his son told him he shares a six-person cell with about 30 other men in the overcrowded prison.

“He said they got roaches that bite them all the time,” he said. “They got rats as big as cats.”

The earlier riot erupted Sunday after a guard killed a 19-year-old inmate, said Augustin Perez, the spokesman for the state Public Safety Department. The inmate had confronted three guards after they found drugs and cell phones in his prison cell. One of the guards was arrested and the other two are being sought, Perez said.

State investigators suspended La Mesa’s warden and two other top prison officials pending an investigation of irregular conduct. Perez said he did not have details of the allegations and that such investigations are routine after a riot.

La Mesa has long been held up as the quintessential example of what’s wrong with Mexico’s corrupt and overcrowded prison system. Its inmates gained worldwide notoriety after they built and ran their own city inside the penitentiary’s sprawling courtyard, buying and selling townhomes, running shops and hiring prostitutes.

Federal police bulldozed the village in 2002 under former President Vicente Fox. But the overcrowded prison held onto its reputation for violence and ungovernability.

The prison was built to hold 4,000 inmates but currently holds 8,100, said Daniel de la Rosa, the state public safety secretary.