Texas Instruments' CEO Brian Crutcher resigns for violating the company's code of conduct

CEO Brian Crutcher has resigned from the chip maker Texas Instruments Inc (NASDAQ:TXN) as well as its board of directors for violating the company’s code of conduct.

Rich Templeton, Texas Instrument’s chairman, will re assume the roles of president and chief executive in the wake of Crutcher’s departure. The company said his appointment is “not temporary and the board is not searching for a replacement.”

The only detailed comments made about Crutcher’s departure was that his alleged violations of the company’s code of conduct related to “personal behavior that is not consistent with our ethics and core values”.

Crutcher had only been in the job for less than two months as he had been named president and CEO of TI at the start of June, when he replaced Templeton.

Separately, TI also posted second-quarter revenue of US$4.02bn, which was over a 9% jump from the same-period last year. Its earnings per share swung to US$1.40, which included a tax benefit of 3 cents per share that wasn’t mentioned in its original guidance.

Despite the management shake-up, Tristan Gerra, a senior research analyst with Baird Equity Research, remains somewhat bullish on the company.

He argues that 2018 is “shaping up as another year of semiconductor revenue growing double digits, leading us to remain positive on the group for this year.”

The risks for the company which Gerra outlines include the possibility of market share loss in key markets due to competition as well as pricing pressures.

“Lower-end analog integrated circuits and discrete products are commodity semiconductors and can be subject to intense pricing pressures,” he wrote in a note to investors.

“Pricing pressures represent a risk to revenue and gross margin,” he added.

Gerra is keeping a Neutral rating and a US$115 price target on the stock.

Based in Dallas, Texas, TI is one of the biggest chipmakers, with a market cap of over $113bn.

Story by ProactiveInvestors