Texas Instruments Inc., the world's No. 1 maker of computer chips for mobile phones, reported a fourth-quarter loss of $116 million on Monday, but said it expects a breakeven current quarter with semiconductor sales climbing after a long slump.

The Dallas-based manufacturer posted a pro forma loss of $105 million, or 6 cents a share, compared with a profit of $549 million, or 31 cents a share, in the year-earlier quarter.

On that basis, analysts surveyed by Thomson Financial/First Call had expected the Dallas-based company to lose 9 cents per share.

Revenue was $1.79 billion, 41 percent below a year ago but slightly higher than analysts had expected.

The company had warned that revenue would fall 10 percent from the previous quarter because of weak semiconductor sales and seasonal slowing in calculators bought by students, but the actual decline was 3 percent.

The financial results were released after the end of regular trading on the New York Stock Exchange, where TI shares rose 95 cents to $28.40. Shortly after the report, shares rose another 95 cents in after-hours trading.

Earlier Monday, Credit Suisse First Boston upgraded TI's stock from "hold" to "buy," saying sales had either hit bottom or something close to it and would begin to improve.

For all of 2001, Texas Instruments lost $201 million, or 12 cents per share, compared to a 2000 gain of $3.09 billion, or $1.78 per share.

Full-year revenue was $8.20 billion, down from $11.88 billion in 2000.

The company indicated it will sharply cut back spending this year. It pegged capital expenditures at $800 million, compared to $1.8 billion in 2001.

Reuters and the Associated Press contributed to this report.