The company also said that it expected to moderately increase production levels in its factories in the current quarter.
Shares rose to $18.05, or more than 4 percent, in late trade after closing at $17.32 in the regular session on the New York Stock Exchange.
TI posted a profit of $17 million or 1 cent a share, compared with a profit of $662 million or 49 cents per share in the year-ago quarter. Revenue fell 36 percent to $2.09 billion from $3.27 billion in the year-ago quarter.
The maker of chips for everything from cell phones to industrial equipment had forecast first quarter results ranging from a loss of 8 cents per share to break-even on revenue of $1.79 billion to $2.05 billion.
Analysts on average had expected a net loss of 4 cents per share on revenue of $1.9 billion, slightly below the midpoint of TI's guidance range, according to Reuters Estimates.
It forecast current quarter earnings per share of 1 cent to 15 cents on revenue of $1.95 billion to $2.40 billion.
TI trails Qualcomm Inc
(Reporting by Sinead Carew; Editing Bernard Orr)