Tuesday, July 20, 2010
Texas Instruments Inc. Monday (July 19) reported sharp increases in sales and net income and in the second quarter, as well as the company's highest-ever operating profit.
TI said sales for the second quarter hit $3.5 billion, up 9 percent compared with the first quarter and up 42 percent compared with the second quarter of 2009. TI (Dallas) reported a second quarter net income of $769 million, or 62 cents per share, up 17 percent compared to the first quarter and up 196 percent compared with the second quarter of 2009.
Both revenue and earnings for the second quarter were in line with consensus analyst expectations.
TI reported sequential and year-to-year gains across all market segments. Revenue from analog products exceeded $1.51 billion, up 11 percent sequentially and up 56 percent year-to-year.
Operating profit for the second quarter was $1.1 billion, the highest that TI has ever recorded, according to Kevin March, TI vice president and chief financial officer.
TI is one of several chip vendors that has been dogged by tight supply, forcing customers to wait for part delivery. Inventory remains low by historical standards, as it has for the past several quarters, said Ron Slaymaker, TI vice president and head of investor relations, in an analyst conference call following the second quarter report. But March said TI has been pulling in lead times for many parts, giving customers confidence that they don't have to place orders quite as early.
"We continue to make progress as we bring more capacity online," March said. He added that TI is hearing anecdotal evidence that some competitors have been experiencing extended lead times.
For the third quarter, TI said it expects to report revenue of between $3.55 billion and $3.85 billion, with earnings per share of between 64 and 74 percent. Analysts have been forecasting that TI's third quarter revenue would be about $3.6 billion, according to Yahoo Finance.
By: DocMemory
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