Texas Instruments today reported big revenue increases for the year and the quarter on strength across almost all the company's product lines, led by high demand for DSPs across the wireless, digital consumer and broadband markets.

For the market as a whole worldwide DSP revenue growth rose by 21.8 percent, compared with overall semiconductor growth of 13.9 percent, according to iSuppli. TI reaped the benefits of this surge in demand for DSP devices

For Q4, TI saw revenue of $2.77 billion, a 9 percent sequential increase and a 29 percent increase year-over-year. Earnings per share in Q4 reached 29 cents, including a 7-cent contribution from the sale of Micron Technology stock and a 2-cent contribution from a reduction in the company's estimated taxes.

For the year TI revenue climbed to $9.834 billion, up 17 percent from 2002.

Semiconductor revenue in Q4 increased 16 percent sequentially and 34 percent year-over-year due to strong demand for DSP and analog products, TI said in a statement. For the year, semiconductor revenue grew 2 percent, also on DSP strength.

TI said that higher shipments into the wireless market provided the most significant source of growth. That market increased 23 percent sequentially in Q4, 41 percent year-over-year, and 32 percent for the year.

"For the year, TI's operating activities generated more than $2 billion in cash flow," said Tom Engibous, TI chairman, president and CEO, in a statement. "We started the year with a very healthy balance sheet and it grew significantly stronger as the market gained momentum through the course of the year."

For Q4, gross profit margin was 43.1 percent of revenue, up 2.4 percent sequentially and 7.3 from the same period a year ago, due to higher utilization rates.

For the year, the gross profit margin was 40.3 percent of revenue, up 29 percent from 2002, due to higher revenue, the company said.

Orders increased 16 percent sequentially to $3.076 billion in Q4 and 47 percent from a year ago due to semiconductor order strength. Semiconductor orders were up 20 percent sequentially to $2.744 billion. The book-to-bill ratio rose to 1.12 in Q4

For the year orders rose to $10.344 billion, a 23 percent increase over 2002, with semiconductor orders rising even faster – 27 percent to $8.854 billion.

Inventory at the end of Q4 decreased $11 million sequentially to $984 million, and increased by $194 compared with the end of 2002.

For its Q1, TI expects revenue of between $2.72 billion to $2.95 billion. Semiconductor revenue is expected between $2.40 billion and $2.60 billion. Earnings per share are forecast to in the range of 16 cents to 22 cents per share.

TI anticipates spending about $2.0 billion on research and development in 2004, and about $1.1 billion on capital expenditures, much of which will be spent on 90 nm and 65 nm mask lithography and on test and assembly.

By: DocMemory
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