Second-Quarter Revenue Up 13% to $3.69 Billion at TI
Texas Instruments Incorporated (TI) today reported second-quarter revenue of $3.69 billion, net income of $1.06 billion and earnings per share of $1.03. Regarding the company’s performance and returns to shareholders, Rich Templeton, TI’s chairman, president and CEO, made the following comments:
“Revenue increased 13 percent from the same quarter a year ago. Demand for our products continued to be strong in the automotive market and continued to strengthen in the industrial market.
“In our core businesses, Analog revenue grew 18 percent and Embedded Processing revenue grew 15 percent from the same quarter a year ago. Operating margin increased in both businesses.
“Gross margin of 64.3 percent reflected the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter analog production.
“Our cash flow from operations of $4.6 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the trailing 12 months was $4.0 billion and represents 28.5 percent of revenue.
Earnings summary (amounts are in millions of dollars, except per-share amounts):
“We have returned $4.1 billion to owners in the past 12 months through stock repurchases and dividends.
“Our balance sheet remains strong with $3.0 billion of cash and short-term investments at the end of the quarter, about 80 percent of which was owned by the company’s U.S. entities. Inventory ended the quarter at 133 days.
“TI’s third-quarter outlook is for revenue in the range of $3.74 billion to $4.06 billion, and earnings per share between $1.04 and $1.18, which includes an estimated $20 million discrete tax benefit.”