10.22.15
Texas Instruments (TI) reported third-quarter revenue of $3.43 billion, net income of $798 million and earnings per share (EPS) of 76 cents.
“Revenue declined 2% from a year ago,” said Rich Templeton, TI’s chairman, president and CEO. “While our overall demand remained weak, revenue was stronger than we expected. Our core businesses of Analog and Embedded Processing each grew year over year. Together, they comprised 85% of third-quarter revenue and have delivered nine consecutive quarters of year-over-year growth.
“Gross margin was 58.2% of revenue, reflecting the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter analog production,” Templeton noted. “Our cash flow from operations once again underscored the strength of our business model. Free cash flow for the trailing 12 months was up 4% from a year ago to $3.6 billion. This represents 28% of revenue, up from 27% a year ago, and is consistent with our targeted range of 20-30% of revenue.
“Our balance sheet remains strong with $2.7 billion of cash and short-term investments at the end of the quarter, 82% of which was owned by the company’s U.S. entities. Inventory ended the quarter at 111 days,” he added. “TI’s fourth-quarter outlook is for revenue in the range of $3.07 billion to $3.33 billion, and earnings per share between 64 and 74 cents.”
“Revenue declined 2% from a year ago,” said Rich Templeton, TI’s chairman, president and CEO. “While our overall demand remained weak, revenue was stronger than we expected. Our core businesses of Analog and Embedded Processing each grew year over year. Together, they comprised 85% of third-quarter revenue and have delivered nine consecutive quarters of year-over-year growth.
“Gross margin was 58.2% of revenue, reflecting the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter analog production,” Templeton noted. “Our cash flow from operations once again underscored the strength of our business model. Free cash flow for the trailing 12 months was up 4% from a year ago to $3.6 billion. This represents 28% of revenue, up from 27% a year ago, and is consistent with our targeted range of 20-30% of revenue.
“Our balance sheet remains strong with $2.7 billion of cash and short-term investments at the end of the quarter, 82% of which was owned by the company’s U.S. entities. Inventory ended the quarter at 111 days,” he added. “TI’s fourth-quarter outlook is for revenue in the range of $3.07 billion to $3.33 billion, and earnings per share between 64 and 74 cents.”