(Source: Datamonitor)
Chip maker Texas Instruments (TI) has reported a 4% decline in net income to $538m for the third quarter 2009, compared to a net income of $563m in the year-ago quarter. Revenue declined 15% to $2.8 billion. The fall was attributed to declines across all segments, particularly in the wireless segment.
Operating income increased 2% to $763m, while diluted EPS declined 2% to $0.42. Orders fell 4% to $3.11 billion and cash flow from operations declined 20% to $834m from $1.04 billion in the same period last year. The company repurchased 10.5 million shares of its common stock for $251m and paid dividends of $138m during the quarter.
The company said analog revenue fell 8% to $1.18 billion, and embedded processing revenue declined 8% to $393m. Wireless revenue fell 26% to $675m, and revenue from others fell 17% to $628m.
During the quarter, TI made a stalking horse bid to acquire the semiconductor manufacturing assets of the bankrupt US subsidiary of Germany-based Qimonda for $172.5m to strengthen infrastructure for its analog chip business.
Rich Templeton, chairman, president and CEO at TI, said: "Our performance in the quarter exceeded our expectations and was led by a second consecutive quarter of 20% growth in Analog. This revenue growth, combined with our early actions to pare costs so that we would not be dependent upon an uncertain rebound in the overall economy, has resulted in solid improvements in our profitability."
Looking ahead to the fourth quarter, the company expects revenue between $2.78 billion and $3.02 billion and EPS between $0.42 and $0.50.
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