Growth in analog and embedded sales gets TI 8% quarterly growth
Analog and mixed-signal semiconductor leader Texas instruments has posted a quarterly revenue of US$3.05 billion and a net income of US$660 million for its second quarter of 2013, a revenue growth of 8% compared to the previous quarter. TI is focusing on analog and embedded which is giving a good growth and also increase in market share. TI's wireless revenue shrinking fast and is getting away from that market.
Rich Templeton TI's Chairman Pres and CEO said:
"Our revenue ended the quarter as expected, up 6 percent sequentially. Excluding legacy wireless, revenue grew 8 percent; our positions in industrial and automotive markets were important contributors to the sequential growth in revenue. Additionally, backlog increased, and with it, visibility into the second half improved.
"Analog and Embedded Processing are now 78 percent of revenue, 6 points higher than a year ago. Our legacy wireless products declined to less than 5 percent of revenue and should be below 2 percent in the third quarter. Silicon Valley Analog (formerly National Semiconductor) led our Analog growth and is gaining share, one year ahead of plan.
"Our business model continues to generate strong cash flow from operations. Free cash flow for the trailing 12 months was almost $3 billion, up 10 percent compared with a year ago. Free cash flow comprised 24 percent of revenue, which is consistent with our target of 20-25 percent.
"We returned $1.0 billion to shareholders through dividends and stock repurchases in the second quarter. For the trailing 12 months, the return to shareholders totaled $3.6 billion, or 123 percent of free cash flow. Our strategy to return to shareholders all of our free cash flow not needed for debt repayment reflects our confidence in the long-term sustainability of our Analog and Embedded Processing business model.
"Our balance sheet remains strong, with $3.2 billion of cash and short-term investments at the end of the quarter, 82 percent of which is owned by the company's U.S. entities, even after reducing debt by $500 million. Inventory days were 105, up from 101 a year ago, and consistent with our model of 105-115."
Outlook by TI for the next quarter is conservatively positive, below is Outlook by TI:
Revenue: $3.09 – 3.35 billion
Earnings per share: $0.49 – 0.57