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TI's quarterly profits drop amid slowdown in DSP orders

Posted: 19 Apr 2004 ?? ?Print Version ?Bookmark and Share

Keywords:dsp? nokia? texas instruments? digital light processing? dlp?

Hit by a slowdown in orders from its largest DSP customer - Nokia Corp. - Texas Instruments Inc. Wednesday (April 14, 2004) reported a net of $367 million, or $0.21 per share for the first quarter, down from $512 million, or $0.29 per share in the previous quarter and $117 million, or $0.07 per share in the same period a year ago.

TI reported first-quarter 2004 revenue of $2.936 billion, an increase of 6 percent sequentially and 34 percent from last year. Income was down $145 million sequentially, due in part to the prior quarter's gain from the sale of Micron stock.

For 2004, TI expects R&D to be about $2.1 billion, up from the prior estimate of $2 billion. Capital expenditures are to be about $1.3 billion, up from the prior estimate of $1.1 billion.

In the first quarter, TI's semiconductor revenue hit $2.574 billion, up 5 percent sequentially and up 38 percent from the like period a year ago. Orders were $2.81 billion, up 2 percent sequentially and 47 percent from a year ago.

This was due to higher demand for digital light processing (DLP) and high-performance analog products. The demand offset a decline in wireless and lower demand from Nokia.

DSP revenues decreased 6 percent sequentially and increased 35 percent from the year-ago quarter primarily due to demand in the wireless market. Catalog DSP revenue grew 33 percent sequentially and 49 percent compared with the year-ago quarter due to higher demand.

Tom Engibous, TI's outgoing chairman, president and CEO, remained bullish. "Shipments increased across most product lines and end markets," he said in a statement. "Notably, high-performance analog and DLP are both becoming major contributors to TI's growth and bottom line. Revenue from DLP products reached a record level as TI's technology continued to penetrate the business projector and high-definition television markets with an increasing array of customer brands and retail presence."

For the second quarter of 2004, TI expects revenue to between $3.085 billion to $3.325 billion.

- Mark LaPedus

Silicon Strategies

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