Analogue, embedded drive TI revenue

Texas Instruments reported first quarter sales of $2.89 billion, down 3 per cent from the previous quarter and down 8 per cent from the first quarter of 2012. The company reported a net income for the quarter of $362 million, or 32 cents per share, up 37 per cent from the previous quarter and up 45 per cent compared with the first quarter of 2012.

TI said revenue from analogue and embedded processing made up 77 per cent of the firm's total revenue in the first quarter, up from 72 per cent in the first quarter of 2012.

"Our revenue and earnings ended the quarter at the high end of our expected range," said Rich Templeton, TI's president and CEO, in a statement.

Templeton said customers continue to operate in real-time mode, maintaining lean component inventories and ordering parts as needed. "Our short product lead times, well-positioned inventory and ready manufacturing capacity allow us to respond rapidly to changes in demand," Templeton said.

TI said it expects second quarter sales to increase to between $2.93 billion and $3.17 billion. The company expects earnings per share for the second quarter to be between 37 and 45 cents.

Christopher Rolland, an analyst with FBR Capital Markets, said in a report circulated Tuesday (April 23) that TI's first quarter sales and second quarter sales target slightly exceeded expectations. More importantly, Rolland said, TI demonstrated better-than-expected gross margin leverage—first quarter gross margin of 47.6 per cent—and cost savings from its wireless restructuring.

"Interestingly, the company also stated that sales into the industrial end market were recovering nicely, a data point contrary to commentary we have heard from others reporting this season," Rolland wrote.

- Dylan McGrath
??EE Times