Texas Instruments Inc. (NYSE: TXN) reported Monday that its second-quarter profit dropped to $672 million, or 56 cents a share, from $769 million, or 62 cents a share, in the year-ago quarter. Revenue declined to $3.46 billion from $3.5 billion. Analysts, on average, had expected the company to report earnings of 54 cents a share on revenue of $3.44 billion.
"We are pleased with the continued success of the TI portfolio in Analog and Embedded Processing. Sequential revenue growth was driven by Embedded Processing up 12 percent and Analog up 3 percent, and we believe we again gained market share in both segments," said Rich Templeton, TI's chairman, president and chief executive officer. "In the quarter, we also resumed production ahead of schedule at our Japan factories that were damaged in the earthquake, thanks to excellent work by our teams on the ground.
"We expect growth in the third quarter, but because of mixed macroeconomic and market signals we are prepared for a broader-than-normal range of growth possibilities. We note that production at some computing and consumer manufacturers appears lukewarm even though we're heading into the back-to-school and holiday seasons. At the same time, Asian distributor resales have been strong, demand from our Japanese customers is increasing and our backlog increased in the second quarter. We've planned for modest sequential growth in the third quarter, yet are prepared to support higher demand if it materializes."
Looking ahead to the third quarter, the company said it anticipates revenue in the range of $3.4 billion to $3.7 billion, and earnings of 55 cents a share to 65 cents a share.
Full Disclosure: None.
"We are pleased with the continued success of the TI portfolio in Analog and Embedded Processing. Sequential revenue growth was driven by Embedded Processing up 12 percent and Analog up 3 percent, and we believe we again gained market share in both segments," said Rich Templeton, TI's chairman, president and chief executive officer. "In the quarter, we also resumed production ahead of schedule at our Japan factories that were damaged in the earthquake, thanks to excellent work by our teams on the ground.
"We expect growth in the third quarter, but because of mixed macroeconomic and market signals we are prepared for a broader-than-normal range of growth possibilities. We note that production at some computing and consumer manufacturers appears lukewarm even though we're heading into the back-to-school and holiday seasons. At the same time, Asian distributor resales have been strong, demand from our Japanese customers is increasing and our backlog increased in the second quarter. We've planned for modest sequential growth in the third quarter, yet are prepared to support higher demand if it materializes."
Looking ahead to the third quarter, the company said it anticipates revenue in the range of $3.4 billion to $3.7 billion, and earnings of 55 cents a share to 65 cents a share.
Full Disclosure: None.
