Texas Instruments Q3 Results

October 25 00:00 2011

New York, October 25 (RainbowNewsLine.com) – Texas Instruments (NYSE: TXN) has posted Q3 results with $3.47 billion in revenues exceeding the revised guidance of $3.23 billion-$3.37 billion. Sales during September were better than anticipated. The revenue was flat with the second quarter was down 7% from the year-ago quarter.

Texas Instruments’ wireless chip business was up 4% due to a healthy adoption of its mobile processors that are used to power a large variety of upcoming smartphones and tablets like Amazon’s AMZN and Kindle Fire. DLP projector sales also recovered. However, its embedded chip business was down 10% sequentially and analog chips were down 2%. Gross margins remained steady at 50% with a strong 24% operating margin.

Texas Instruments has forecast revenue of $3.26 billion-$3.54 billion for the fourth quarter. This estimate at the mid-point represents a 2% sequential sales decrease. TI has been selected as the mobile processor of choice in Google’s GOOG latest Android rollout, which should give the firm a first-mover advantage in a bunch of mobile devices that should hit the market very soon.

The internal chip business will be down 6% next quarter although this business is normally flat in the December quarter. The company’s internal sales forecast is consistent with the outlook announced by analog peer Maxim Integrated last week.