<font color=briwn> John, some good numbers coming out of TXN's earnings report.<font color=black>
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Texas Instruments profit up, offers strong outlook
SAN FRANCISCO, Oct 20 (Reuters) - Texas Instruments Inc. <TXN.N>, the top supplier of microchips for cellular phones, on Monday posted a sharply higher quarterly profit, helped by a sale of stock and strengthening demand for its semiconductors.
The company also gave a bullish outlook for the current quarter's sales and earnings, citing improving demand for a range of semiconductor products.
Shares of the Dallas-based chipmaker climbed almost 3 percent in after-hours trade on the strength of its outlook.
Texas Instruments forecast fourth-quarter revenue in a range of $2.49 billion to $2.70 billion and earnings per share between 14 cents and 19 cents -- both ranges well above the average Wall Street expectation.
The company posted third-quarter net income of $447 million, or 25 cents a share, including a $106 million contribution, or about 13 cents a share, from the sale of Micron Technology Inc. <MU.N> stock, compared with net income of $188 million, or 11 cents a share, a year earlier.
Revenue rose 13 percent to $2.53 billion from $2.25 billion a year earlier.
On Sept. 9, Texas Instruments, a rival of Intel Corp. <INTC.O>, Motorola Inc. <MOT.N> and STMicroelectronics <STM.PA>, had forecast third-quarter earnings per share of 20 to 22 cents, including a contribution from its sale of Micron common stock.
Additionally, the company had forecast third-quarter revenue of $2.39 billion to $2.49 billion amid strengthening demand across a broad range of its chip products.
"We're feeling better about the outlook and what the market has to offer," Texas instruments Chief Financial Officer Kevin March told Reuters in a telephone interview.
Loop Capital Markets analyst Ren Zamora said Texas Instruments' third-quarter results and fourth-quarter outlook reflected an improving market for semiconductor makers.
Texas Instruments' third-quarter semiconductor revenue rose 10 percent from the previous quarter and 16 percent from a year earlier, and the company's semiconductor orders increased 21 percent from the previous quarter and 29 percent from a year earlier.
Shares in Texas Instruments jumped to $27.65 in after-hours trading on Instinet electronic brokerage system from $25.67 on the New York Stock Exchange. During the regular session, Texas Instruments' stock gained 71 cents or 2.84 percent.
10/20/03 18:58 ET
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