More TXN......TI hikes capital spending to $2.5 billion after
strong start to 2000
Semiconductor Business News
(04/17/00, 07:32:58 PM EDT)
DALLAS -- With revenues growing 27% in the first quarter from a year ago, Texas
Instruments Inc. today announced an increase in capital spending plans to $2.5
billion in 2000, up $500 million from its original budget of $2.0 billion set earlier
this year. The $2.5 billion target is 79% higher than TI's capital expenditure of $1.4
billion in 1999.
"This is a good start to 2000," declared Tom Engibous, chairman, president and
CEO of TI. "Internet and communications applications continued to be our largest
growth drivers, reinforcing the importance of programmable digital signal
processors (DSPs) and analog products to the Internet age."
For the first quarter, ended March 31, TI's revenues reached $2.7 billion, a 27%
increase from $2.1 billion in the same period last year. Sequentially, TI revenues
were 4% higher than they were in the final quarter of 1999.
TI's net income was $426 million vs. $255 million in the first quarter of 1999. DSP
revenues were up 50% in the first quarter from a year ago. Analog chip sales were
25% higher than a year ago, according to the Dallas chip company.
Semiconductor revenues at TI were 30% higher than a year ago in the first quarter,
reaching $2.3 billion from $1.7 billion. TI said its chip sales were 3% higher than
sales in the previous quarter.
TI said it was increasing capital spending for production because of
"management's outlook for strong continued demand for its DSP and analog
products." The company said it anticipates accelerating sequential revenue growth
in the second quarter.
During the first quarter, TI said its DSP sales broke a historical seasonal growth
pattern, increasing sequentially 2% from revenues in the fourth quarter. The
sequential growth was driven by a 20% increase in sales from catalog DSP
products for the mass market--such as cellular phones--which more than offset
weakness in hard disk drive applications, said TI. Analog revenue growth in the
first quarter was up slightly from the fourth quarter of 1999 primarily because of
weakness in hard disk drives and to some extent notebook computers, TI said.
First-quarter semiconductor orders were up 28% from a year ago, and 3% higher
from the fourth quarter last year, according to TI. |
