TXN NEWS: In the first quarter, TI started high-volume production of DSPs for broadband applications. The company has a 48 percent share of the programmable DSP market, more than its two nearest competitors, Lucent Technologies Inc. (LU: Research, Estimates) and Motorola Inc. (MOT: Research, Estimates), combined. The use of DSPs is projected to grow 30 percent a year, with the market growing from $4 billion in 1999 to $13 billion in 2003, driven by the explosive growth of cell phone use and the Internet.
TI sees second quarter revenue growth
TI's orders in the first quarter rose 26 percent to $2.88 billion from $2.28 billion in the year-ago quarter and were up 5 percent from the fourth quarter, primarily because of strong demand for the company's semiconductors.
TI said in its earnings report, released after the market closed Monday, that it expects "accelerating sequential revenue growth overall" in the second quarter, as it enters a seasonally stronger period in all of its business segments, with the semiconductor segment driving most of the growth.
The company said that revenue from chips for wireless phones and broadband Internet access equipment is expected to accelerate in the second quarter, but revenue from chips used to control hard disk drives is expected to decline in the period.
For the year 2000, TI said it expects "robust growth" to continue in its semiconductor business, driven by strength in communications equipment markets, including wireless and broadband. By the end of the fourth quarter, TI expects its operating margin to reach 25 percent, not including one-time charges and the amortization of goodwill.
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