Monsier de Trash.... bon jour, it looks like INTC has not really broken the middle tine of the Andrew's pitchfork that you had pointed out.
TXN is certainly indicating a pick up in business going forward.
The big rage is making these new 130 nanometer chips out of copper. That's were the real growth is,
Additionally in the quarter, TI began production in its newest and most advanced semiconductor wafer fabrication facility, DMOS6, in Dallas. This facility produces circuits in 130-nanometer lithographies using copper interconnects on 300-millimeter diameter wafers. These advanced technologies will allow the company to produce integrated circuits that have higher performance levels, consume less power and cost less to produce.
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Monday April 15, 4:30 pm Eastern Time
Press Release
SOURCE: Texas Instruments Incorporated
TI Reports 1Q02 Financial Results
- Revenue Up 2% Sequentially - GAAP Loss Per Share Narrows to $0.02; Pro Forma EPS of $0.01 - Orders Increase 20%; Book-to-Bill Rises Above 1.0 - Revenue Expected to Increase About 10% Sequentially in 2Q02
Conference Call on TI Web Site at 4:30 p.m. Central Time Today www.ti.com
DALLAS, April 15 /PRNewswire-FirstCall/ -- Texas Instruments Incorporated (NYSE: TXN - news) today reported first-quarter financial results that improved sequentially, driven by progress in its Semiconductor business. The company's orders grew 20 percent, to $1905 million, putting the book-to-bill ratio for TI and each of its three business segments above 1.0. As a result, the company expects total revenue to grow about 10 percent in the second quarter, compared with the first.
Revenue for TI grew $41 million sequentially in the first quarter, to $1827 million, half due to Semiconductor and the other half due to Sensors & Controls and Educational & Productivity Solutions (E&PS). Inside Semiconductor, revenue from TI's Analog products grew 8 percent sequentially, driven by shipments into the computing market, while DSP grew 7 percent, driven by strength in wireless. Semiconductor orders grew 18 percent sequentially, and Analog orders were particularly strong with growth of more than 30 percent.
For the company, gross margin and operating margin each made double-digit gains sequentially as factory utilization increased, depreciation expense decreased, and TI continued its tight control on costs. Other income/interest was negative in the quarter due to investment write-downs.
``We have turned the corner toward growth. TI's shipments, affected by liquidation of excess inventory in 2001, are accelerating as they catch up to the rate of our customers' shipments,'' said Tom Engibous, TI chairman, president and CEO. ``Beyond that, growth will be driven by improvements in our customers' end-equipment markets. The key driver for improvement will be a stronger economy, which will lead to more normal levels of global corporate spending. Increased spending will allow corporations to start closing the gap between current productivity levels and the higher efficiency that new technology enables. This combination of higher corporate spending and improved productivity will have a self-reinforcing effect throughout the economy.''
Additionally in the quarter, TI began production in its newest and most advanced semiconductor wafer fabrication facility, DMOS6, in Dallas. This facility produces circuits in 130-nanometer lithographies using copper interconnects on 300-millimeter diameter wafers. These advanced technologies will allow the company to produce integrated circuits that have higher performance levels, consume less power and cost less to produce.
``We have put in place the industry's most advanced process and manufacturing technologies, which are ramping in sync with the return of customer demand. We are shipping digital baseband chips for 2.5G wireless handsets on our 130-nanometer process, as well as advanced basestation and broadband DSP solutions using the same process technology. Additionally, we are distributing development tools for customers to design systems-on-a-chip using our recently announced 90-nanometer process technology,'' Engibous said. ``As market recovery combines with the strength of TI's technology, products and manufacturing, we believe our investors will like the results.''
Statement of Operations Selected Items
(In millions of dollars, except per-share amounts)
GAAP Pro Forma*
For Three Months Ended For Three Months Ended
Mar. 31 Mar. 31 Dec. 31 Mar. 31 Mar. 31 Dec. 31
2002 2001 2001 2002 2001 2001
Net revenues $ 1827 $ 2528 $ 1786 $ 1827 $ 2528 $ 1786
Cost of revenues 1216 1505 1371 1194 1452 1348
Gross profit 611 1023 415 633 1076 438
Gross profit %
of revenues 33.4% 40.5% 23.3% 34.6% 42.6% 24.5%
Research and
development (R&D) 388 446 383 374 427 364
R&D % of revenues 21.3% 17.6% 21.4% 20.5% 16.9% 20.4%
Selling, general
and admin (SG&A) 267 348 301 259 309 269
SG&A % of revenues 14.6% 13.8% 16.9% 14.2% 12.2% 15.0%
Profit (loss)
from operations (44) 229 (269) 0 340 (195)
Operating income
% of revenues (2.4%) 9.0% (15.1%) 0% 13.5% (10.9%)
Other income/
interest (3) 91 1 (2) 89 (8)
Income (loss)
before income
taxes (47) 320 (268) (2) 429 (203)
Provision
(benefit) for
income taxes (9) 90 (152) (26) 112 (98)
Income (loss) $ (38) $ 230 $ (116) $ 24 $ 317 $ (105)
Earnings (loss)
per common
share(EPS) $ (.02) $ .13 $ (.07) $ .01 $ .18 $ (.06)
* Pro forma supplemental income (loss) information is prepared by
beginning with the Consolidated Statement of Operations, which is
prepared in accordance with U.S. generally accepted accounting
principles (GAAP), and then excluding amortization of acquisition-
related costs, purchased in-process R&D costs, special charges and
gains, and income tax adjustments. See notes to the financial tables
for details. The effect of these amounts is partially offset, as
appropriate, by their allocated profit sharing and income tax effects.
The company believes that pro forma information conveys useful trends
and comparisons of the company's operations.
The company's balance sheet remained strong, with total cash of $3449 million and low debt. Cash flow from operations was $296 million, and free cash flow (cash flow from operations minus capital expenditures) was $176 million. Inventory increased by $17 million, to $768 million, as E&PS increased inventory to support the seasonally strong second-quarter demand for educational calculators......
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