Texas Instruments - Good buy now or should we wait? Message Board

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Technology Stocks : Texas Instruments - Good buy now or should we wait?

TXN 176.88

-0.1%

Dec 26 9:30 AM EST

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To: GuinnessGuy who wrote (1472)	9/24/1997 2:08:00 PM
From: tbuff	of 6180

<The only conclusion is that TXN must really be losing money on DRAM's now. I guess that the question is: how important is the DRAM business to TXN's bottom line?> It's been stated here many times that DRAM revenues are 20% of semiconductor revenues, which would make it 16% of total revenues. Let's say (from looking at MU's earnings report) that DRAM net revenues are 25% lower this quarter. 25% of 16% is 4%. Now, 4% of $1.07 - let's say $.05 a share to be generous. This is assuming no improvement in DRAM productivity and that DRAM margins are equal to other margins (not true - they've been much less). Now, TI has beaten estimates the previous 2 quarters by about 23%. This quarter, those same analysts are predicting $1.12 vs. $1.07 last quarter (0.87 was the consensus estimate last quarter). Yes, I'm sure an earnings warning is imminent.

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