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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: slacker711 who wrote (4999)	4/17/2000 5:30:00 PM
From: Mephisto	Read Replies (1) \| Respond to of 6180

Earnings 2 cents above whisper number!!!! Hooray! GO TI.......................... Cheers, Mephisto

To: slacker711 who wrote (4999)	4/17/2000 11:16:00 PM
From: slacker711	Read Replies (1) \| Respond to of 6180

Just some quick notes from the CC....warning, most of these are from memory. -mass market DSP rev. grew even faster than wireless....70%. I love to see this since it means that DSP growth is finally widening out and not just relying on wireless. -expect accelerating sequential rev. growth in the second quarter. They were asked about the third quarter and fourth quarter and seemed to imply that the acceleration should continue but didnt commit. -Lead times are increasing on commodity semiconductors. This has led to increasing ASP's. -R&D increased as a percentage of revs. due to the fact that TI simply divides the total R&D expenditures by four and spends that each quarter. The next couple of quarters should see R&D decline as a percentage of revs. as revs. increase. The same is true for the profit sharing. This is why there was a sequential decline in operating margins even though gross margins increased. - They estimated the mass market semicondutor (DSP?) rev. at $900m for last year....hard drives at another $900m and wireless at 1.8b. - They saw growth in laptops in March vs. Jan. and Feb., which were slow. This matches up with other computer manufacturers who saw order rates pick up at the end of the first quarter. - Operating margins expected to hit 25% by the end of the yaer. Now for some of the bad stuff.... -The other line on the income statement increased to $105m vs analysts expectations of $80m. This line is due to investment gains....and will likely fall back to a quarterly rate of $80m. The explanation was that at least some of the gains were due to the takeover of an investment property which automatically triggered the gain. -The hard drive rev. was down 19% YoY. They are experiencing market share losses....however have a new chip out (cant remember the name) which is currently being sampled. Hoping that this will stop the losses...however next quarter will also be down. That's about it....there was more but my memory is a little faulty (have to remember not to multitask when listening to CC's). ti.com Slacker