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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (98200)	4/18/2000 5:23:00 AM
From: puborectalis	Read Replies (1) \| Respond to of 108040

TXN is a must........"The first quarter was a good start for TI," Bill Aylesworth, chief financial officer, said in a conference call. "The top 5 reasons for that are we broke historical trends, our gross margin was up, broadband communication revenue more than doubled from the fourth quarter to the first quarter, we saw excellent growth in the products we sell to the mass market, and in February, we introduced the highest-performance and lowest-power DSPs." TI increased production of its digital signal processors for broadband applications during the quarter. Also in the first quarter, TI announced two new cores to enhance the DSPs. DSP revenue rose 50 percent from the year-ago period and 2 percent from the fourth quarter, breaking the seasonal trend of declining revenue from the last quarter of 1999 to the first quarter of 2000. Gross margin expanded to 49.5 percent, a gain of 3 percent. While operating margin was down sequentially by 0.4 percent to 21.7 percent, Aylesworth said that the company still expects to reach a margin of 25 percent by the end of the year. Aylesworth also said the company remains on track to ship a million application digital subscriber line modem ports through the first half of 2000. In his analyst's report, Wu wrote that "we find the semiconductor industry fundamentals stronger than at anytime since 1993, with unseasonal strength in first quarter 2000 propelled by robust end-market demand. The Y2K-delayed PC industry strength in the second quarter will add to demand for TI's semiconductor products." TI said it is raising its capital-expenditure forecast to $2.5 billion, reflecting the belief that strong demand will continue for its digital signal processors and analog products. Within the semiconductor division, TI expects hard-disk drive revenue to decline sequentially but the loss should be offset by growth in revenue from wireless and broadband. "Toward the next quarter, we expect to accelerate revenue growth overall, and semiconductor will drive this growth," Aylesworth said. Lisa Sanders is an online reporter for CBS MarketWatch.