Give a glance at Best Voip Provider's Internet casino game pages. We are
dedicated to making your acquaintance with online casino games as
exciting and rewarding as possible. The gambling websites listed here
not only combine cutting-edge software and the most advanced security
measures available on the net, but also kind customer service. Thousands
of ardent poker games fans have already thanked us for the popular
poker rooms we've listed here. And, if it is exclusive quality and
reliability that your looking for, we advice you to check out our bingo
games section. Whatever your heart desires, we've got it! So, don't
hesitate any longer. You are just one click away from the online gaming
realm where the incredible action will sweep you of your feet!!! |
|
TI Reports 4Q04 and 2004 Financial Results26 January 2005
Texas Instruments Incorporated (NYSE: TXN - News; TI) today reported that revenue for the fourth quarter of 2004 was $3153 million. Revenue decreased 3 percent sequentially due to the seasonal decline in graphing calculators sold into the educational market, and increased 14 percent from the year-ago period due to growth in Semiconductor, the company's largest segment. For the year, TI revenue was $12,580 million, up 28 percent due to 31 percent growth in Semiconductor.
Revenue in the company's Semiconductor segment was about even sequentially as strong growth in products for the wireless market and higher royalty revenue were offset by declines in other areas, primarily standard products reflecting continued inventory adjustments by distributors. Semiconductor revenue increased 14 percent from the year-ago quarter primarily due to strong growth in products sold into the wireless market and increased sales of the company's proprietary Digital Light Processing(TM) (DLP(TM)) products, which are used in projectors and high-definition televisions.
Earnings per share (EPS) were $0.28 in the fourth quarter and included benefits associated with a tax rate change and sequentially higher non- operating income. For the year, EPS was $1.05.
Separately, the company announced that its Board of Directors has authorized a $2 billion stock repurchase, which is in addition to previously announced stock repurchase authorizations.
"TI delivered excellent growth and improved profitability in 2004 despite a second half that was dampened by inventory adjustments," said Rich Templeton, president and chief executive officer. "Most notable was our performance in wireless, DLP and high-performance analog products.
"Revenue from the company's wireless products grew more than $1 billion to a record $3.8 billion for the year. Almost $500 million of our wireless revenue growth came from the emerging market for 3G cell phones, and we expect another strong year in 2005.
"DLP and high-performance analog products solidified their roles as exceptionally strong top- and bottom-line performers with revenue growth of 79 percent and 40 percent, respectively. They also delivered profitability that was above the company average."
Regarding the state of the market and TI's expectations, Templeton said: "We believe distributors made good progress in reducing their inventories in the second half of 2004. Likewise, TI moved aggressively in the fourth quarter to decrease factory loadings, which reduced our inventory by $100 million. Although this put pressure on fourth-quarter margins, we are entering 2005 with desired levels of inventory inside TI, and as a result, we anticipate factory loadings will be higher in the current quarter than they were in the fourth. Although normal seasonality and lower backlog lead us to expect a decline in first-quarter revenue, we are encouraged by the momentum our products have with customers and the overall health of our markets, and we intend to be well-positioned for a resumption in growth."
About 2005, Templeton said: "We intend to make this TI's fourth consecutive year of market share gains built on our core digital signal processing and analog product lines. The strength of our products is evident in the 5 million units of 90-nanometer devices that we have now shipped and in our single-chip wireless cell phone that began sampling in December."
Gross Profit
In the fourth quarter, gross profit of $1334 million, or 42.3 percent of revenue, decreased 10 percent sequentially due to seasonal declines in Educational & Productivity Solutions (E&PS) and underutilization of the company's Semiconductor manufacturing assets as the company reduced inventory. Compared with the year-ago quarter, gross profit increased 12 percent due to higher revenue.
For the year, gross profit of $5626 million, or 44.7 percent of revenue, increased 42 percent primarily due to higher revenue.
Expenses
Research and development (R&D) expense in the fourth quarter of $487 million was about even sequentially as expense reductions largely offset higher profit-sharing accruals. Compared with the year-ago quarter, R&D expense increased 9 percent primarily due to increased product development in Semiconductor, especially for wireless, as well as higher profit-sharing accruals. For the year, R&D expense of $1978 million, or 15.7 percent of revenue, increased 13 percent primarily due to increased product development in Semiconductor, especially for wireless.
Selling, general and administrative (SG&A) expense in the fourth quarter of $363 million increased 4 percent sequentially and 18 percent compared with the year-ago quarter due to higher profit-sharing accruals and increased levels of marketing, especially for Semiconductor products. For the year, SG&A expense of $1441 million, or 11.5 percent of revenue, increased 15 percent for the same reasons.
Operating Profit
In the fourth quarter, operating profit of $484 million, or 15.4 percent of revenue, decreased 26 percent sequentially primarily due to lower gross profit. Compared with the year-ago quarter, operating profit increased 10 percent due to higher gross profit. For the year, operating profit of $2207 million, or 17.5 percent of revenue, increased 129 percent due to higher gross profit.
In 2004, $243 million was accrued for TI's employee profit-sharing plan, including $90 million in cost of revenue, $81 million in SG&A and $72 million in R&D. No profit sharing was accrued in 2003.
Other Income (Expense) Net and Interest Expense (OI&E)
In the fourth quarter, OI&E of $86 million increased $24 million sequentially primarily due to the resolution of an open sales-tax item associated with the company's previously divested defense electronics business and, to a lesser extent, higher interest income generated from higher cash balances and higher interest rates. Compared with the year-ago period, OI&E decreased by $45 million due to lower investment gains that were offset in part by the partial settlement of matters related to grants from the Italian government regarding TI's former memory business operations, higher interest income and the resolution of an open sales-tax item for the divested defense electronics business. In the fourth quarter of 2003, the company sold its remaining shares of Micron Technologies, Inc. (Micron) common stock for a pre- tax investment gain of $97 million.
For the year, OI&E of $235 million decreased by $89 million for the same reason cited in the year-ago quarterly comparison. In 2003, OI&E included pre-tax investment gains of $203 million from the sale of Micron stock.
In the fourth quarter, interest expense of $2 million decreased $2 million sequentially and $6 million from the year-ago quarter. For the year, interest expense of $21 million decreased $18 million due to the company's lower debt level, which primarily resulted from TI's redemption of $400 million of notes that matured in the third quarter of 2004.
Net Income
In the fourth quarter, net income was $490 million, or $0.28 per share. For the year, net income was $1861 million, or $1.05 per share.
The effective tax rate for the fourth quarter was 14 percent, lower than the previously anticipated tax rate of 21 percent due to a cumulative reduction in tax expense that primarily resulted from the resolution of several foreign tax items.
The effective annual tax rate for 2004 was 23 percent, lower than the previously anticipated annual tax rate of 25 percent. As expected, the revised rate reflects the reinstatement of the federal research tax credit that was signed into law on October 4, 2004.
Orders
In the fourth quarter, TI orders of $2944 million decreased 2 percent sequentially primarily due to seasonally lower demand for E&PS graphing calculators. Compared with the year-ago quarter, TI orders decreased 4 percent due to lower demand for Semiconductor products. Semiconductor orders of $2592 million were about even sequentially. Semiconductor orders declined 6 percent from the year-ago quarter primarily due to weak demand for standard products.
For the year, TI orders of $12,447 million increased 20 percent due to Semiconductor. Semiconductor orders of $10,788 million increased 22 percent, reflecting broad-based demand.
Cash
At the end of the fourth quarter, total cash (cash and cash equivalents plus short-term investments and long-term cash investments) was $6358 million, an increase of $741 million from the end of the third quarter and $694 million from the end of 2003. During 2004, the company used $907 million in cash to repurchase $753 million of TI common stock and to pay $154 million in dividends. In 2003, the company repurchased $284 million of TI common stock and paid $147 million in dividends.
Cash flow from operations in the fourth quarter of $1297 million increased 38 percent sequentially and 22 percent from the year-ago period. For the year, cash flow from operations increased to $3138 million, up 46 percent.
Capital Spending and Depreciation
Capital expenditures in the fourth quarter of $211 million declined by $119 million sequentially and $61 million from the year-ago quarter. For the year, capital expenditures of $1298 million increased by $498 million. TI's capital expenditures in 2004 were primarily for equipment used in assembly and test operations, and for 90-nanometer (nm) wafer fabrication.
Depreciation in the fourth quarter of $390 million increased by $12 million sequentially and $20 million from the year-ago period. For the year, depreciation was $1479 million, an increase of $50 million.
Accounts Receivable and Inventory
Accounts receivable at the end of the fourth quarter of $1696 million declined $269 million from the end of the prior quarter primarily due to lower shipments in Semiconductor in the last month of the fourth quarter compared with the last month of the third quarter, as well as seasonally lower E&PS shipments. Accounts receivable increased $245 million from the end of 2003 due to higher revenue. Days sales outstanding were 48 at the end of the fourth quarter, compared with 54 at the end of the prior quarter and 47 at the end of 2003.
Inventory of $1256 million at the end of the fourth quarter decreased $100 million sequentially due to lower factory loadings. For the year, inventory increased by $272 million compared with the end of 2003 as the company built inventory to support higher shipment levels and to increase the company's performance in customer service metrics. Days of inventory at the end of the fourth quarter were 62, down from 69 days at the end of the prior quarter and up from 56 days at the end of 2003.
Debt
At the end of the fourth quarter, TI's debt-to-total capital ratio was 0.03, unchanged from the end of the prior quarter and down from 0.07 at the end of 2003 due to retirement of debt.
Outlook
TI intends to provide a mid-quarter update to its financial outlook on March 7, 2005, by issuing a press release and holding a conference call. Both will be available on the company's web site.
For the first quarter of 2005, TI expects revenue to be in the following
ranges:
-- Total TI, $2900 million to $3140 million;
-- Semiconductor, $2550 million to $2750 million;
-- Sensors & Controls, $280 million to $300 million; and
-- E&PS, $70 million to $90 million.
TI expects earnings per share to be in the range of $0.22 to $0.26.
For 2005, TI expects: R&D to be about $2.1 billion, capital expenditures to be about $1.3 billion and depreciation to be about $1.4 billion. The effective tax rate for the year is expected to be about 24 percent. This outlook does not include any impact related to the expensing of stock options under the Financial Accounting Standards Board's Statement 123®, which is effective for quarters beginning after June 15, 2005. In addition, this outlook does not reflect the impact of any potential repatriation of cash under the American Jobs Creation Act.
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statement of Operations
(In millions, except per-share amounts)
For Three Months Ended For Years Ended
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2004 2004 2003 2004 2003
Net revenue $ 3153 $ 3250 $ 2770 $12580 $ 9834
Operating costs and
expenses:
Cost of revenue 1819 1761 1576 6954 5872
Gross profit 1334 1489 1194 5626 3962
Gross profit
% of revenue 42.3% 45.8% 43.1% 44.7% 40.3%
Research and
development (R&D) 487 483 448 1978 1748
R&D % of revenue 15.5% 14.9% 16.2% 15.7% 17.8%
Selling, general
and administrative
(SG&A) 363 349 308 1441 1249
SG&A % of
revenue 11.5% 10.7% 11.1% 11.5% 12.7%
Total 2669 2593 2332 10373 8869
Profit from
operations 484 657 438 2207 965
Operating income
% of revenue 15.4% 20.2% 15.8% 17.5% 9.8%
Other income
(expense) net 86 62 131 235 324
Interest on loans 2 4 8 21 39
Income before
income taxes 568 715 561 2421 1250
Provision (benefit)
for income taxes 78 152 49 560 52
Net income $ 490 $ 563 $ 512 $ 1861 $ 1198
Basic earnings per
common share $ .28 $ .33 $ .30 $ 1.08 $ .69
Diluted earnings
per common share $ .28 $ .32 $ .29 $ 1.05 $ .68
Average shares
outstanding, basic 1725 1730 1733 1730 1731
Average shares
outstanding,
diluted 1759 1759 1780 1768 1766
Cash dividends
declared per share
of common stock $ .025 $ .021 $ .021 $ .089 $ .085
Included in the
results above were
the following items:
For Three Months Ended For Years Ended
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2004 2004 2003 2004 2003
Restructuring costs
Semiconductor --- 1 7 4 78
Sensors & Controls 3 4 6 13 40
Total 3 5 13 17 118
Purchased in-process
R&D --- --- --- --- 23
Acquisition-related
amortization 16 16 20 70 99
Investment gains --- --- (97) --- (203)
Loss on redemption
of debt --- --- --- --- 10
Reflected in
Cost of revenue 12 14 20 52 144
R&D 4 4 6 18 55
SG&A 3 3 7 17 41
OI&E --- --- (97) --- (193)
The restructuring charges were for actions initiated in the second
quarter of 2003 and were primarily for severance and benefit costs. The
charge for purchased in-process R&D costs was a result of the Radia
Communications, Inc. acquisition. Investment gains were the result of the
sale of shares of Micron Technology, Inc. (Micron) common stock. The
loss on redemption for the first quarter of 2003 resulted from the
redemption of $250 million in convertible notes.
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheet
(In millions of dollars)
Dec. 31 Sept. 30 Dec. 31
2004 2004 2003
Assets
Current assets:
Cash and cash equivalents $ 2668 $ 1674 $ 1818
Short-term investments 2306 2312 2511
Accounts receivable, net of
allowances for customer
adjustments and doubtful
accounts of $41 million at
December 31, 2004, $45 million
at September 30, 2004, and
$47 million at December 31, 2003 1696 1965 1451
Inventories:
Raw materials 117 122 106
Work in process 756 885 624
Finished goods 383 349 254
Inventories 1256 1356 984
Deferred income taxes 554 451 449
Prepaid expenses and other
current assets 326 541 496
Total current assets 8806 8299 7709
Property, plant and equipment
at cost 9573 9830 9549
Less accumulated depreciation (5655) (5711) (5417)
Property, plant and equipment
(net) 3918 4119 4132
Long-term cash investments 1384 1631 1335
Equity and debt investments 264 248 265
Goodwill 701 693 693
Acquisition-related intangibles 111 125 169
Deferred income taxes 449 476 626
Other assets 666 546 581
Total assets $16299 $16137 $15510
Liabilities and Stockholders' Equity
Current liabilities:
Loans payable and current
portion long-term debt $ 11 $ 10 $ 437
Accounts payable and accrued
expenses 1444 1550 1496
Income taxes payable 203 124 250
Profit sharing contributions
and accrued retirement 267 208 17
Total current liabilities 1925 1892 2200
Long-term debt 368 373 395
Accrued retirement costs 589 591 628
Deferred income taxes 40 63 59
Deferred credits and other
liabilities 314 322 364
Stockholders' equity:
Preferred stock, $25 par value.
Authorized -- 10,000,000 shares.
Participating cumulative preferred.
None issued. --- --- ---
Common stock, $1 par value.
Authorized -- 2,400,000,000 shares.
Shares issued: December 31, 2004 --
1,738,156,615; September 30, 2004 --
1,738,141,785; December 31, 2003 --
1,737,739,654 1738 1738 1738
Paid-in capital 750 789 901
Retained earnings 11242 10795 9535
Less treasury common stock at cost:
Shares: December 31, 2004 --
20,041,497; September 30, 2004 --
10,216,953; December 31, 2003 --
5,401,665 (480) (248) (135)
Accumulated other comprehensive
income (loss) (183) (170) (159)
Deferred compensation (4) (8) (16)
Total stockholders' equity 13063 12896 11864
Total liabilities and stockholders'
equity $16299 $16137 $15510
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Statement of Cash Flows
(In millions of dollars)
For Three Months Ended For Years Ended
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2004 2004 2003 2004 2003
Cash flows from operating
activities:
Net income $ 490 $ 563 $ 512 $ 1861 $ 1198
Depreciation 390 378 370 1479 1429
Amortization of
acquisition-related
costs 16 16 20 70 99
Purchased in-process
research and
development --- --- --- --- 23
Write-downs of equity
investments 2 5 8 13 42
Gains on sale of equity
and debt investments --- (1) (99) (12) (213)
Deferred income taxes (41) 41 174 68 75
(Increase) decrease in
working capital
(excluding cash and
cash equivalents,
short-term investments,
deferred income taxes,
and loans payable and
current portion
long-term debt):
Accounts receivable 280 (37) 85 (238) (197)
Inventories 100 (71) 11 (272) (194)
Prepaid expenses and
other current assets 225 (50) (93) 134 (183)
Accounts payable and
accrued expenses (116) (53) 48 (71) 264
Income taxes payable 63 88 112 59 118
Accrued retirement
and profit sharing
contributions 44 26 15 235 11
Increase (decrease) in
noncurrent accrued
retirement costs (168) (11) 6 (248) (132)
Other 12 48 (102) 60 (189)
Net cash provided by
operating activities 1297 942 1067 3138 2151
Cash flows from investing
activities:
Additions to property,
plant and equipment (211) (330) (272) (1298) (800)
Purchases of short-term
investments (485) (411) (640) (2081) (2203)
Sales and maturities of
short-term investments 828 877 741 3642 3288
Purchases of long-term
cash investments (167) (500) (445) (1593) (2199)
Sales of long-term cash
investments 66 6 90 167 444
Purchases of equity
investments (6) (2) (3) (22) (22)
Sales of equity and debt
investments 1 1 414 32 778
Acquisition of business,
net of cash acquired --- --- --- --- (128)
Net cash provided by
(used in) investing
activities 26 (359) (115) (1153) (842)
Cash flows from financing
activities:
Payments on loans
payable --- (5) --- (6) (8)
Payments on long-term
debt --- (400) (3) (429) (418)
Dividends paid on
common stock (44) (36) (36) (154) (147)
Sales and other common
stock transactions 75 5 77 192 157
Common stock repurchase
program (370) (98) (115) (753) (284)
Decrease in current
assets for restricted
cash --- --- --- --- 261
Net cash used in
financing activities (339) (534) (77) (1150) (439)
Effect of exchange rate
changes on cash 10 2 --- 15 (1)
Net increase in cash
and cash equivalents 994 51 875 850 869
Cash and cash equivalents
at beginning of period 1674 1623 943 1818 949
Cash and cash
equivalents at end
of period $ 2668 $ 1674 $ 1818 $ 2668 $ 1818
Certain purchases of short-term investments and purchases of long-term
cash investments amounts in the prior period statement of cash flows have
been reclassified to conform to the December 31, 2004, presentation.
Business Segment Net Revenue
(In millions of dollars)
For Three Months Ended For Years Ended
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2004 2004 2003 2004 2003
Semiconductor
Trade $ 2797 $ 2785 $ 2444 $10938 $ 8345
Intersegment 1 1 3 3 15
2798 2786 2447 10941 8360
Sensors & Controls
Trade 276 275 251 1124 1004
Intersegment 1 1 1 3 5
277 276 252 1127 1009
Educational & Productivity
Solutions
Trade 80 190 76 518 485
Corporate activities (2) (2) (5) (6) (20)
Total net revenue $ 3153 $ 3250 $ 2770 $12580 $ 9834
Business Segment Profit
(In millions of dollars)
For Three Months Ended For Years Ended
Dec. 31 Sept. 30 Dec. 31 Dec. 31 Dec. 31
2004 2004 2003 2004 2003
Semiconductor $ 478 $ 582 $ 433 $ 2050 $ 969
Sensors & Controls 62 66 64 281 251
Educational & Productivity
Solutions 16 83 11 176 157
Corporate activities (53) (52) (38) (213) (172)
Charges/gains and
acquisition-related
amortization (19) (21) 65 (87) (47)
Interest on loans/other
income (expense) net,
excluding a fourth-quarter
2003 gain of $97, a
third-quarter 2003 gain of
$106, a first-quarter 2003
charge of $10, included
above in Charges/gains
and acquisition-related
amortization 84 57 26 214 92
Income before income taxes $ 568 $ 715 $ 561 $ 2421 $ 1250
Semiconductor
-- Semiconductor revenue in the fourth quarter of $2798 million was
about even sequentially as strong growth in products for the wireless
market was offset by declines in other areas, primarily standard
products reflecting continued inventory adjustments by distributors.
Compared with the year-ago quarter, revenue increased 14 percent
primarily due to strong growth in the company's wireless and DLP
product revenue. Semiconductor revenue in the fourth quarter
included a $35 million catch-up for royalties that had been underpaid
in years prior to 2004. For the year, Semiconductor revenue of
$10,941 million increased 31 percent and was led by 40 percent growth
in wireless revenue, 40 percent growth in high-performance analog
revenue and 79 percent growth in DLP product revenue.
-- Gross profit in the fourth quarter was $1206 million, or 43.1 percent
of revenue, a decrease of $81 million from the prior quarter due to
underutilization of the company's Semiconductor manufacturing assets,
particularly for production of analog products, as the company
reduced inventory. Compared with the year-ago quarter, gross profit
increased $123 million due to higher revenue. For the year, gross
profit of $4967 million, or 45.4 percent of revenue, increased $1495
million primarily due to higher revenue.
-- Operating profit in the fourth quarter was $478 million, or
17.1 percent of revenue, down $104 million sequentially primarily due
to lower gross profit. Compared with the year-ago quarter, operating
profit increased $45 million due to higher gross profit. For the
year, operating profit was $2050 million, or 18.7 percent of revenue,
up $1081 million due to higher gross profit.
-- Analog revenue in the fourth quarter decreased 6 percent sequentially
primarily due to lower shipments that resulted from weaker demand for
standard products, including high-performance analog and commodity
linear products, which are sold predominantly through distribution
channels. Analog revenue increased 3 percent from the year-ago
period as increased shipments of high-performance analog and wireless
products more than offset declines in commodity linear products.
High-performance analog revenue declined 11 percent sequentially
primarily reflecting inventory reduction in the distribution channel,
and grew 6 percent from the year-ago quarter. For the year, analog
revenue increased 28 percent primarily due to growth in demand for
high-performance analog products and wireless products. High-
performance analog revenue for the year grew 40 percent. In 2004,
about 40 percent of total Semiconductor revenue came from analog.
-- DSP revenue in the fourth quarter increased 9 percent sequentially
and 24 percent compared with the year-ago quarter due to higher
shipments that resulted from stronger demand for wireless products.
For the year, DSP revenue increased 35 percent primarily due to
demand for wireless products, as well as catalog and broadband
products. In 2004, about 35 percent of total Semiconductor revenue
came from DSP.
-- TI's remaining Semiconductor revenue in the fourth quarter declined
by 2 percent sequentially due to declines in commodity standard logic
and DLP product revenue, and increased 18 percent from the year-ago
quarter primarily due to strong demand for DLP products. For the
year, remaining Semiconductor revenue increased 30 percent primarily
due to demand for DLP products.
-- Results for TI Semiconductor products sold into key end equipments
were as follows:
-- Wireless revenue in the fourth quarter increased 12 percent
sequentially and 28 percent from the year-ago quarter primarily
due to higher shipments of products sold into 3G cell phones.
For the year, wireless revenue grew 40 percent primarily due to
more than 40 percent growth in 2.5G products and almost 300
percent growth in 3G products. In 2004, about 35 percent of
total Semiconductor revenue came from the wireless market.
-- Broadband communications revenue, which includes DSL and cable
modems, voice over Internet protocol (VoIP) and wireless LAN
(WLAN), grew 7 percent sequentially primarily due to higher
demand for DSL products. Compared with the year-ago period,
broadband revenue increased 26 percent due to a combination of
growth in cable modem products, VoIP products and DSL products.
For the year, broadband communications revenue grew 46 percent
due to growth in all product areas. In 2004, about 5 percent of
total Semiconductor revenue came from the broadband
communications market.
-- Semiconductor orders in the fourth quarter of $2592 million were
about even sequentially and declined 6 percent compared with the
year-ago quarter. For the year, orders increased 22 percent to
$10,788 million due to broad-based demand.
2004 Semiconductor Highlights
In wireless:
-- TI began sampling in December a single-chip cell-phone solution
targeted at the mass market for voice-centric cell phones. Utilizing
TI's innovative Digital RF technology combined with its 90-nm CMOS
manufacturing process, the new chip integrates the GPRS digital
baseband, digital RF, SRAM, logic, power management and analog
functions. Nokia plans to use the chip initially to address entry-
level cell-phone models in high-growth markets such as China and
India.
-- TI and NTT DoCoMo, Inc. announced plans to jointly develop an
integrated UMTS digital baseband and applications processor for use
in 3G cell-phone markets worldwide. The product will be based on
TI's next-generation OMAP(TM) 2 application processor.
-- TI began sampling OMAP 2 processors for 2.5G and 3G cell phones.
This next-generation OMAP product family will enable cell phones with
features such as digital video camcorders, Dolby Digital(TM)-quality
sound, interactive 3D gaming, DVD-quality video, 4+ megapixel
cameras, television reception and more.
In DLP technology:
-- Thomson began shipping two new super-thin HDTV models based on DLP
technology. Just 6.85 inches deep, the new RCA Scenium Profiles
HDTVs come in 50-inch and 61-inch screens.
In analog:
-- TI introduced Impedance Track technology for "gas-gauge" chipsets, a
new technology that calculates the remaining power in lithium-based
battery packs with up to 99 percent accuracy throughout a battery's
total life cycle. A digital still camera, for example, could use
this technology to display the number of pictures that can be taken
with the remaining battery power.
In DSP:
-- TI announced volume production of 1 GHz DSPs, the world's first DSPs
manufactured on a 90-nm process technology. Already shipping to more
than 70 customers, these chips enable developers to pursue innovative
applications such as self-navigating vehicles, complex vision systems
and portable medical imaging equipment.
In manufacturing:
-- TI broke ground on a new semiconductor manufacturing complex in
Texas. The new facility will build some of the world's most advanced
semiconductor designs on 300-millimeter wafers with TI's next-
generation 65-nm process technology. TI plans to construct the
building and infrastructure ahead of market demand, followed by
stages of equipment installation as demand increases.
Sensors & Controls
-- Sensors & Controls revenue in the fourth quarter of $277 million was
about even sequentially. Compared with the year-ago quarter, revenue
increased 10 percent due to higher shipments across a broad range of
products sold into the automotive and industrial markets. For the
year, revenue was a record $1127 million, up 12 percent due to broad-
based demand.
-- Gross profit in the fourth quarter was $99 million, or 35.7 percent
of revenue, a decrease of $3 million sequentially primarily due to
start-up expenses for new products. Compared with the year-ago
quarter, gross profit increased by $4 million due to higher revenue.
For the year, gross profit was $423 million, or 37.5 percent of
revenue, an increase of $50 million due to higher revenue.
-- Operating profit in the fourth quarter was $62 million, or
22.5 percent of revenue, a decrease of $4 million sequentially due to
lower gross profit and a decrease of $2 million from the year-ago
quarter due to increased R&D investments. For the year, operating
profit was a record $281 million, or 24.9 percent of revenue, an
increase of $30 million due to higher gross profit.
Educational & Productivity Solutions (E&PS)
-- E&PS revenue in the fourth quarter was $80 million, down 58 percent
sequentially due to the seasonal decline in product demand, primarily
for graphing calculators, associated with the end of the back-to-
school sales season. Compared with the year-ago quarter, revenue
increased 5 percent due to higher demand for scientific and business
calculators. For the year, revenue was a record $518 million, up
7 percent primarily due to higher demand for new graphing calculator
products.
-- Gross profit in the fourth quarter was $42 million, or 52.8 percent
of revenue, a decrease of $72 million sequentially due to seasonally
lower revenue. Compared with the year-ago quarter, gross profit
increased $5 million primarily due to higher revenue, as well as
product cost reductions. For the year, gross profit of $292 million,
or 56.4 percent of revenue, increased $25 million primarily due to
higher revenue.
-- Operating profit in the fourth quarter was $16 million, or
20.5 percent of revenue, a decrease of $67 million sequentially due
to seasonally lower gross profit. Compared with the year-ago
quarter, operating profit increased $5 million due to higher gross
profit. For the year, operating profit was a record $176 million, or
34.0 percent of revenue, an increase of $19 million due to higher
gross profit.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements in this release that describe the company's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of the company or its management:
-- Market demand for semiconductors, particularly for analog chips and
digital signal processors in key markets, such as telecommunications
and computers;
-- TI's ability to maintain or improve profit margins, including its
ability to utilize its manufacturing facilities at sufficient levels
to cover its fixed operating costs, in an intensely competitive and
cyclical industry;
-- TI's ability to develop, manufacture and market innovative products
in a rapidly changing technological environment;
-- TI's ability to compete in products and prices in an intensely
competitive industry;
-- Losses or curtailments of purchases from key customers;
-- The timing and amount of distributor and other customer inventory
adjustments;
-- The financial impact of inadequate or excess TI inventories to meet
demand that differs from projections;
-- TI's ability to maintain and enforce a strong intellectual property
portfolio and obtain needed licenses from third parties;
-- Consolidation of TI's patent licensees and market conditions reducing
royalty payments to TI;
-- Economic, social and political conditions in the countries in which
TI, its customers or its suppliers operate, including security risks,
health conditions, possible disruptions in transportation networks
and fluctuations in foreign currency exchange rates;
-- Natural events such as severe weather and earthquakes in the
locations in which TI, its customers or its suppliers operate;
-- Availability and cost of raw materials and critical manufacturing
equipment;
-- Changes in the tax rate applicable to TI as a result of changes in
tax law, the jurisdictions in which profits are determined to be
earned and taxed, the outcome of tax audits and the ability to
realize deferred tax assets;
-- TI's ability to recruit and retain skilled personnel; and
-- Timely implementation of new manufacturing technologies, installation
of manufacturing equipment, and the ability to obtain needed third-
party foundry and assembly/test subcontract services.
For a more detailed discussion of these factors, see the text under the heading "Cautionary Statements Regarding Future Results of Operations" in Item 1 of the company's most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of publication, and the company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company's businesses include Sensors & Controls and Educational & Productivity Solutions. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.
Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at http://www.ti.com .
TI Trademarks:
OMAP
Digital Light Processing
DLP
Other trademarks are the property of their respective owners.
--------------------------------------------------------------------------------
Source: Texas Instruments Incorporated
Source: PR Newswire via Yahoo
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Voip Articles
|
|
|
