10-Q/APeriod: Q3 FY2001

TEXAS INSTRUMENTS INC Quarterly Report (Amendment) for Q3 Ended Sep 30, 2001

Filed November 1, 2001For Securities:TXN

Summary

This 10-Q/A filing from Texas Instruments Incorporated (TXN) for the period ending September 30, 2001, is an amendment to a previously filed report, specifically correcting a line item related to prepaid expenses and other current assets for the nine-month period. While the filing itself is an amendment, it provides a snapshot of the company's cash flow activities. For the nine months ended September 30, 2001, TXN experienced a net loss before cumulative effect of accounting changes of $85 million, a significant shift from the $2.422 billion profit reported in the same period of 2000. This downturn is reflected in the operating cash flows, which decreased to $1.039 billion from $1.583 billion year-over-year. The company continues to invest heavily in property, plant, and equipment, with additions of $1.554 billion, though this is a decrease from the prior year's $1.789 billion. Despite the challenging operating environment indicated by the loss, TXN's investing activities show strategic management of its investment portfolio, with net cash used in investing activities at $1.007 billion compared to $1.320 billion in the prior year. The company also actively managed its financing activities, including significant share repurchases amounting to $310 million in the nine months ended September 30, 2001. However, the company's cash position has declined, with cash and cash equivalents falling to $387 million from $938 million a year prior, reflecting the net decrease in cash of $358 million during the period.

Key Highlights

  • 1Texas Instruments Incorporated (TXN) filed an amendment (10-Q/A) to correct a financial reporting error concerning prepaid expenses for the nine months ended September 30, 2001.
  • 2The company reported a net loss before accounting changes of $85 million for the nine months ended September 30, 2001, a stark contrast to a $2.422 billion profit in the same period of 2000.
  • 3Net cash provided by operating activities decreased significantly to $1.039 billion for the nine months ended September 30, 2001, down from $1.583 billion in the prior year.
  • 4Capital expenditures on property, plant, and equipment remain substantial at $1.554 billion for the nine months ended September 30, 2001, though lower than the $1.789 billion in the prior year.
  • 5TXN actively managed its investment portfolio, with net cash used in investing activities at $1.007 billion for the nine months ended September 30, 2001.
  • 6The company engaged in substantial share repurchases, using $310 million for common stock repurchases during the nine months ended September 30, 2001.
  • 7Total cash and cash equivalents declined to $387 million as of September 30, 2001, from $938 million at the same time in the previous year, indicating a cash burn of $358 million during the period.

Frequently Asked Questions

The primary reason for filing this amended report was to correct an error in the cash flow statement previously filed on October 24, 2001. Specifically, the line item for 'prepaid expenses and other current assets' for the nine months ended September 30, 2001, was restated.

Texas Instruments experienced a significant decline in profitability. For the nine months ended September 30, 2001, the company reported a net loss of $85 million (before cumulative effect of an accounting change), a sharp reversal from the $2.422 billion profit reported for the same period in 2000.

As of September 30, 2001, Texas Instruments had $387 million in cash and cash equivalents. This represents a decrease from $938 million reported at the same time in the prior year, indicating a net decrease in cash of $358 million during the nine-month period.

Texas Instruments continues to make significant investments in property, plant, and equipment, totaling $1.554 billion for the nine months ended September 30, 2001. While this is a decrease from the prior year, it demonstrates ongoing capital expenditure. The company also actively managed its investment portfolio, with net cash used in investing activities at $1.007 billion. Furthermore, TXN actively repurchased its own stock, spending $310 million on common stock repurchase programs during the period.