Summary
Texas Instruments Inc. (TXN) reported its first quarter 2011 results, demonstrating revenue growth driven by its core Analog and Embedded Processing segments, along with growth in connectivity products within the Wireless segment. Despite a modest increase in overall revenue to $3.39 billion, up 6% year-over-year, the company faced headwinds including lower demand from a key customer for Wireless baseband chips and disruptions from the March 2011 earthquake in Japan, which impacted revenue and incurred additional costs. These factors, along with increased operating expenses, led to a slight decrease in operating profit year-over-year, though diluted Earnings Per Share (EPS) improved to $0.55 from $0.52 in the prior year's quarter. The company also announced a significant strategic move with the agreement to acquire National Semiconductor for approximately $6.5 billion, expected to close in 2011. This acquisition is intended to bolster TI's Analog business, aligning with its strategy to focus on growth in Analog and Embedded Processing. Management highlighted strong underlying new orders and expressed optimism for a good second half of 2011, contingent on continued consumer and enterprise demand, while acknowledging potential ongoing pressures from the Japan situation.
Financial Highlights
47 data points| Revenue | $3.39B |
| Cost of Revenue | $1.66B |
| Gross Profit | $1.73B |
| R&D Expenses | $422.00M |
| SG&A Expenses | $396.00M |
| Operating Income | $908.00M |
| Net Income | $666.00M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 1.17B |
| Shares Outstanding (Diluted) | 1.19B |
Key Highlights
- 1Revenue increased 6% year-over-year to $3.39 billion, driven by strong performance in Analog and Embedded Processing segments.
- 2Diluted Earnings Per Share (EPS) grew to $0.55 from $0.52 in the prior year's quarter, indicating improved profitability on a per-share basis.
- 3Texas Instruments announced an agreement to acquire National Semiconductor for approximately $6.5 billion, a strategic move to strengthen its Analog business.
- 4The company reported $30 million in costs and $20 million in lost revenue due to the March 2011 earthquake in Japan, impacting Q1 results.
- 5Wireless segment revenue declined due to lower demand for baseband chips from a key customer.
- 6The company repurchased $771 million of its common stock and paid $153 million in dividends, demonstrating a commitment to returning capital to shareholders.
- 7Total cash and short-term investments stood at $2.86 billion at quarter-end, providing financial flexibility.