Summary
Texas Instruments (TI) reported its financial results for the second quarter and first half of 2011. For the second quarter, revenue was $3.46 billion, slightly down from $3.49 billion in the prior year quarter, while net income was $672 million, down from $769 million year-over-year. Diluted EPS for the quarter was $0.56, a decrease from $0.62 in the same period last year. The company experienced a significant increase in cash and cash equivalents, largely due to a $3.5 billion debt issuance to fund the pending acquisition of National Semiconductor. The first half of 2011 saw revenue of $6.85 billion, an increase from $6.70 billion in the prior year. Net income for the first half was $1.34 billion, down from $1.43 billion year-over-year, with diluted EPS at $1.11 compared to $1.14. The company highlighted growth in its core Analog and Embedded Processing segments, while facing challenges in the Wireless segment due to reduced demand from a key customer and the ongoing divestiture of baseband products. The impact of the Japan earthquake on manufacturing operations was also noted, with associated costs and ongoing insurance claim discussions.
Financial Highlights
49 data points| Revenue | $3.46B |
| Cost of Revenue | $1.71B |
| Gross Profit | $1.75B |
| R&D Expenses | $424.00M |
| SG&A Expenses | $411.00M |
| Operating Income | $905.00M |
| Net Income | $661.00M |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 1.16B |
| Shares Outstanding (Diluted) | 1.18B |
Key Highlights
- 1Revenue for Q2 2011 was $3.46 billion, largely flat compared to $3.49 billion in Q2 2010. For the first six months of 2011, revenue was $6.85 billion, up from $6.70 billion in the prior year.
- 2Net income for Q2 2011 was $672 million, a decrease from $769 million in Q2 2010. Net income for the first six months of 2011 was $1.34 billion, down from $1.43 billion in the prior year.
- 3Diluted EPS for Q2 2011 was $0.56, down from $0.62 in Q2 2010. For the first six months of 2011, diluted EPS was $1.11, down from $1.14 in the prior year.
- 4The company issued $3.5 billion in long-term debt in May 2011 to fund the acquisition of National Semiconductor, significantly increasing its cash and cash equivalents to $4.5 billion.
- 5The Analog and Embedded Processing segments showed revenue growth, with Analog up 5% year-over-year in Q2 and Embedded Processing up 16% year-over-year in Q2.
- 6The Wireless segment experienced a significant revenue decline (-23% YoY in Q2) primarily due to reduced shipments of baseband products to a major customer.
- 7The company incurred approximately $50 million in costs related to the Japan earthquake in Q2 2011, affecting the 'Other' segment's profitability.