Summary
Texas Instruments (TXN) reported its second-quarter 2015 results with revenue of $3.23 billion, a slight decrease of 2% year-over-year, primarily driven by weaker demand in communications equipment, partially offset by strong demand in automotive. Despite the modest revenue dip, the company demonstrated operational resilience, with gross margin improving to 58.2% due to manufacturing efficiencies and a favorable product mix. Net income increased to $696 million from $683 million in the prior year's second quarter, leading to a diluted Earnings Per Share (EPS) of $0.65, up from $0.62. The company continued its strong free cash flow generation, amounting to $3.6 billion for the trailing twelve months, representing 27% of revenue, and returned $4.1 billion to shareholders through dividends and share repurchases, underscoring a commitment to capital return. Both core segments, Analog and Embedded Processing, showed resilience, with Analog growing slightly year-over-year and Embedded Processing remaining flat, together contributing 85% of total revenue. The 'Other' segment experienced a revenue decline. The company maintains a strong balance sheet with $3.3 billion in cash and short-term investments, providing significant liquidity.
Financial Highlights
52 data points| Revenue | $3.23B |
| Cost of Revenue | $1.35B |
| Gross Profit | $1.88B |
| R&D Expenses | $320.00M |
| SG&A Expenses | $470.00M |
| Operating Income | $1.01B |
| Net Income | $696.00M |
| EPS (Basic) | $0.66 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 1.04B |
| Shares Outstanding (Diluted) | 1.05B |
Key Highlights
- 1Revenue for Q2 2015 was $3.23 billion, a 2% decrease year-over-year, impacted by lower demand in communications equipment but supported by strength in automotive.
- 2Net income rose to $696 million from $683 million in Q2 2014, with diluted EPS increasing to $0.65 from $0.62.
- 3Gross margin improved to 58.2% from 57.2% in Q2 2014, reflecting operational efficiencies and a favorable product mix.
- 4Free cash flow for the trailing twelve months reached $3.6 billion (27% of revenue), up 13% year-over-year, indicating strong cash generation capability.
- 5The company returned $4.1 billion to shareholders in the past 12 months through dividends and share repurchases.
- 6Analog segment revenue grew 3% year-over-year, while Embedded Processing revenue saw a 2% decline.
- 7Total cash and short-term investments stood at $3.31 billion, providing robust liquidity.