8-KOther Events

TEXAS INSTRUMENTS INC 8-K Report (May 14, 2002)

Filed May 14, 2002For Securities:TXN

Summary

Texas Instruments Incorporated (TXN) filed an 8-K on May 13, 2002, re-confirming its financial outlook for the second quarter of 2002. The company anticipates revenue of approximately $2.0 billion, representing about 10% sequential growth. This growth is expected to be driven by improvements in customer end-equipment markets, fueled by a stronger overall economy leading to increased corporate spending and technology adoption. The company projects a GAAP operating margin of 5% and a pro forma operating margin of 6% for Q2 2002, with diluted earnings per share (EPS) of $0.05 on a GAAP basis and $0.06 on a pro forma basis. The outlook includes anticipated growth across its key segments: Semiconductors (8%), Sensors & Controls (5%), and Education & Productivity Solutions (E&PS) (50%), with the latter seeing a significant boost from back-to-school calculator sales.

Key Highlights

  • 1Texas Instruments (TI) re-affirmed its Q2 2002 revenue outlook of approximately $2.0 billion, indicating 10% sequential growth.
  • 2The company expects a strong economic recovery and increased corporate spending to drive demand for its products.
  • 3Q2 2002 guidance includes a GAAP operating margin of 5% and a pro forma operating margin of 6%.
  • 4Projected Q2 2002 GAAP EPS is $0.05, with pro forma EPS at $0.06.
  • 5Semiconductor segment expected to grow around 8%, Sensors & Controls around 5%.
  • 6Education & Productivity Solutions (E&PS) segment projected for substantial 50% growth in Q2, driven by back-to-school calculator demand.
  • 7The filing includes forward-looking statements subject to risks, such as market demand, technological changes, competition, and economic conditions.

Frequently Asked Questions

The primary purpose of this 8-K filing is to re-confirm Texas Instruments' financial outlook for the second quarter of 2002, as required by Regulation FD. This ensures that previously disclosed outlook information is reaffirmed to the public.

Texas Instruments expects to achieve approximately $2.0 billion in revenue for the second quarter of 2002, which represents an anticipated 10% sequential growth.

The expected growth is driven by an anticipated improvement in customers' end-equipment markets, which is expected to be fueled by a stronger overall economy leading to increased global corporate spending and adoption of new technology.

The forward-looking statements are subject to various risks and uncertainties, including market demand for semiconductors, TI's ability to innovate and compete, intellectual property protection, successful integration of acquisitions, global economic and political conditions, customer inventory adjustments, and the ability to retain skilled personnel.