Texas Instruments Inc. (TXN) filed Quarterly Report for the period ended 2009-09-30.
Texas Instruments Inc. is a global semiconductor company and one of the world's leading designers and suppliers of digital signal processors and analog integrated circuits the engines driving the digitization of electronics. These two types of semiconductor products work together in digital electronic devices such as digital cellular phones. Other semiconductor products include standard logic application- specific integrated circuits reduced instruction-set computing microprocessors microcontrollers and digital imaging devices. Texas Instruments Inc. has a market cap of $29.58 billion; its shares were traded at around $23.45 with a P/E ratio of 24.7 and P/S ratio of 2.4. The dividend yield of Texas Instruments Inc. stocks is 1.9%. Texas Instruments Inc. had an annual average earning growth of 42.8% over the past 5 years.
Highlight of Business Operations:
Our third-quarter revenue was $2.88 billion, net income was $538 million and earnings per share (EPS) were $0.42.
Gross profit for the third quarter of 2009 was $1.48 billion, or 51.4 percent of revenue, a decrease of $162 million, or 10 percent, from the year-ago quarter due to lower revenue. This decrease was partially offset by the favorable impact of lower manufacturing costs. Gross profit increased $357 million, or 32 percent, from the prior quarter primarily due to higher revenue.
Operating expenses for the third quarter of 2009 were $368 million for R&D and $340 million for SG&A. R&D expense decreased $139 million, or 27 percent, from a year ago primarily due to the combination of the effects of our previously-announced employment reductions and, to a lesser extent, our cost-control efforts. R&D expense was about even compared with the prior quarter. SG&A expense decreased $50 million, or 13 percent, from the year-ago quarter primarily due to the effects of employment reductions. SG&A increased $13 million, or 4 percent, from the prior quarter primarily due to higher compensation-related costs resulting from our improved profitability.
For the third quarter of 2009, we had operating profit of $763 million, an increase of $17 million, or 2 percent, compared with the year-ago quarter, and an increase of $420 million, or 122 percent, compared with the previous quarter. The increase from a year ago was due to lower operating expenses. The increase from the prior quarter was primarily due to higher revenue and the associated higher gross profit. Operating profit increased from the prior quarter in all segments.
The tax provision for the third quarter of 2009 was $227 million, compared with $193 million in the year-ago quarter. The increase was due to a change in discrete tax items, partially offset by the federal research tax credit, which was not in effect in the year-ago quarter. We had discrete tax charges of $14 million in the third quarter of 2009, compared with $34 million of discrete tax benefits in the year-ago quarter. These items were primarily related to adjustments identified through the completion of tax returns for prior years. For the second quarter of 2009 we had a tax provision of $96 million. The sequential increase in the tax provision for the third quarter of 2009 was due to higher income before income taxes.
In the third quarter of 2009, we had net income of $538 million, or earnings per share of $0.42, compared with net income of $563 million, or earnings per share of $0.43, for the year-ago quarter, and $260 million, or earnings per share of $0.20, for the prior quarter.
TXN is in the portfolios of Richard Snow of Snow Capital Management, L.P., Bill Nygren of Oak Mark Fund, Charles Brandes of Brandes Investment, Chris Davis of Davis Selected Advisers, Bill Miller of Legg Mason Value Trust, PRIMECAP Management, Arnold Van Den Berg of Century Management, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Mark Hillman of Hillman Capital Management, Kenneth Fisher of Fisher Asset Management, LLC, Dodge & Cox, NWQ Managers of NWQ Investment Management Co.
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