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Exhibit
99
TI
reports financial results for 4Q09 and 2009
Conference
call on TI web site at 4:30 p.m. Central time today
www.ti.com/ir
DALLAS
(Jan. 25, 2010) – Texas Instruments Incorporated (TI) (NYSE: TXN) today
announced fourth-quarter revenue of $3.00 billion, net income of $655 million
and earnings per share (EPS) of $0.52.
“TI’s
growth and improving performance reflect our focus on
Analog and Embedded Processing. These are large, diverse businesses
that give us access to the world’s fastest-growing electronics markets,”
said Rich Templeton, TI chairman, president and chief executive
officer.
“In the
fourth quarter, demand was strong across end markets without the usual holiday
slowdown. Throughout, we believe customer and channel inventories
have been lean. With demand continuing to be solid and inventories
well below historical levels, our outlook for the first quarter reflects the
likelihood of sequential growth instead of the typical seasonal
decline.
“We
continue to make investments to support customers and drive growth, including
the ramp-up of the industry's first 300-millimeter analog factory in Richardson,
Texas,” Templeton concluded.
4Q09 financial
summary
Amounts
are in millions of dollars, except per-share amounts.
| 4Q09 | 4Q08 |
vs. 4Q08
|
3Q09 |
vs. 3Q09
|
||||||||||||||||
|
Revenue:
|
$ | 3,005 | $ | 2,491 | 21 | % | $ | 2,880 | 4 | % | ||||||||||
|
Operating
profit:
|
$ | 875 | $ | 51 | 1,616 | % | $ | 763 | 15 | % | ||||||||||
|
Net
income:
|
$ | 655 | $ | 107 | 512 | % | $ | 538 | 22 | % | ||||||||||
|
Earnings
per share:
|
$ | 0.52 | $ | 0.08 | 550 | % | $ | 0.42 | 24 | % | ||||||||||
|
Cash
flow from operations:
|
$ | 1,000 | $ | 1,113 | -10 | % | $ | 834 | 20 | % | ||||||||||
TI’s
operating profit increased compared with the fourth quarter of 2008 and the
prior quarter primarily due to higher gross profit, which included the impact of
higher revenue and the benefit associated with higher utilization of
manufacturing assets. In addition, restructuring charges were lower
compared with a year ago.
4Q09 segment
results
| 4Q09 | 4Q08 |
vs. 4Q08
|
3Q09 |
vs. 3Q09
|
Note
|
|||||||||||||||||||
|
Analog:
Revenue
|
$ | 1,289 | $ | 1,015 | 27 | % | $ | 1,184 | 9 | % | (1) | |||||||||||||
|
Operating profit
|
$ | 386 | $ | 78 | 395 | % | $ | 306 | 26 | % | ||||||||||||||
|
Embedded
Processing:
Revenue
|
$ | 412 | $ | 340 | 21 | % | $ | 393 | 5 | % | (2) | |||||||||||||
|
Operating profit (loss)
|
$ | 89 | $ | (2 | ) | n/ | a | $ | 75 | 19 | % | |||||||||||||
|
Wireless:
Revenue
|
$ | 732 | $ | 646 | 13 | % | $ | 675 | 8 | % | (3) | |||||||||||||
|
Operating profit (loss)
|
$ | 178 | $ | (87 | ) | n/ | a | $ | 110 | 62 | % | |||||||||||||
|
Other:
Revenue
|
$ | 572 | $ | 490 | 17 | % | $ | 628 | -9 | % | (4) | |||||||||||||
|
Operating profit
|
$ | 222 | $ | 62 | 258 | % | $ | 272 | -18 | % | ||||||||||||||
The
product categories in each segment are as follows:
-
Analog: high-volume analog & logic, high-performance analog (includes data converters, amplifiers and interface products) and power management
-
Embedded Processing: DSPs and microcontrollers used in catalog, communications infrastructure and automotive applications
-
Wireless: DSPs and analog used in basebands for handsets, OMAP™ applications processors and connectivity products for wireless applications
-
Other: includes DLP® products, calculators, ASIC products, RISC microprocessors and royalties
|
(1)
|
The
increase in Analog revenue from a year ago and from the prior quarter was
primarily due to a combination of strength in power management and
high-volume analog & logic. High-performance analog revenue
also increased, but to a lesser extent. The gains in operating
profit for this segment, both from a year ago and sequentially, were
primarily due to higher gross
profit.
|
|
(2)
|
The
increase in Embedded Processing revenue from a year ago and from the prior
quarter was primarily due to a combination of higher catalog and
automotive product revenue. Revenue from communications
infrastructure products also increased, but to a lesser extent. The
gains in operating profit for this segment, both from a year ago and
sequentially, were primarily due to higher gross
profit.
|
|
(3)
|
The
increase in Wireless revenue from a year ago and from the prior quarter
was primarily due to strength in connectivity products and applications
processors. Baseband product revenue was about even with the
year-ago quarter and increased sequentially. Operating profit in this
segment increased from a year ago primarily due to the combination of
lower restructuring charges and higher gross profit, and increased from
the prior quarter primarily due to higher gross
profit.
|
|
(4)
|
Other
revenue increased from a year ago due to gains in DLP products, royalties
and calculators. Revenue from RISC microprocessors declined
from a year ago. Revenue in this segment decreased from the
prior quarter due to the seasonal decline in calculator
revenue. This was partially offset as revenue from DLP products
and ASIC products increased. Operating profit in this segment
increased from a year ago primarily due to higher gross profit and
declined from the prior quarter due to seasonally lower gross
profit.
|
Restructuring
charges were as follows:
| 4Q09 | 4Q08 | 3Q09 | ||||||||||
|
Analog:
|
$ | 6 | $ | 60 | $ | 4 | ||||||
|
Embedded
Processing:
|
$ | 3 | $ | 24 | $ | 2 | ||||||
|
Wireless:
|
$ | 1 | $ | 130 | $ | 3 | ||||||
|
Other:
|
$ | 2 | $ | 40 | $ | 1 | ||||||
|
Total:
|
$ | 12 | $ | 254 | $ | 10 |
4Q09 additional financial
information
|
Ÿ
|
Net
income included $16 million in discrete tax
benefits.
|
|
Ÿ
|
Orders
were $3.26 billion, up 75 percent from a year ago and up 5 percent from
the prior quarter.
|
|
Ÿ
|
Inventory
was $1.20 billion at the end of the quarter, down $173 million from a year
ago and up $86 million from the prior
quarter.
|
|
Ÿ
|
Capital
expenditures were $436 million in the quarter compared with $76 million a
year ago and $226 million in the prior quarter. Capital
expenditures in the quarter included the purchase of 300-millimeter wafer
manufacturing equipment as part of Qimonda AG's bankruptcy proceedings, as
well as additional assembly/test manufacturing equipment.
|
|
Ÿ
|
The
company used $351 million in the quarter to repurchase 14.8 million shares
of its common stock and paid dividends of $149
million.
|
Year 2009 financial
summary
|
2009
|
2008
|
vs. 2008
|
||||||||||
|
Revenue:
|
$ | 10,427 | $ | 12,501 | -17 | % | ||||||
|
Operating
profit:
|
$ | 1,991 | $ | 2,437 | -18 | % | ||||||
|
Net
income:
|
$ | 1,470 | $ | 1,920 | -23 | % | ||||||
|
Earnings
per share:
|
$ | 1.15 | $ | 1.44 | -20 | % | ||||||
|
Cash
flow from operations:
|
$ | 2,643 | $ | 3,330 | -21 | % | ||||||
TI’s
operating profit decreased 18 percent in 2009 due to lower
revenue. The impact of lower revenue was partially offset by
reductions in operating expenses. Operating profit included the
negative impact of $212 million in restructuring charges, which were down $42
million from 2008.
Year 2009 segment
results
| 2009 | 2008 |
vs. 2008
|
Note
|
||||||||||||||
|
Analog:
Revenue
|
$ | 4,270 | $ | 4,857 | -12 | % | (1) | ||||||||||
|
Operating profit
|
$ | 753 | $ | 1,050 | -28 | % | |||||||||||
|
Embedded
Processing:
Revenue
|
$ | 1,471 | $ | 1,631 | -10 | % | (2) | ||||||||||
|
Operating profit
|
$ | 194 | $ | 268 | -28 | % | |||||||||||
|
Wireless:
Revenue
|
$ | 2,558 | $ | 3,383 | -24 | % | (3) | ||||||||||
|
Operating profit
|
$ | 332 | $ | 347 | -4 | % | |||||||||||
|
Other:
Revenue
|
$ | 2,128 | $ | 2,630 | -19 | % | (4) | ||||||||||
|
Operating profit
|
$ | 712 | $ | 772 | -8 | % | |||||||||||
|
(1)
|
Analog
revenue declined primarily due to lower high-volume analog & logic
revenue.
|
|
(2)
|
Embedded
Processing revenue declined primarily due to lower catalog product
revenue.
|
|
(3)
|
Wireless
revenue declined due to lower baseband
revenue.
|
|
(4)
|
Other
revenue declined across a broad range of products, especially RISC
microprocessors.
|
Restructuring
charges negatively impacted each segment’s operating profit as
follows:
|
2009
|
2008
|
|||||||
|
Analog:
|
$ | 87 | $ | 60 | ||||
|
Embedded
Processing:
|
$ | 43 | $ | 24 | ||||
|
Wireless:
|
$ | 59 | $ | 130 | ||||
|
Other:
|
$ | 23 | $ | 40 | ||||
|
Total:
|
$ | 212 | $ | 254 | ||||
2009 additional financial
information
-
Capital expenditures were $753 million in 2009, down $10 million from 2008.
-
The company used $954 million to repurchase 45.3 million shares of its common stock and paid dividends of $567 million.
For the
first quarter of 2010, TI expects:
-
Revenue: $2.95 - 3.19 billion
-
Earnings per share: $0.44 - 0.52
TI will
update its first-quarter outlook on March 8, 2010.
For the
full year of 2010, TI expects approximately the following:
-
R&D expense: $1.5 billion
-
Capital expenditures: $0.9 billion
-
Depreciation: $0.9 billion
-
Annual effective tax rate: 31%
The tax
rate estimate is based on current tax law and does not assume reinstatement of
the federal R&D tax credit, which expired at the end of 2009.
The following information was filed by Texas Instruments Inc (TXN) on Tuesday, January 26, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Texas Instruments Inc provided additional information to their SEC Filing as exhibits
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Ticker: TXN
CIK: 97476
Form Type: 10-K Annual Report
Accession Number: 0001140361-10-007923
Submitted to the SEC: Tue Feb 23 2010 2:25:33 PM EST
Accepted by the SEC: Tue Feb 23 2010
Period: Thursday, December 31, 2009
Industry: Semiconductors And Related Devices
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