.gif)
.gif)
Industry News
January 23, 2013
TI Q4 2012 Revenue was $2.98 Billion Down 13% from Q4 2011
Texas Instruments, Inc. (TI) reported decreased financial results for the fourth quarter of 2012 compared with the previous quarter (the third quarter of 2012 and with the fourth quarter of the previous year (2011). Revenue of $2.98 billion in Q4 of 2012 represented a decline of 13% from the previous quarter and a decline of 12% from the previous year. Net income of $246 million represented a decline of 11 percent from the previous quarter and a decline of 66% from the previous year.
Recommended: Ericsson Delivers 750W Quarter-Brick using Proprietary HRR Topology
Earnings per share (EPS) for the current quarter includes 6 cents of charges associated with the company's 2011 acquisition of National Semiconductor Corporation and restructuring that was included in the company's outlook provided in December. EPS also includes 23 cents of charges associated with the recently announced restructuring of the company's Wireless business of which 21 cents was included in the company's outlook. In addition, EPS includes 15 cents for a discrete tax benefit and associated interest that was not included in the company's outlook. Excluding these items, non-GAAP EPS rounds to 36 cents.
"We continue to operate in a weak demand environment," said Rich Templeton, TI's chairman, president and CEO. "Our visibility into future demand remains limited as our lead times are short and our customers are reluctant to commit to extended backlog. On the positive side, we believe customers and distributors are operating with lean inventory. Our own operations are disciplined and performing well, with gross margin up despite increased underutilization costs, and with operating expenses down from a year ago.
Related: Fujitsu Unveils MCUs Targeting Industrial Equipment and High-End Consumer Applications
"Even in the current economy, our strategy is yielding high free cash flow and strong returns to our shareholders. For the full year, free cash flow of almost $3 billion grew 20 percent and was 23 percent of our revenue. We returned 90 percent of this free cash flow to our shareholders through our continued share repurchases and higher dividend payments. Our strong free cash flow is the result of more of our revenue coming from Analog and Embedded Processing, which offer solid growth and high margins and have low capital needs. Our free cash flow will also benefit from our strategic purchases of manufacturing capacity during the past few years. We have almost half of our manufacturing capacity available to support future growth, which means we can maintain our capital spending at very low levels in the years ahead, even as our revenue grows."
Acquisition charges associated with TI's acquisition of National Semiconductor in 2011 were $88 million in the fourth quarter, primarily amortization of intangibles. Included in Restructuring charges/other are charges of $351 million associated with restructuring the Wireless business, including $90 million of non-tax deductible goodwill impairment, and $12 million associated with the previously announced planned closure of several older factories.
Opinion: Power Struggle — Getting the Most Out of Your PSU through Enhanced Design Solutions
Compared with a year ago, gross profit declined due to lower revenue and the costs associated with lower levels of factory utilization. These were partially offset by lower manufacturing costs and the non-recurrence of the $103 million in cost of revenue in the year-ago quarter attributable primarily to the fair value write-up of acquired inventory associated with the National acquisition. Compared with the prior quarter, gross profit declined due to lower revenue, including the non-recurrence of $60 million in business interruption insurance proceeds associated with the 2011 earthquake in Japan.
Operating profit decreased from a year ago as the combination of higher restructuring charges and lower gross profit more than offset lower acquisition charges and operating expenses. Compared with the prior quarter, operating profit declined primarily due to higher restructuring charges/other, including the Wireless restructuring charge and the non-recurrence of a $144 million benefit in the prior quarter associated with a change in a Japan pension program, as well as lower gross profit.
Share this story
Send via E-mail
Post to Twitter
On the Web:
White Papers
March 11, 2013
Power Modules for Charger Applications
Sponsored by Vincotech
February 27, 2013
The Adaptive Cell Converter Topology Enables Constant Efficiency Over Universal Input AC Line in Front-End, High-Density Power Factor Correction Applications
Sponsored by Vicor Corp.
February 27, 2013
From 48 V direct to Intel VR12.0: Saving "Big Data" $500,000 per datacenter, per year
Sponsored by Vicor Corp.
More White Papers
- Ericsson Delivers 750W Quarter-Brick using Proprietary HRR Topology
- IXYS Introduces an Anode-Gated Thyristor Technology Platform
- Dreamliner Nightmares a Factor in New UL Standards Activities for Li-ion Batteries
- Ideal Diode Bridge Controller Minimizes Rectifier Heat and Voltage Loss
- Siemens Installing Regenerative Energy Storage Unit on Light Rail Line
- Silicon Labs acquires Energy Micro for IoT, Smart Energy and Portable Electronics
- NXP Brings High Efficiency to 12V MR16 Lamps with Dimmable LED Controller
- Ultra-Compact High-Efficiency Power Supplies for Automotive Applications
- Curtis Industries Acquires California-based Tri-Mag
- Convection-Cooling Eliminates Fan Maintenance and Audible Noise in 250W Power Supplies
- Single-Stage LED Drivers Deliver Dimming and Thermal Protection with Lower BOM Cost
- Convection-Cooling Eliminates Fan Maintenance and Audible Noise in 250W Power Supplies
- Ericsson Delivers 750W Quarter-Brick using Proprietary HRR Topology
- Siemens Installing Regenerative Energy Storage Unit on Light Rail Line
- Dreamliner Nightmares a Factor in New UL Standards Activities for Li-ion Batteries
- GE Intros Megawatt UPS Global Platform with Industry-Leading Efficiency
- Dow Corning adds Thermal Management Options Optimized for Electronics Applications
- ABB Demonstrates Technology to Power Flash Charging Electric Bus in 15 Seconds
- Power-One Announces New Open-Frame Products for Industrial and Medical Applications
- ABB to Produce PV Inverters in South Africa as Solar Market Expands
- Green Building Power Forum 2010: Fujitsu Components America
- Darnell's Digital Power Forum 2009: CUI Incorporated
- Green Building Power Forum 2010: EMerge Alliance
- Green Building Power Forum 2010: Anderson Power Products
- Green Building Power Forum 2009: Independence Station
- Darnell's Digital Power Forum 2009: Coilcraft
- Darnell's Digital Power Forum 2009: Champs Technologies
- Darnell's Digital Power Forum 2009: EXAR Corporation
- Darnell's Digital Power Forum 2009: PMBus
- Darnell's Digital Power Forum 2009: Power Plaza
Design Features
October 22, 2012
Energy Efficiency with Class D Amplifier Modules
Class-D switching amplifiers are helping audio designers create personal multimedia devices and home audio/visual systems that demonstrate how compact and stylish equipment can also deliver high sound quality and high audio output power. The key to this breakthrough, providing freedom from the large and bulky boxes housing traditional audio products, lies in the class-D amplifier’s high energy efficiency, which is typically around 90%. This allows designers to reduce or eliminate heatsinks as well as using smaller-sized PCBs and smaller components such as transformers, connectors and power supplies.
Design Features
October 8, 2012
The Role of Hall Effect Sensors in Power Distribution Infrastructure
Power distribution units (PDUs) form an essential part of modern computing and data communications hardware. They provide multiple outputs for transferring electrical power with maximum efficiency, controlling the power capacity and safeguarding against the possible causes of supply interruption. With an ever increasing need from tech savvy consumers for higher data throughput and greater quantities of data storage capacity, as well as tough international legislation now governing CO&sub2; emissions, the demands being placed on these units are proving challenging for engineering teams to satisfy.
Product Focus
August 13, 2012
The Year in AC-DC Power Supply Technology
The past year witnessed significant new product releases, technological developments, and industry news related to the field of AC-DC Power Supply technology.