Sunday, October 22, 2006

TI Reports Q3 Revenue of $3.76 billion, up 13% YoY

Texas Instruments reported third-quarter 2006 revenue of $3.76 billion. Revenue grew 2 percent compared with the second quarter, which included a $70 million royalty settlement, and increased 13 percent from the same quarter a year ago. The increases were primarily due to continued strong demand for the company's high-performance analog and DSP products.

The third quarter was one of the best in TI's history," said Rich Templeton, TI president and chief executive officer. "Our revenue once again set an all-time record as our share continued to climb in our core markets... At the same time, orders declined, leading us to expect that fourth- quarter Semiconductor growth will be below the seasonal average. A couple of factors are influencing this. First, we believe customers have broadly replenished their own inventory and are confident in operating with lower backlog now that chip supply has improved. The second factor is wireless, where we expect that unit mix will be more weighted toward low-priced cell phones and inventory correction will continue in Japan. Even with a less- than-seasonal fourth quarter, we expect the growth rate of our Semiconductor business to be in the upper teens for the year."

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