Texas Instruments (Nasdaq: TXN) Reports 23% Sales Growth
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Texas Instruments Incorporated (Nasdaq: TXN), the Dallas-based semiconductor maker, reported second-quarter revenue of $5.46 billion on July 22, a 23% increase from the same quarter a year earlier. The company said growth was led by its industrial, data center and automotive markets. The result reflects recovering demand for TI's analog and embedded processing chips, which are used across industrial and automotive electronics. Sales in those markets move with the semiconductor industry's supply and demand cycles, which had weighed on the sector in earlier quarters. Revenue also rose 13% from the first quarter. Net income rose 53% to $1.98 billion, while operating profit increased 48% to $2.31 billion. Earnings came to $2.14 per share, up 52%, and included a 5-cent benefit that was not in the company's original guidance. TI's Analog segment, its largest, generated revenue of $4.37 billion, up 26% from a year earlier. Segment operating profit rose 50% to $1.99 billion. The Embedded Processing segment reported revenue of $788 million, up 16%. Its operating profit rose 98% to $168 million. Revenue in the smaller Other segment fell 2% to $310 million. TI reported free cash flow of $6.5 billion for the trailing 12 months, up from $1.76 billion a year earlier. Free cash flow, which the company defines as a non-GAAP measure equal to operating cash flow less capital expenditures plus...
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