News

Texas Instruments Reports Increase in Profits

July 24, 2005 by Jeff Shepard

Texas Instruments Inc. (TI, Dallas, TX) reported that profits increased amid strong demand for its chips for high-end phones, pushing shares up nearly five percent. Net income in the company's second quarter grew to $628 million, or $0.38 per diluted share, compared with the year-earlier quarter's profit of $441 million, or $0.25. The latest quarter's results included $0.06 per share in tax-related gains. The company's ratio of orders to bookings had turned positive for the first time since the first quarter of 2004.

Revenue was flat compared with a year ago at $3.24 billion, but it was up nine percent compared with the first quarter. In early June, TI forecast revenue of between $3.12 billion and $3.24 billion. It had also forecast earnings per share of between $0.27 and $0.30. The company plans to increase its annual dividend to $0.12 per share from $0.10 per share. In addition, TI's board of directors has authorized the buyback of an additional $2 billion of common stock, the third largest repurchase program in the past 10 months.