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.