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$TXN 1Q15 10-Q: As of March 31, 2015, TXN had a variable-rate revolving credit facility from a consortium of investment-grade banks that allows to borrow up to $2Bil until March 2020. As of March 31, 2015, credit facility was undrawn and had no commercial paper outstanding.
Texas Instruments’ 4Q profits nosedived 67% to $344MM, primarily due to tax reforms. Revenue rose 10% vs. 4Q16 due to weaker demand from communication equipment vendors. $TXN saw strong demand for its chips from industrial and automotive segments. For 1Q18, the company expects revenue in the range of $3.49-3.79Bil and EPS between $1.01-1.17.
$TXN's BoD selected Brian Crutcher to become its next president and CEO, effective June 1. Crutcher succeeds current president and CEO, Rich Templeton, who will transition out of these roles over the next 4 months but will remain chairman.
Speaking about 300-mm wafers, $TXN said it has structural cost advantages vs peers due to its manufacturing facilities. It was able to lower cost by 40% on those chips, which is resulting in better margins. Capacity utilization for 300-mm wafers already stands at 25%, which is expected to increase due to see strong demand from its analog customers.
$TXN is one amongst the few chipmakers, which has internal manufacturing capacity for most of its products. This gives flexibility to expand the capacity based on the product demand without any hurdles, which would also save capex. The company expects to maintain gross margin in the range of 70-75%, but on a long-term basis.
$TXN reported 26% jump in its 3Q profits due to double digit growth from its Analog and Embedded Processing segment. It also saw strong demand for its products in industrial and automotive markets. Texas continues to invest in high-margin, high-growth areas, which would bring in steady cash flows and reduce exposure to its volatile PC segment.
$TXN will raise its quarterly cash dividend by 24% from $0.50 per share to $0.62, or $2.48 annualized. The higher dividend will be payable November 13, 2017, to stockholders of record on October 31, 2017. The BoD also authorized the company to repurchase an additional $6Bil of its common stock over time.
Chipmaker $TXN unveiled an evaluation module (EVM) called DLP LightCrafter Display 2000, which is touted to be the industry's most affordable ($99) chipset to deploy DLP technology. Small form factor (0.2 inch) would help developers to design new compact applications. In addition, it is compatible with low-cost processors.
Talking about guidance, $TXN said it has good visibility for 50% of the revenue and the rest depends on various external factors. Normally, the chip maker takes into account the demand patterns of customers, backlog, and the order flow to provide guidance. Historically, sequential revenue growth is weaker in the first and fourth quarters.
Chipmaker Texas said, at the end of 2016, 51% of its revenue came from automotive and industrial customers. YTD, $TXN continues to see growth in both of these markets, which would result in more revenues. At 2016 end, 85% of $TXN revenue came from shipments to locations outside US; shipments to China typically represent a large portion of revenue.
$TXN continues to focus its strategy on the industrial and automotive markets. Chipmaker believes that industrial and automotive segments will be the fastest-growing semiconductor markets due to their increasing semiconductor content, which also provides diversity and longevity of products resulting in high terminal value of the portfolio.
Effective manufacturing strategy & shifting of analog production to 300mm wafer has helped $TXN increase its 2Q17 gross margin to 64.3% vs. 61.2% in 2Q16. Looking ahead, chipmaker expects 3Q17 revenues of $3.74 to 4.06 billion, and EPS between $1.04 and $1.18, which includes an estimated $20MM discrete tax benefit.
$TXN, which supplies chips to $AAPL (iPhone) for charging controller and power management reported strong segment results. Analog revenues increased 18% due to increased production of 300mm wafers, which is 40% cheaper vs 200mm wafers. Embedded Processing revenue grew 15% due to increased revenues from microcontrollers and processors product lines.
Dallas based chipmaker $TXN, which sells products to about 100,000 customers, reported impressive 2Q17 results, beating Street estimates. Revenue increased 13% backed by continued strong demand for its chips from automotive and industrial customers. The company reported Q2 EPS of $1.03 vs. Street consensus of $0.96.
Semiconductor major $TXN, which derives about 85% of revenue from shipments to locations outside US, announced today that Brian Crutcher has joined its Board. Crutcher has been with the chipmaker for more than 20 decades. Texas' CEO commented, "He knows TI well and brings strong financial acumen and business judgment to the board."
$TXN priced $300MM of 2.750% senior unsecured notes due March 12, 2021, and $300MM of 2.625% senior unsecured notes due May 15, 2024. $TXN expects to use the net proceeds of this offering for repayment of outstanding debt and the remainder, if any, for general corporate purposes. The offering is expected to close on May 4, 2017.