SAN FRANCISCO Texas Instruments has reached an agreement to sell its Sensors & Controls division, according to Tristan Gerra, an analyst with R.W. Baird.
Gerra cited a credible industry source for the report. Neither the buyer nor the purchase price are yet known, Gerra said. It is also not known whether the division is being sold in total, or segmented into pieces for the sale, Gerra said.
The analyst said he views the sale as a positive move by TI, divesting of a business with low gross margins to concentrate on faster-growing businesses. "They are getting closer to a pure growth model," Gerra said.
A spokesperson for TI's Sensor & Controls division said the company would not comment on the reported sale, calling it a rumor.
TI's Sensors & Controls division, which includes the company's radio frequency identification (RFID) business unit, bore the blunt of the blame for TI's falling short of Wall Street's profit expectations for the third quarter. TI has been reportedly mulling the sale of the division, which boasts annual revenue of more than $1 billion, since mid-October.
Gerra also said Tuesday (Nov. 22) that R.W. Baird believes that TI has its first design win for an integrated system-on-chip that includes scaler, de-interlacer and MPEG-2 technology at a leading European digital TV manufacturer. The product, Gerra said, is slated for production next year. Gerra said he views this move as an indication that TI intends to expand silicon content into the fast-growing digital TV market beyond its highly-publicized DLP technology.