MANHASSET, N.Y. Semiconductor supplier Texas Instruments Inc. posted second quarter sales of $3.7 billion, up 11 percent sequentially and 24 percent from a year ago. Earnings from continuing operations were $2.4 million or 47 cents per share, up 42 percent sequentially and 34 percent from a year ago.
Both sales and earnings met analysts' estimates.
Texas Instruments (Dallas) attributed the results to strong semiconductor demand as well as seasonal demand for graphing calculators as retailers began to stock for the upcoming back-to-school season. Revenue included a $70 million royalty settlement.
"All regions of the world showed strong revenue growth from a year ago," said Rich Templeton, president and chief executive of TI, in a statement. "Revenue from our wireless semiconductors grew 27 percent, including more than 70 percent growth in 3G; revenue from high-performance analog semiconductors grew 32 percent; and revenue from our DLP picture technology grew 34 percent.
TI reported gross profit of $1.91 billion, or 51.6 percent of revenue, up $235 million from the prior quarter and $481 million from the year-ago quarter. Research and development (R&D) expense was $536 million, up $3 million from the prior quarter and $51 million from the year-ago quarter, due to spending for new wireless semiconductors.
Capital expenditures were $374 million, down $34 million from the prior quarter but up $127 million from the year-ago quarter.
For the third quarter of 2006, TI expects total sales of $3.63 billion to $3.95 billion, with $3.45 billion to $3.75 billion from semiconductors and $180 million to $200 million from its Educational & Productivity Solutions business. Earnings per share are projected at 42 to 48 cents per share.