''TI is building barriers to entry in 300-mm analog manufacturing, and has the scale, sales force, and portfolio cross-selling capabilities to be a very formidable competitor,'' said Craig Berger, an analyst with FBR.
Texas Instruments this week reported first-quarter revenue of $3.21 billion, up 54 percent from a year ago and up 7 percent from the previous quarter. Net income was $658 million, or $0.52 a share, in the period, compared to $17 million, or $0.01 a share, a year ago, and $655 million, or $0.52, from the previous quarter.
TI beat Wall Street's estimates. It was supposed to earn $0.51 on sales of $3.13 billion.
''Texas Instruments reported robust 1Q results and gave upside 2Q guidance driven by robust global demand, some downstream supply chain inventory growth, and steady financial and business execution,'' said Berger in a report. ''Importantly, management said lead times are now contracting as capacity ramps, and that TI has seen no corresponding order cancellations or debooking.''
As reported, TI was suffering from extended lead times.