SAN FRANCICSCO—Texas Instruments Inc. Monday (April 23) reported first quarter sales that beat analysts' expectations as the company's top executive said TI expects 2012 to be "a good year for growth."
TI (Dallas) reported first quarter sales of $3.12 billion, down 9 percent from the previous quarter and down 8 percent compared to the first quarter of 2011. The company reported a net income for the quarter of $265 million, or 22 cents per share, down 11 percent from the previous quarter and down 60 percent from the first quarter of 2011.
"As we expected, our business cycle bottomed in the first quarter, and early signs of growth began to emerge," said Rich Templeton, TI's chairman, president and CEO, in a statement. "Orders were up 13 percent, and backlog is growing again. Particularly encouraging is the breadth of increased orders across geographical regions and markets, including the industrial sector."
TI's first quarter sales came in above consensus analysts' expectations and above its own revised sales target issued last month.
TI reported orders of $3.24 billion in the first quarter, up 13 percent from the previous quarter, but 9 percent from the first quarter of 2011. The company said its inventory rose to $1.85 billion in the quarter, up $56 million compared to the prior quarter and up $175 million compared to the fourth quarter of 2011.
TI said its earnings per share for the first quarter included 10 cents per share for charges associated with the company's acquisition of National Semiconductor Corp. and restructuring. Total acquisition-related charges associated with the acquisition were $174 million in the first quarter, including $21 million in cost of revenue associated with the contract termination of a distributor.
Templeton said TI continues to make progress with the former National Semiconductor, now known as the TI's Silicon Valley Analog division. Sales of embedded processing products were up 7 percent in the first quarter compared to the fourth quarter of 2011, Templeton said.
TI's sales of wireless chips declined 48 percent sequentially in the first quarter as TI entered the final phase of its exit from baseband products, Templeton said. Baseband chips made up less than 3 percent of TI's total sales in the first quarter, Templeton said.
For the second quarter, TI said it expects sales to grow to between $3.22 billion and $3.48 billion, a sequential increase of 3 to 12 percent. TI's second quarter's results will be negatively affected by about $100 million in charges related to the National Semiconductor and about $10 million of restructuring charges, the company said.
"We're poised for growth and share gains as markets rebound," Templeton said.
TI said it expects to spend about $2 billion on R&D and about $700 million in capital expenditures in 2012. First quarter capital expenditures totaled $103 million, mostly for test and assembly equipment and wafer manufacturing equipment, TI said.