Gains in fourth-quarter DSP and analog revenue capped a strong year for Texas Instruments Inc., boosting earnings and validating a lengthy restructuring effort, the company reported today.
"1999 was a breakthrough year for growth and profitability at TI," said Tom Engibous, TI's chairman, president, and chief executive. "Our semiconductor business outgrew the industry, leading TI to gain market share overall and in its core areas of DSP and analog. ... We expect continued strong growth in 2000, with DSP and analog as the catalysts."
For the fourth quarter, TI reported net income of $430 million on revenue of $2.6 billion, up from net income of $199 million on revenue of $2 billion in the fourth quarter of 1998.
For the year, TI reported net income of $1.4 billion on revenue of $9.5 billion, up from net income of $416 million on revenue of $8.6 billion the year before.
"We really demonstrated that growth in DSP and analog could drive the company's performance," said William A. Aylesworth, the company's senior vice president, treasurer, and chief financial officer. "This is the first full year since we sold the DRAM business to Micron [Technology Inc.], so the comparison shows the way we can move the company's margins and growth based on DSP and analog."
For the year, revenue from DSP grew 28%, while analog grew 17%, both of which should exceed total market growth and allow TI to increase its leading market share in both areas of the company's semiconductor business, Aylesworth said.