SAN FRANCISCO — Texas Instruments Inc. said Monday it expects sales to improve sequentially by up to 10 percent in the third quarter. The company reported that second-quarter sales of $3.05 billion were down about 9 percent compared with the second quarter of 2012.
Dallas-based TI reported a net income of $660 million for the second quarter, up 48 percent from the second quarter of 2012.
Rich Templeton, TI's chairman, president, and CEO, said through a statement that TI now derives 78 percent of its revenue from analog and embedded processing products, up from 72 percent in the second quarter of 2012. Revenue from TI's legacy wireless products, which the company has been phasing out for several years, declined to less than 5 percent of TI's total sales in the second quarter, Templeton said. That number, he added, should further decline to less than 2 percent in the third quarter.
For the third quarter, TI expects sales to improve to between $3.09 billion and $3.35 billion, the company said.
"In the third quarter, investors will see for the first time the analog and embedded processing company that we've been building over the past years without the distraction of the wireless business we've been unwinding," said Kevin March, TI's chief financial officer, in a conference call with analysts following the second-quarter report.
TI also disclosed that it sold some of its wireless connectivity technology to a customer during the second quarter. March declined to specify which customer it sold the technology to. He said the sale reflects TI's "continued monetization of the legacy wireless business even as this product revenue declines."