DALLAS--Amid a move to increase its capital spending in 2004, Texas Instruments Inc. today (January 26, 2004) reported that fourth quarter 2003 revenue of $2.770 billion increased 9 percent sequentially and 29 percent from the year-ago period.
Net income in the fourth quarter was $512 million, or $0.29 per share. This compares to a profit of $447 million, or $0.25 per share, in the previous quarter and a loss of $589 million, or minus $0.34 a share, in the like period a year ago.
In the fourth quarter, the company incurred $13 million in charges related to previously announced restructuring actions, of which $11 million is included in cost of revenue and $2 million is included in selling, general and administrative (SG&A) expense.
For the year, TI revenue of $9.834 billion increased $1.451 billion from 2002. For the year, net income of $1.198 billion, or $0.68 cents per share, increased by $1.542 billion from 2002.
TI attributed the results to robust growth across almost all of the company's semiconductor product lines. Semiconductor revenue in the fourth quarter increased 16 percent sequentially and 34 percent from the year-ago period primarily due to strong demand for a broad range of DSP and analog products.
"The fourth quarter marked the second consecutive period of double-digit sequential revenue growth in semiconductor," said Tom Engibous, TI chairman, president and CEO, in a statement. "The new revenue record for our sales into the wireless market, and the excellent growth in both DSP and high-performance Analog are particularly noteworthy. When compared to competitors, I believe TI's performance for the quarter and for the year will show that this growth is due to both a broad recovery in the market and to gains in market share."
For the first quarter of 2004, TI expects revenue to be in the $2.720-to-$2.950 billion range. Semiconductor sales are expected to be between $2.400-to-$2600 billion. TI expects earnings per share to be in the range of $0.16 to $0.22.
For 2004, TI expects R&D to be about $2.0 billion and capital expenditures to be about $1.1 billion. In 2003, capital expenditures of $800 million decreased by $2 million from 2002. TI's capital expenditures in 2003 were primarily for the deployment of advanced semiconductor manufacturing capabilities.