DALLAS-Texas Instruments Inc. reported revenues of $2.97 billion for the first quarter, which is about even with the $2.94 billion the company reported for the first quarter of last year, but down 6 percent sequentially due in part to declines in its semiconductor business.
Net income was $411 million, or 24 cents per share, during the quarter, compared with $367 million, or 21 cents per share, during the first quarter of 2004.
The company said it increased production in its semiconductor factories to realign factory output with its shipments, following a significant reduction in its inventories since the fourth quarter.
“The market environment is improving,” said Rich Templeton, president and chief executive officer of the company. “We believe the inventory correction in TI’s standard semiconductor products at distributors that began in the third quarter of 2004 is complete, as demonstrated by sequential growth in revenue and orders for these products.
“While the overall environment for cell phones will likely support a lower growth rate than last year, we continue to have high expectations for our wireless operations in 2005,” said Templeton. “In the first quarter, TI’s wireless revenue grew 15 percent from a year ago and declined 14 percent sequentially following a strong fourth quarter. Recent market reports have confirmed that TI is the world’s top provider of semiconductors used in the wireless market, and we expect to gain additional share this year in the fast-growing market for 3G UMTS modems based on the strength of our digital signal processors.”
The company said it expects second-quarter revenues will range from $3 billion to $3.24 billion, and EPS will range from 25 cents to 29 cents.
