DALLAS—Texas Instruments Inc. late yesterday reported first-quarter net income of $585 million, a 42-percent increase from the $411 million profit in the year-ago quarter, and it issued a bullish forecast for the current quarter, causing its stock price to rise in after-hours trading yesterday.
The company attributed the growth in sales of its chips—its leading product used in mobile phones and wireless infrastructure—to continuing, strong demand by the wireless sector.
The semiconductor industry’s foray into a so-called “single chip solution”—actually the combination of several functions on one chip, supported by other chips—is expected to help handset vendors pursuing low-cost, mobile handset sales in emerging markets, the source of wireless industry’s “next billion” subscribers, according to analysts. Texas Instruments expects to produce and ship its single-chip solution this year. TI and other semiconductor makers also produce chips that contribute to improved power management in advanced mobile handsets, whose features would otherwise drain power or produce heat; feature-rich handsets are expected to face continued demand in mature wireless markets such as the United States, where consumers are replacing outmoded phones.
Gross revenues at the Dallas-based semiconductor company in the first quarter rose to $3.33 billion from $2.7 billion in the year-ago quarter, a 23-percent jump that edged out analysts’ expectations of $3.29 billion. Revenue in the first quarter, typically the company’s weakest quarter, was nearly even with the fourth quarter. The company’s results excluded its sensors and controls business, which it previously announced would be sold; that transaction is expected to close in the second quarter.
TI’s rival, Qualcomm Inc., is expected to report its quarterly earnings today.
