Texas Instruments Inc. Incorporated earned $3.05 billion during the second quarter, with net income of $660 million, meeting its guidance for boosting its revenue by 6%. Net income jumped 48% year-over-year.
TI said that the results included a gain from transferring wireless connectivity technology to a customer, as well as higher than expected restructuring costs. Rich Templeton, TI’s chairman, president and CEO, noted that excluding legacy wireless, TI’s revenues grew 8% and that its products for industrial and automotive markets were “important contributors.” Analog and embedded processing now account for 78% of TI’s revenue, and its legacy wireless products declined to less than 5% of revenue as it winds down the product lines. Templeton said that figure should be less than 2% in the third quarter. The embedded processing segment includes TI’s products in processors, microcontrollers and connectivity.
TI said that it expects revenues in the range of $3.09-$3.35 billion for the third quarter, and for the full year, R&D expenses of $1.5 billion and capital costs of $0.5 billion.
RADCOM, which provides service assurance for mobile and fixed-line networks, saw its second quarter revenues climb by 59% year-over-year — up from $3.4 million in last year’s second quarter and up 19% from the first quarter of 2013, and returning the company to profitability. RADCOM said the increase was due to executing on its backlog and momentum in the Latin American and Asian markets, as well as operators’ investment in LTE and VoLTE infrastructure.
Net income was $204,000, compared to a net loss of $1.8 million during the same period last year, and a stronger performance than RADCOM’s $594,000 loss in the first quarter of this year.
“We are very pleased to report a return to profitability in continuation of the strong momentum that has been developing for RADCOM over the past three quarters, demonstrating the success of our backlog execution and cost reduction programs,” said David Ripstein, RADCOM’s CEO, in a statement.
“Our business is being driven by a strong tailwind: the global explosion in data traffic, which is forcing operators to invest in next-generation LTE and VoLTE infrastructures,” Ripstein added. He said the company is “participating in more and larger tenders with many of the world’s top-tier operators, including both existing and potential new customers” and recently won seven LTE deals.
