Texas Instruments said it is seeing “early signs of growth ” as it reported first-quarter revenue of $3.12bn and net income of $265m.
“Orders were up 13%, and backlog is growing again. Particularly encouraging is the breadth of increased orders across geographical regions and markets, including the industrial sector,” said Rich Templeton, TI’s chairman, president and CEO.
Templeton was upbeat and he expects 2012 to be a “growth year”.
“We’re poised for growth and share gains as markets rebound. Our product portfolio is strong, and our design position with customers is excellent. Our inventory is well-staged, and production in our factories is ramping,” said Templeton.
Sales in the analogue business were about level with the prior quarter while the processor business was were up 7% led by growth in the automotive and communications infrastructure markets.
“Sales in our Wireless segment declined sharply as we entered the final phase of our exit from baseband products, which were less than 3% of total sales in the quarter,” said Templeton.
Operating profit was lower than a year ago due in part to acquisition-related charges and higher operating expenses. Operating profit was up on Q4 2011
Charges associated with TI’s September 2011 acquisition of National Semiconductor were $174m in the first quarter. This included a one-time charge of $21m for loss revenue associated with the contract termination of a distributor.
Compared with a year ago, lower gross profit in the quarter primarily reflects lower revenue. Compared with the fourth quarter, lower gross profit reflects lower revenue, which was partially offset by lower charges to cost of revenue related to the National acquisition and an increase in insurance proceeds.