TI posts bigger profit, boosts capital spending

April 22, 2004 – Texas Instruments, Dallas, TX, more than tripled its 1Q04 earnings to $367 million on revenues of $2.94 billion, which was up 5% from 4Q03 and 34% from a year ago. Semiconductor sales were $1.93 billion, up 38% year-on-year, with an operating profit of $465 million, up 7% sequentially and 216% year-on-year. Orders for the semiconductor group were up 2% sequentially and 47% from a year ago.

TI also has hiked its capital spending plans to $1.3 billion, up from initial plans of $1.1 billion, and $800 million a year ago. The company also is adding an additional 90nm manufacturing line and capacity for additional assembly and test capabilities. R&D costs also have risen to $2.1 billion compared with $2.0 billion in 4Q03 and $1.75 billion in 1Q04.

The company projects 2Q revenues of $3.09-$3.33 billion, with semiconductors accounting for $2.65-$2.85 billion (86%) of that, and overall earnings of 23¢-26¢/share.


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