January 24, 2006 – Texas Instruments said overall revenues in 4Q05 were even with the prior quarter at $3.59 billion, although chip sales were up 3% sequentially to $3.23 billion mainly due to strong wireless and analog demand.
Overall profits were $655 million, up 4% sequentially and 33% from a year ago, while semiconductor operating margins increased 11.0 percentage points from a year ago to 20.8% of revenues.
Capital expenditures in 4Q05 totaled $346 million, primarily for backend and frontend equipment and construction of a new 300mm facility in Richardson, TX, down $104 million sequentially but a $135 million increase from a year ago. For the year, capex was down 2.4% to $1.33 billion. In 2006 TI projects capex of about $1.3 billion, with R&D expenses increasing about 9% to $2.2 billion.