Texas Instruments is jolly happy after giving a third-quarter revenue forecast that was stronger than the cocaine nose jobs of Wall Street expected. In a statement it said that customers were confident about placing orders for chips.
Orders picked up in the first half of 2013 and Chief Financial Officer Kevin March said that business continues to improve, following weak demand last year due to concerns about the global economy. According to March orders had been for short-term deliveries, so that's a bit of a change in tone and perhaps confidence on the part of TI customers. Texas Instruments is winding down its wireless chip business as competition from Qualcomm and other rivals has hurt profitability.
TI is focusing on analog and embedded chips used in products ranging from cars to televisions and which account for the bulk of the company's revenue. Analog and embedded account for 78 percent of TI's revenue, up 6 percentage points from a year ago, the company said.
Texas Instruments said its second-quarter results included a gain from the sale of some wireless connectivity technology as well as higher-than-expected charges from the company's restructuring. TI posted second-quarter revenue of $3.047 billion, down 9 percent from the year-ago period. Net income jumped to $660 million, or 58 cents a share, from $446 million in the 2012 second quarter. In the third quarter, revenue will range from $3.09 billion to $3.35 billion, the company predicted.