TI reports third quarter 2020 financial results and shareholder returns

DALLAS, Oct. 20, 2020 /PRNewswire/ — Texas Devices Integrated (TI) (Nasdaq: TXN) at this time reported third quarter income of $three.82 billion, internet earnings of $1.35 billion and earnings per share of $1.45.

Relating to the corporate’s efficiency and returns to shareholders, Wealthy Templeton, TI’s chairman, president and CEO, made the next feedback:

• “Income elevated 18% sequentially with notable power from the rebound of automotive demand and rising demand from private electronics. Income elevated 1% from the identical quarter a 12 months in the past.
• “In our core companies, Analog income grew 18% and Embedded Processing grew 19% sequentially. From a 12 months in the past, Analog income grew 7% and Embedded Processing declined 10%.
• “Our money stream from operations of $5.eight billion for the trailing 12 months once more underscored the power of our enterprise mannequin. Free money stream for a similar interval was $5.2 billion and 38% of income. This displays the standard of our product portfolio, in addition to the effectivity of our manufacturing technique, together with the good thing about 300-millimeter Analog manufacturing.
• “We now have returned $6.four billion to homeowners previously 12 months via inventory repurchases and dividends. Over the identical interval, our dividends represented 64% of free money stream, underscoring their sustainability. In September, we introduced we might enhance our dividend by 13%. Collectively, our inventory repurchases and dividends mirror our continued dedication to return all free money stream to our homeowners.
• “TI’s fourth quarter outlook is for income within the vary of $three.41 billion to $three.69 billion, and earnings per share between $1.20 and $1.40.”

Free money stream, a non-GAAP monetary measure, is money stream from operations much less capital expenditures.

Earnings abstract

Quantities are in thousands and thousands of , besides per-share quantities.

Money era

Quantities are in thousands and thousands of .

Money return

Quantities are in thousands and thousands of .

Section outcomes

Quantities are in thousands and thousands of .

In contrast with the year-ago quarter:

Analog: (consists of Energy and Sign Chain)

• Income elevated in Sign Chain and Energy.
• Working revenue elevated as a consequence of larger income and related gross revenue.

Embedded Processing: (consists of Linked Microcontrollers and Processors)

• Income decreased in each product strains.
• Working revenue decreased as a consequence of decrease income and related gross revenue.

Different: (consists of DLP^® merchandise, calculators and customized ASIC merchandise)

• Income decreased $72 million, and working revenue decreased $23 million.

Non-GAAP monetary info

This launch consists of references to free money stream and ratios based mostly on that measure. These are monetary measures that weren’t ready in accordance with GAAP. Free money stream was calculated by subtracting capital expenditures from probably the most immediately comparable GAAP measure, money flows from working actions (additionally known as money stream from operations).

We consider that free money stream and the related ratios present perception into our liquidity, our cash-generating functionality and the amount of money doubtlessly accessible to return to shareholders, in addition to perception into our monetary efficiency. These non-GAAP measures are supplemental to the comparable GAAP measures.

Reconciliation to probably the most immediately comparable GAAP measures is supplied within the desk under.

Quantities are in thousands and thousands of .

This launch additionally consists of references to an annual working tax charge, a non-GAAP time period we use to explain the estimated annual efficient tax charge, a GAAP measure that by definition doesn’t embrace discrete tax gadgets. We consider the time period annual working tax charge helps differentiate from the efficient tax charge, which incorporates discrete tax gadgets.

Discover concerning forward-looking statements

This launch consists of forward-looking statements supposed to qualify for the secure harbor from legal responsibility established by the Personal Securities Litigation Reform Act of 1995. These forward-looking statements typically will be recognized by phrases similar to TI or its administration “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or different phrases or phrases of comparable import. Equally, statements herein that describe TI’s enterprise technique, outlook, targets, plans, intentions or objectives are also forward-looking statements. All such forward-looking statements are topic to sure dangers and uncertainties that might trigger precise outcomes to vary materially from these in forward-looking statements.

We urge you to rigorously think about the next essential elements that might trigger precise outcomes to vary materially from the expectations of TI or our administration:

• The length and scope of the COVID-19 pandemic, authorities and different third-party responses to it and the results for the worldwide financial system, together with to our enterprise and the companies of our suppliers, prospects and distributors;
• Financial, social and political situations, and pure occasions within the nations wherein we, our prospects or our suppliers function, together with international commerce insurance policies;
• Market demand for semiconductors, significantly within the industrial and automotive markets, and buyer demand that differs from forecasts;
• Our potential to compete in merchandise and costs in an intensely aggressive trade;
• Evolving cybersecurity and different threats referring to our info know-how techniques or these of our prospects or suppliers;
• Our potential to efficiently implement and understand alternatives from strategic, enterprise and organizational adjustments, or our potential to appreciate our expectations concerning the quantity and timing of restructuring expenses and related value financial savings;
• Our potential to develop, manufacture and market modern merchandise in a quickly altering technological atmosphere, and our well timed implementation of recent manufacturing applied sciences and set up of producing gear;
• Availability and price of uncooked supplies, utilities, manufacturing gear, third-party manufacturing companies and manufacturing know-how;
• Product legal responsibility, guarantee or different claims referring to our merchandise, manufacturing, supply, companies, design or communications, or recollects by our prospects for a product containing one in every of our components;
• Compliance with or adjustments within the advanced legal guidelines, guidelines and laws to which we’re or might grow to be topic, or actions of enforcement authorities, that prohibit our potential to function our enterprise, or topic us to fines, penalties or different authorized legal responsibility;
• Adjustments in tax legislation and accounting requirements that affect the tax charge relevant to us, the jurisdictions wherein income are decided to be earned and taxed, opposed decision of tax audits, will increase in tariff charges, and the flexibility to appreciate deferred tax belongings;
• A loss suffered by one in every of our prospects or distributors with respect to TI-consigned stock;
• Monetary difficulties of our distributors or their promotion of competing product strains to our detriment; or disputes with important distributors;
• Losses or curtailments of purchases from key prospects or the timing and quantity of distributor and different buyer stock changes;
• Our potential to keep up or enhance revenue margins, together with our potential to make the most of our manufacturing services at enough ranges to cowl our fastened working prices, in an intensely aggressive and cyclical trade and altering regulatory atmosphere;
• Our potential to keep up and implement a powerful mental property portfolio and preserve freedom of operation in all jurisdictions the place we conduct enterprise; or our publicity to infringement claims;
• Instability within the international credit score and monetary markets;
• Will increase in well being care and pension profit prices;
• Our potential to recruit and retain expert personnel, and successfully handle key worker succession; and
• Impairments of our non-financial belongings.

For a extra detailed dialogue of those elements, see the Danger elements dialogue in Half II Merchandise 1A of TI’s Type 10-Q for the quarter ended March 31, 2020. The forward-looking statements included on this launch are made solely as of the date of this launch, and we undertake no obligation to replace the forward-looking statements to mirror subsequent occasions or circumstances. If we do replace any forward-looking assertion, you shouldn’t infer that we are going to make further updates with respect to that assertion or some other forward-looking assertion.

About Texas Devices

Texas Devices Integrated (Nasdaq: TXN) is a worldwide semiconductor firm that designs, manufactures, assessments and sells analog and embedded processing chips for markets similar to industrial, automotive, private electronics, communications gear and enterprise techniques. Our ardour to create a greater world by making electronics extra inexpensive via semiconductors is alive at this time, as every era of innovation builds upon the final to make our know-how smaller, extra environment friendly, extra dependable and extra inexpensive – making it doable for semiconductors to enter electronics in every single place. We consider this as Engineering Progress. It is what we do and have been doing for many years. Be taught extra at TI.com.

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SOURCE Texas Devices Integrated

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