Semiconductor maker, Texas Instruments Incorporated (NASDAQ: TXN) said late last evening that its fiscal second-quarter net income increased 48%, aided by a big onetime gain (the company transferred technology to an unnamed client for $315 million).
Shares of Texas Instruments gained 1.95% in afterhours trading as the company provided fairly optimistic outlook for the current quarter. For the fiscal third quarter, the company’s midpoint guidance both for the revenue and earnings were better than analysts’ forecast.
Commenting over the positive outlook, Texas Instruments’ Chief Financial Officer, Kevin March said in an a interview, “Customers are beginning to give us orders a little further out in time,” according to the Wall Street Journal.
“They are getting a little bit more confident as to what their needs are,” added March.
For the fiscal second quarter, the Dallas Texas based company reported a net income of $660 million or 58 cents a share compared to a profit of $446 million or 38 cents a share, in the year-earlier quarter.
Revenue fell $3.05 billion from $334 billion, in the same quarter of last year.
Stripping out onetime items such as gains of 16 cents a share arising from a transfer of technology, charges related to restructuring, the Company earned 42 cents a share, a penny higher than analysts’ expectation, according to a data compiled by Thomson Reuters.
The Company said that revenue, (including legacy wireless business), fell 9% in the fiscal second quarter from the same period of last fiscal year but rose 6% from the preceding quarter. Excluding income from wireless chip business, revenue climbed 8% from the year-earlier quarter.
Texas Instruments said that revenue from “embedded processing” business accounted for 78% of the total revenue while revenue from legacy wireless business was less than 5% of the total revenue.
For the fiscal third quarter, Texas Instruments expects to earn between 49 cents to 57 cents a share on revenue range of $3.09 billion to $3.55 billion. Analysts surveyed by Thomson Reuters had expected earnings of 51 cents a share on revenue of $3.2 billion.
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