Texas Instruments reported Q3 revenue of $3.39 billion, net income of $563 million and earnings per share of $0.43. TI’s revenue declined 8 percent compared with the third quarter of last year as growth in Embedded Processing was more than offset by declines in Wireless and Other revenue. Revenue was about even with the prior quarter.
“We entered the third quarter with a cautious view of the economy and its impact on our markets. Revenue was weak, as expected, because consumers and corporations reduced their spending in this uncertain economy. Even so, the soundness of our strategic direction was underscored by results from our core businesses. Revenue for our Analog business was steady and revenue for our Embedded Processing business grew 9 percent compared with a year ago. Although not immune to near-term economic pressures, these are two of the best long-term opportunities in our industry,” said Rich Templeton, TI chairman, president and chief executive officer.
TI also announced plans to reduce expenses by about one-third, or more than $200 million annualized, in its Wireless business, especially in its cellular baseband operation. The company is also actively pursuing the sale of the merchant portion of this operation and is in discussions with potential buyers. In the custom portion of this operation, TI will continue to support select programs. TI will focus its remaining Wireless investments in OMAP applications processors, which are at the heart of many smartphone products.
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