- Revenue
Expected between $3.560 Billion and $3.705 Billion
-
EPS Expected between $0.38 and $0.40 Including Stock Option Expense
Conference
Call on TI Web Site at 4 p.m. Central
Standard Time Today
DALLAS (Dec. 7, 2005) – In a scheduled update to its business outlook
for the fourth quarter of 2005, Texas Instruments Incorporated (TI) (NYSE:
TXN) today narrowed its expected ranges for revenue and earnings per share
(EPS). TI’s updated estimate reflects strong demand across a broad
range of its Semiconductor products.
The company’s expectations for revenue are:
- Total
revenue between $3.560 billion and $3.705 billion, compared with the
prior range of $3.425 billion to $3.715 billion;
- Semiconductor
revenue between $3.200 billion and $3.325 billion, compared with the
prior range of $3.075 billion to $3.325 billion;
- Sensors
& Controls revenue between $295 million and $305 million, compared
with the prior range of $290 million to $310 million; and
- Educational
& Productivity Solutions revenue between $65 million and $75 million,
compared with the prior range of $60 million to $80 million.
TI expects
EPS between $0.38 and $0.40, compared with the previous range of $0.36
to $0.40. Both the current and previous EPS ranges include the expensing
of employee stock options, which TI continues to expect to be $0.03 per
share.
The company will hold a conference call at 4 p.m. CST today to discuss
this update. This conference call will be available live at www.ti.com.
TI’s original fourth-quarter outlook was published in the company’s
third-quarter 2005 earnings release on Oct. 24, available at www.ti.com.
TI’s fourth quarter ends on Dec. 31.
###
“Safe
Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: This release includes forward-looking statements intended
to qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
generally can be identified by phrases such as TI or its management “believes,”
“expects,” “anticipates,” “foresees,”
“forecasts,” “estimates” or other words or phrases
of similar import. Similarly, statements in this release that describe
the company’s business strategy, outlook, objectives, plans, intentions
or goals also are forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those in forward-looking statements.
We
urge you to carefully consider the following important factors that could
cause actual results to differ materially from the expectations of the
company or its management:
- Market demand for
semiconductors, particularly for analog chips and digital signal processors
in key markets such as telecommunications and computers;
- TI’s ability
to maintain or improve profit margins, including its ability to utilize
its manufacturing facilities at sufficient levels to cover its fixed
operating costs, in an intensely competitive and cyclical industry;
- TI’s ability
to develop, manufacture and market innovative products in a rapidly
changing technological environment;
- TI’s ability
to compete in products and prices in an intensely competitive industry;
- TI’s ability
to maintain and enforce a strong intellectual property portfolio and
obtain needed licenses from third parties;
- Consolidation
of TI’s patent licensees and market conditions reducing royalty
payments to TI;
- Economic, social
and political conditions in the countries in which TI, its customers
or its suppliers operate, including security risks, health conditions,
possible disruptions in transportation networks and fluctuations in
foreign currency exchange rates;
- Natural events
such as severe weather and earthquakes in the locations in which TI,
its customers or its suppliers operate;
- Availability and
cost of raw materials, utilities and critical manufacturing equipment;
- Changes in the
tax rate applicable to TI as a result of changes in tax law, the jurisdictions
in which profits are determined to be earned and taxed, the outcome
of tax audits and the ability to realize deferred tax assets;
- Losses or curtailments
of purchases from key customers and the timing and amount of distributor
and other customer inventory adjustments;
- Customer demand
that differs from company forecasts;
- The financial
impact of inadequate or excess TI inventories to meet demand that differs
from projections;
- Product liability
or warranty claims, or recalls by TI customers for a product containing
a TI part;
- TI’s ability
to recruit and retain skilled personnel; and
- Timely implementation
of new manufacturing technologies, installation of manufacturing equipment,
and the ability to obtain needed third-party foundry and assembly/test
subcontract services.
For a more
detailed discussion of these factors, see the text under the heading “Cautionary
Statements Regarding Future Results of Operations” in Item 1 of
the company’s most recent Form 10-K. The forward-looking statements
included in this release are made only as of the date of publication,
and the company undertakes no obligation to update the forward-looking
statements to reflect subsequent events or circumstances.
Texas
Instruments Incorporated provides innovative DSP and analog technologies
to meet our customers’ real world signal processing requirements.
In addition to Semiconductor, the company’s businesses include Sensors
& Controls and Education Technology. TI is headquartered
in Dallas, Texas, and has manufacturing, design or sales operations in
more than 25 countries.
Texas
Instruments is traded on the New York Stock Exchange under the symbol
TXN. More information is located on the World Wide Web at www.ti.com.
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