- Revenue
Expected between $3.36 Billion and $3.51 Billion
- EPS Expected
between $0.40 and $0.44
Conference
Call on TI Web Site at 4 p.m. CDT Today
www.ti.com
DALLAS (June 11, 2007) – In a scheduled update to its business outlook
for the second quarter of 2007, Texas Instruments Incorporated (TI) (NYSE:
TXN) today narrowed its expected ranges for revenue and earnings per share
(EPS).
The company’s expectations for revenue are:
- Total
revenue between $3.36 billion and $3.51 billion, compared with the prior
range of $3.32 billion to $3.60 billion;
- Semiconductor
revenue between $3.20 billion and $3.34 billion, compared with the prior
range of $3.14 billion to $3.40 billion; and
- Education
Technology revenue between $160 million and $170 million, compared with
the prior range of $180 million to $200 million. The lower estimate
reflects delays by retailers in stocking their back-to-school calculator
inventory until closer to the start of school in the third quarter.
TI expects
EPS from continuing operations between $0.40 and $0.44, compared with
the previous range of $0.39 to $0.45.
The company will hold a conference call at 4 p.m. CDT today to discuss
this update. This conference call will be available live at www.ti.com.
TI’s original second-quarter outlook was published in the company’s
first-quarter 2007 earnings release on April 23, available at www.ti.com.
TI’s second quarter ends on June 30.
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“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
our 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 TI or its management:
- Market demand for
semiconductors, particularly for analog chips and digital signal processors
in key markets such as communications, entertainment electronics and
computing;
- 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;
- Expiration of license
agreements between TI and its 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, manufacturing equipment, third-party
manufacturing services and manufacturing technology;
- Changes in the
tax rate applicable to TI as the 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 “Risk
Factors” in Item 1A of our most recent Form 10-K. The forward-looking
statements included in this release are made only as of the date of publication,
and we undertake 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 includes the Education Technology business.
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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