SAN FRANCISCO — Texas Instruments Inc. reported a second consecutive quarter of double digit year-over-year sales gains as continued strength in the automotive and industrial chip sectors continue to propel its business.
TI (Dallas) reported sales of $3.69 billion and a profit of $1.06 billion for the quarter, increases of 13 percent and 29 percent, respectively compared to the second quarter of 2016. The company said it expects sales for the third quarter to grow to between $3.74 billion to $4.06 billion, beating consensus analysts' forecasts.
"Demand for our products continues to be strong in the automotive market and continues to strengthen in the industrial market," said Dave Pahl, vice president and head of investor relations at TI, in a conference call with analysts following the second quarter report.
Dave Pahl
TI said its revenue from its analog segment increased by 18 percent year-over-year, largely due to growth in power and signal chain devices. The company reported that its embedded processor revenue, included connected microcontrollers and processors, grew by 15 percent year-over-year.
Sales of other products, including DLP products, calculators and custom ASICs, fell by $60 million compared with the second quarter of 2016, TI said.
"We continue to focus our strategy on the industrial and automotive markets, which are the end markets where we have been allocating our capital and driving initiatives," Pahl said. This, Pahl said, is driven by TI's "belief that industrial and automotive will be the fastest growing semiconductor markets due to their increasing semiconductor content and that they will provide diversity and longevity of products."
—Dylan McGrath is the editor-in-chief of EE Times.
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