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Texas Instruments

Company

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Technologies of Texas Instruments are presented in a range of solutions and products - from cars to lighting instruments, from tablet computers to devices of home appliances, from the medical equipment to derricks.


Performance Indicators

2019: Revenue — $14.38 billion; profit — $5.02 billion

Revenue of Texas Instruments in 2019 was reduced to $14.38 from $15.78 billion the previous year. The main reason of recession is in decline in demand for the built-in solutions: their annual sales were reduced by 17% to $2.94 billion.

At the same time revenue and from sale of analog chips — decreased by 5% (from $10.8 billion in 2018 to $10.22 billion in the 2019th).

Revenue of Texas Instruments in 2019 was reduced to $14.38 from $15.78 billion the previous year
Revenue of Texas Instruments in 2019 was reduced to $14.38 from $15.78 billion the previous year

2019 the American semiconductor producer completed with the net profit in the amount of $5.02 billion against $5.58 billion profit locked according to the results of the 2018th.

The sales profit of analog microcircuits was reduced by 12% and reached $4.48 billion in 2019. In a segment of the built-in chips profit was reduced even stronger — by 25% to $907 million.

Judging by data from the financial report, the lion share of sales of Texas Instruments is brought by orders from producers of industrial equipment. Besides, the company is one of the largest suppliers of semiconductor solutions for the automotive industry. Unlike Intel and Qualcomm, the company does not make chips on which development hundreds of millions dollars leave and which quickly become outdated. Such business model does Texas Instruments less vulnerable to the sudden fluctuations in demand or pressure of competitors.

At the same time sales to the company it was reduced in every quarter 2019. Texas Instruments warned that decline in demand for chips can last some more quarters as growth of economy of China slows down, and producers face effects of the prolonged trade conflict between the USA and China.

In day of the publication of the reporting for 2019 stocks of Texas Instruments at first rose in price approximately for 2% to closing of the exchange, and at electronic biddings of quotation sank for 1.5% in spite of the fact that revenue and the profit of the company appeared above expectations of Wall Street.[1]

History

2018: Revenue — $15.78 billion; profit — $5.59 billion

2018 Texas Instruments completed with sales in the amount of $15.78 billion against $14.96 billion the previous year. The most part of business of the company is connected with production of the analog chips used, for example, for measurement of a sound, temperature, etc. with the subsequent translation of these data in a digital format.

Earned $10.8 billion at the end of 2018 from analog microcircuits of Texas Instruments that for 9% exceeds an indicator of year prescription.

Financial performance of Texas Instruments
Financial performance of Texas Instruments

Proceeds from sales of the built-in solutions which can be met in the systems of Internet of Things personal electronic devices, etc., in 2018 were $3.55 billion that is 2% more, than the previous year. Other businesses brought to the chipmaker in total $1.4 billion turnover.

The annual net profit of Texas Instruments was equal to $5.59 billion, and in the 2017th it made $3.61 billion. The profit of the company in a segment of analog products increased by 14% to $5.11 billion, and the sales profit of the built-in chips increased by 5% to $1.2 billion[2]

«
Demand in China was lower, than in other regions — the vice president and the director of investor relations in Texas Instruments  David Pahl in a conversation with analysts at the conference devoted to the publication of financial statements said. — Judging by signs which are shown by our clients, this weakness first of all is caused by the increased care because of intense trade relations.
»

The company also noted that orders from producers, especially in Celestial Empire, were low in 2018 whereas before demand was high thanks to deployment of networks of fifth generation (5G).

After the publication of financial results the share value of Texas Instruments practically did not change. In 2018 quotations sank for 9.5% after six years of growth.

2012: Texas Instruments leaves mobile business

The American company Texas Instruments (TI) announced in September, 2012 that it will reduce the investment volume into development and production of processors for the applications installed in smartphones and tablet computers Reuters reports. Processors for applications which TI releases under the OMAP brand are the devices based on ARM architecture intended for start on the mobile device of the software including the operating system, the graphical interface and mobile applications.

In February, 2011 TI announced OMAP processors of fifth generation - OMAP 5. So far the new family contains only two chips: OMAP5430 and OMAP5432. Both processors contain 4 main cores executed on 28-nanometer technology - on two cores of ARM Cortex-A15 MPCore and on two ARM Cortex-M4, - which are supplemented by the multinuclear graphic PowerVR SGX544-MPx controller.

Processors of Texas Instruments stand in a set of popular devices, including, for example, Amazon smartphone Samsung Kindle Fire HD, Barnes & Noble Nook Tablet and BlackBerry PlayBook, Galaxy Nexus tablets and a set smartphones of Motorola company. Instead of continuing to develop the direction of processors for mobile devices in the company made the decision to be focused on the built-in systems, including the electronic systems for cars. The supplier is under serious competitive pressure from other American company - Qualcomm, the market leader of mobile chips on supply rates (sells processors under the Snapdragon brand).

The Texas Instruments company is reoriented from release of processors for cell phones, tablets and other devices of wireless communication on the built-in systems. The staff of the company at the same time will be cut down on 1700 people. It is reported in November, 2012

The division which is engaged in chips for wireless communication sustains losses the third quarter in a row. In the last quarter it lost 53 million dollars whereas the same period of last year was complete with a profit of 78 million dollars. However sales volumes in this segment of the market were cut almost by half, claim in the company.

Notes