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Texas Instruments' Q4 revenue is down 5% sequentially but up 20% from a year ago; GAAP loss of $0.34 per share due to investment write-downs

January 23, 2003

2 Min Read

DALLAS -- Texas Instruments Incorporated (NYSE: TXN - news) today reported fourth-quarter 2002 financial results in which revenue exceeded the company's previously revised outlook due to better-than- expected results for Semiconductor. TI's DSP and Analog revenue growth outpaced the market. Compared with a year ago, DSP grew 33 percent in the fourth quarter, and Analog grew 30 percent, as both product lines benefited from 57 percent growth in wireless revenue. Semiconductor revenue grew 4 percent sequentially and 26 percent compared with the year-ago period, driven by increased shipments in DSP and Analog. Educational & Productivity Solutions (E&PS) revenue grew 21 percent sequentially, due to higher seasonal back-to-school shipments of graphing calculators, and 1 percent compared with the year-ago period. Sensors & Controls revenue declined 6 percent sequentially and grew 7 percent compared with the year-ago period. In the fourth quarter, company revenue decreased 5 percent sequentially due to the seasonal decline in educational calculator shipments following the back-to-school retail period. Compared with the year-ago quarter, revenue increased 20 percent due to gains in Semiconductor revenue. Semiconductor revenue in the fourth quarter was even with the third quarter, and grew 22 percent compared with the year-ago period driven by strength in Analog and DSP. Educational & Productivity Solutions (E&PS) revenue fell 57 percent sequentially due to seasonality, but increased 3 percent compared with the year-ago period. Sensors & Controls revenue was about even sequentially. Compared with the year-ago period, Sensors & Controls revenue grew 10 percent primarily due to strength in sensor products for the automotive market. For 2002, company revenue grew 2 percent compared with 2001. Semiconductor revenue increased 2 percent, Sensors & Controls revenue was even with 2001, and E&PS revenue increased 6 percent. "TI's DSP revenue grew 30 percent for the year, more than twice as fast as the DSP market overall," said Tom Engibous, TI chairman, president and CEO. "This reflects our focus on markets with the best growth opportunities and the ability of TI's signal processing solutions to address those opportunities. Even in the anemic economic climate of the past year, TI's revenue growth from wireless communications and digital consumer electronics was strong. Overall inventory levels in the channels appeared to be in good shape as we ended the year. "In the fourth quarter, we increased our total cash position by $498 million, to more than $4 billion. Cash flow from operations in 2002 was nearly $2 billion, with free cash flow exceeding $1 billion," Engibous said. "TI used its financial strength to push ahead with strategic R&D that we believe further distances this company from its competitors. TI's OMAP platform for wireless communications is now shipping to major cell-phone and PDA manufacturers. Our new DSP-based Digital Media platform is enabling some of the world's most-popular consumer electronics devices, including digital cameras and camcorders as well as handheld multimedia jukeboxes that record, store and play digital audio and video." Texas Instruments Inc.

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