Texas Instruments Inc has reported third-quarter results that beat Wall Street expectations of $1.14 per share. The Dallas- based company posted net income from continuing operations of $239m, or $0.60 per share – $1.20 before the reflection of a two- for-one split earlier this month – on revenue up 4% at $2.5bn, compared to a loss from continuing operations of $179m a year ago. The year-ago period includes a one-time acquisition charge of $192m. The improved results are largely credited to higher operating margins for semiconductors, led by ongoing strength in the area of digital signal processing and other differentiated semiconductors. TI’s operating margin increased to 14.3 percent in the quarter, up from 0.6 percent in the third quarter of 1996, excluding the one-time charge in last year’s quarter. Semiconductor margins were up more than 12 points from the year- ago level, and also up sequentially from the Q2. Actual net income was $1.71bn, against a net loss of $147m a year ago. Nine- month net was $2.09bn on revenue down 2.1% at $7.32bn, up from net income of $92m last year. Earnings per share were $4.28 for the quarter and $5.26 for the nine months. Results for the quarter include a gain of $1.47bn, or $3.68 per share, on the sale of the company’s defense operations to Raytheon Corp (CI No 3,202). Nine-month results include income of $1.53bn, or $3.84 per share, from discontinued operations, including the $1.47bn.
