Texas Instruments has reported 2% decline in its revenue during the third quarter of 2012 (3Q12) to $3.39bn, due to falling chip demand, when compared to $3.46bn registered during the corresponding period in 2011.
The firm’s operating profit and net income increased 3% and 30% to $840m and $784m respectively during the quarter, as against $814m and $601m reported during 3Q11.
TI chairman, president and CEO Rich Templeton said TI revenue grew sequentially and operations were well executed even though the economy and semiconductor market remained weak and likely will get weaker in the fourth quarter.
"Our core businesses of Analog and Embedded Processing each grew revenue by 2 percent," Templeton said.
"Our operations were disciplined, with expenses and inventory levels both down, and our core businesses grew profit faster than revenue," added Templeton.
The firm has also reported a decline in orders for automotive clients in China and Europe and weak showing of the computer industry including peripheral products comprising printers, in addition to reduced wireless network equipment demand.
"In the third quarter, our free cash flow exceeded $1 billion, and we returned more than 75 percent of it through dividends and share repurchases," Templeton said.
The firm is also planning to cut down its production at its facilities, and in the next quarter, it is expected to be below the current quarter.