Texas Instruments (TI) has reported a 13% decline in its fourth quarter revenue to $2.98bn compared to $3.4bn it reported during thecorresponding period last year.
The company’s net income declined 11% to $264m, or $0.23 diluted earnings per share, compared to $298m, or $0.25 diluted earnings per share, for the same period during the previous year.
Operating profit fell 62% to $139m for the quarter, compared to $365m for the same period in the corresponding year.
Revenue in the company’s analogue business fell 2% to $1.66bn while revenue in the embedded processing business grew 6% to $469m.
TI chairman, president and CEO Rich Templeton said the company continues to operate amidst weak demand and for the full year, the company’s free cash flow of $3bn grew 20%, representing 23% of revenues.
"We returned 90 percent of this free cash flow to our shareholders through our continued share repurchases and higher dividend payments," Templeton said.
"Our strong free cash flow is the result of more of our revenue coming from Analog and Embedded Processing, which offer solid growth and high margins and have low capital needs."
For the first quarter of 2013, TI expects its revenue to be in the range of $2.69 to 2.91bn and earnings per share in the range of $0.24 to $0.32.
In November 2012, TI revealed plans to cut about 1,700 jobs globally in order to reduce costs.