Texas Instruments quarterly revenue beats on automotive demand
(Reuters) - Chipmaker Texas Instruments Inc TXN.O reported higher-than-expected quarterly revenue, helped by strong demand for its analog and embedded chip products from the automotive and industrial markets.
Shares of the company were marginally lower in after-hours trading on Tuesday.
Texas Instruments, which counts Apple Inc (AAPL.O: Quote) among its largest customers, also forecast current-quarter profit of 78-88 cents per share and revenue of $3.17 billion-$3.43 billion.
Analysts on average were expecting a profit of 75 cents per share and revenue of $3.21 billion, according to Thomson Reuters I/B/E/S.
"From all accounts, the automotive industry at the end of the year was robust and Texas Instruments' numbers seem to reflect that," Loop Capital analyst Betsy Van Hees said.
The company also named Brian Crutcher, who joined the company in 1996, as its chief operating officer. Crutcher will oversee Texas Instruments' global technology and manufacturing operations in addition to its sales operations.
The Dallas-based company's analog chips are used to gauge changes in sound and temperature, while its embedded chip unit manufactures microcontrollers used in Internet of Things and personal devices.
Sensors used in factories, cars, shops and offices to help them operate more smartly on the industrial internet — or so-called Internet of Things — is a rapidly growing market.
Texas Instruments, often considered a barometer for the semiconductor industry, said revenue from its analog unit rose 10.5 percent to $2.29 billion. The business accounts for more than two-thirds of its total revenue. Continued...