UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE
OF REPORT (DATE OF EARLIEST EVENT REPORTED): October 20, 2008
TEXAS
INSTRUMENTS INCORPORATED
(Exact
name of registrant as specified in charter)
|
DELAWARE
|
001-03761
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75-0289970
|
||
|
(State
or other jurisdiction of incorporation)
|
(Commission
file number)
|
(I.R.S.
employer identification no.)
|
12500
TI BOULEVARD
P.O.
BOX 660199
DALLAS,
TEXAS 75266-0199
(Address
of principal executive offices)
Registrant’s
telephone number, including area code: (972) 995-3773
Check the
appropriate box below if the Form 8-K is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following
provisions:
|
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
¨
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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ITEM
2.02. Results of Operations and Financial Condition
The
Registrant's news release dated October 20, 2008, regarding its third-quarter
2008 results of operations and financial condition is attached hereto as Exhibit
99 and is incorporated by reference herein.
ITEM 9.01.
Exhibits
|
Designation
of
Exhibit
in
this
Report
|
|
Description
of Exhibit
|
|
99
|
|
Registrant’s
News Release
|
|
|
Dated
October 20, 2008 (furnished pursuant to Item
2.02)
|
|
“Safe
Harbor” Statement under the Private Securities Litigation Reform Act of 1995:
This report includes forward-looking statements intended to qualify for the safe
harbor from liability established by the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally can be identified by
phrases such as TI or its management “believes,” “expects,” “anticipates,”
“foresees,” “forecasts,” “estimates” or other words or phrases of similar
import. Similarly, statements in this report that describe the Company’s
business strategy, outlook, objectives, plans, intentions or goals also are
forward-looking statements. All such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those in forward-looking statements.
We urge
you to carefully consider the following important factors that could cause
actual results to differ materially from the expectations of TI or its
management:
|
•
|
Market
demand for semiconductors, particularly in key markets such as
communications, entertainment electronics and
computing;
|
|
•
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TI’s
ability to maintain or improve profit margins, including its ability to
utilize its manufacturing facilities at sufficient levels to cover its
fixed operating costs, in an intensely competitive and cyclical
industry;
|
|
•
|
TI’s
ability to develop, manufacture and market innovative products in a
rapidly changing technological
environment;
|
|
•
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TI’s
ability to compete in products and prices in an intensely competitive
industry;
|
|
•
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TI’s
ability to maintain and enforce a strong intellectual property portfolio
and obtain needed licenses from third
parties;
|
|
•
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Expiration
of license agreements between TI and its patent licensees, and market
conditions reducing royalty payments to
TI;
|
|
•
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Economic,
social and political conditions in the countries in which TI, its
customers or its suppliers operate, including security risks, health
conditions, possible disruptions in transportation networks and
fluctuations in foreign currency exchange
rates;
|
|
•
|
Natural
events such as severe weather and earthquakes in the locations in which
TI, its customers or its suppliers
operate;
|
|
•
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Availability
and cost of raw materials, utilities, manufacturing equipment, third-party
manufacturing services and manufacturing
technology;
|
|
•
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Changes
in the tax rate applicable to TI as the result of changes in tax law, the
jurisdictions in which profits are determined to be earned and taxed, the
outcome of tax audits and the ability to realize deferred tax
assets;
|
|
•
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Losses
or curtailments of purchases from key customers and the timing and amount
of distributor and other customer inventory
adjustments;
|
|
•
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Customer
demand that differs from our
forecasts;
|
|
•
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The
financial impact of inadequate or excess TI inventory that results from
demand that differs from
projections;
|
|
•
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TI's
ability to access its bank accounts and lines of credit or otherwise
access the capital markets;
|
|
•
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Product
liability or warranty claims, claims based on epidemic or delivery failure
or recalls by TI customers for a product containing a TI
part;
|
|
•
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TI’s
ability to recruit and retain skilled personnel;
and
|
|
•
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Timely
implementation of new manufacturing technologies, installation of
manufacturing equipment and the ability to obtain needed third-party
foundry and assembly/test subcontract
services.
|
For a more detailed discussion of these factors, see the text under the heading “Risk Factors” in Part II, Item 1A of the Company’s Form 10-Q for the second quarter of 2008, which was filed on July 31, 2008. The forward-looking statements included in this report on Form 8-K are made only as of the date of this report, and the Company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
|
TEXAS
INSTRUMENTS INCORPORATED
|
|||
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Date:
October 20, 2008
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|
By:
|
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/s/
Kevin P. March
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Kevin
P. March
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||
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Senior
Vice President
|
||
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|
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and
Chief Financial Officer
|
||
Exhibit
99
TI
reports financial results for 3Q08
Conference
call on TI web site at 4:30 p.m. Central time today
www.ti.com/ir
DALLAS
(Oct. 20, 2008) – Texas Instruments Incorporated (TI) (NYSE: TXN) today
announced third-quarter revenue of $3.39 billion, net income of $563 million and
earnings per share of $0.43.
“We
entered the third quarter with a cautious view of the economy and its impact on
our markets. Revenue was weak, as expected, because consumers and
corporations reduced their spending in this uncertain economy,” said Rich
Templeton, TI chairman, president and chief executive officer.
“Even so,
the soundness of our strategic direction was underscored by results from our
core businesses. Revenue for our Analog business was steady and
revenue for our Embedded Processing business grew 9 percent compared with a year
ago. Although not immune to near-term economic pressures, these are
two of the best long-term opportunities in our industry. We are a
leader in each and expect to strengthen our position even in this period of
economic weakness.
“Our
outlook for the fourth quarter is for revenue to decline substantially based on
weak order trends over the past few months. In anticipation of
declining demand, we reduced our own inventory aggressively in the third
quarter, which brought factory utilization down and put additional pressure on
our profitability. We also worked closely with our distributors to
reduce the inventory in our channels. We will accelerate our
inventory reduction in the fourth quarter. We also will continue to
reduce expenses and capital spending. At the same time, we will
continue to invest in opportunities to strengthen our positions in Analog and
Embedded Processing.”
TI also
announced today it is taking actions that will reduce expenses by about
one-third, or more than $200 million annualized, in its Wireless business,
especially in its cellular baseband operation. The company is also
actively pursuing the sale of the merchant portion of this operation and is in
discussions with potential buyers. In the custom portion of this
operation, TI will continue to support select programs.
TI will
focus its remaining Wireless investments in OMAPTM
applications processors, which are at the heart of many of today’s most exciting
smartphone products.
“Smartphones are growing rapidly and
our handset customers are differentiating their product lines through
applications and user interfaces. We anticipated this opportunity and
have been investing in it for more than a decade. As a result, our
OMAP applications processors lead the market, and we will concentrate on
extending this lead,” Templeton said.
Reductions
in cellular baseband operations will begin immediately and are expected to be
complete by June 2009. The full annualized savings of more than $200
million will be achieved once these reductions are complete. The
company expects to take restructuring charges of approximately $110 million
across the next three quarters.
Financial
summary
Amounts
are in millions of dollars, except per-share amounts. Except as
noted, financial results are for continuing operations. The sale of
TI’s former Sensors & Controls business was completed on April 27, 2006, and
that business is reported as a discontinued operation.
| 3Q08 | 3Q07 |
vs. 3Q07
|
2Q08 |
vs. 2Q08
|
||||||||||||||||
|
Revenue:
|
$ | 3387 | $ | 3663 | -8% | $ | 3351 | 1% | ||||||||||||
|
Operating
profit:
|
$ | 746 | $ | 1013 | -26% | $ | 833 | -10% | ||||||||||||
|
Income:
|
$ | 563 | $ | 758 | -26% | $ | 588 | -4% | ||||||||||||
|
Earnings
per share:
|
$ | 0.43 | $ | 0.52 | -17% | $ | 0.44 | -2% | ||||||||||||
|
Cash
flow from operations:
|
$ | 1052 | $ | 1531 | -31% | $ | 520 |
102%
|
||||||||||||
Revenue
TI’s
revenue declined 8 percent compared with the third quarter of last year as
growth in Embedded Processing was more than offset by declines in Wireless and
Other revenue. Revenue was about even with the prior
quarter.
| 3Q08 | 3Q07 |
vs. 3Q07
|
2Q08 |
vs. 2Q08
|
Note
|
|||||||||||||||||||
|
Analog:
|
$ | 1289 | $ | 1308 | -1% | $ | 1287 | 0% | (1) | |||||||||||||||
|
Embedded
Processing:
|
$ |
427
|
$ |
390
|
9% | $ | 439 | -3% | (2) | |||||||||||||||
|
Wireless:
|
$ | 915 | $ | 1094 | -16% | $ | 902 | 1% | (3) | |||||||||||||||
|
Other:
|
$ | 756 | $ |
871
|
-13% | $ | 723 | 5% | (4)(5) | |||||||||||||||
Revenue
by product category for historical periods reflects minor reclassifications to
previously reported amounts.
The
product categories include:
-
Analog: high-performance analog, high-volume analog & logic
-
Embedded Processing: catalog, communications infrastructure and automotive DSPs and microcontrollers
-
Wireless: basebands, OMAP applications processors, connectivity products for handsets
-
Other: DLP® products, calculators, RISC microprocessors, ASIC products, royalties
|
(1)
|
Analog
revenue was about even with a year ago as growth in high-performance
analog was offset by declines in high-volume analog &
logic. Both areas were about even with the prior
quarter.
|
|
(2)
|
Embedded
Processing revenue grew from a year ago due to higher demand for
communications infrastructure products as well as catalog products that
more than offset a decline in automotive products. The
sequential decline was due to lower demand for catalog and automotive
products that more than offset growth in communications infrastructure
products.
|
|
(3)
|
Wireless
revenue declined from a year ago due to lower baseband
revenue. Wireless revenue was about even with the prior
quarter.
|
|
(4)
|
Other
revenue decreased from a year ago primarily due to declines in RISC
microprocessors, royalties and calculators. This comparison was
also impacted by the sale of a DSL product line, which had revenue of
about $40 million in the year-ago quarter. Compared with
the prior quarter, Other revenue grew due to growth in DLP and ASIC
products that more than offset a decline in
royalties.
|
|
(5)
|
Other
revenue includes Education Technology segment revenue of $182 million
compared with $202 million in the year-ago quarter and $176 million in the
prior quarter. Essentially all of this revenue is from sales of
calculators.
|
Additional financial
information
|
Ÿ
|
Income
includes a $34 million discrete tax benefit primarily due to adjustments
identified through the completion of prior years’ tax
returns. It also includes $44 million of charges
associated with impairments of long-lived assets and site
consolidations.
|
|
Ÿ
|
Orders
were $3.23 billion, down 9 percent from a year ago and down 7 percent from
the prior quarter.
|
|
Ÿ
|
Inventory
was reduced by $76 million in the quarter although it remains above the
company’s desired levels.
|
|
Ÿ
|
The
company used $429 million in the quarter to repurchase 17.1 million shares
of its common stock and paid dividends of $131
million.
|
Outlook
For the
fourth quarter of 2008, TI expects:
|
Ÿ
|
Revenue: $2.83
– 3.07 billion
|
|
Ÿ
|
Earnings
per share (EPS): $0.30 –
0.36
|
Semiconductor
revenue is expected to decline in the range of 10 percent from the third quarter
and Education Technology is expected to decline seasonally.
This EPS
estimate includes a $0.05 benefit from the reinstatement of the federal research
tax credit, which was signed into law in October 2008 and was retroactive to the
beginning of the year. The estimate also includes charges of about
$0.01 per share associated with the company’s restructuring actions in its
Wireless business.
TI will
update its fourth-quarter outlook on December 8, 2008.
For the
full year of 2008, TI expects approximately the following:
|
Ÿ
|
R&D
expense: $2.0 billion
|
|
Ÿ
|
Capital
expenditures: $0.8 billion, compared with $0.9 billion in the
prior estimate
|
|
Ÿ
|
Depreciation: $1.0
billion
|
|
Ÿ
|
Annual
effective tax rate: 28%*
|
* Includes
the full-year impact of the reinstatement of the federal research tax credit,
which reduces the annual effective tax rate by about 2 percentage
points.
TEXAS
INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated
Statements of Income
(Millions
of dollars, except share and per-share amounts)
|
For
Three Months Ended
|
||||||||||||
|
Sept.
30,
2008
|
Sept.
30,
2007
|
June
30,
2008
|
||||||||||
|
Revenue
|
$ | 3,387 | $ | 3,663 | $ | 3,351 | ||||||
|
Cost
of revenue
|
1,744 | 1,679 | 1,602 | |||||||||
|
Gross
profit
|
1,643 | 1,984 | 1,749 | |||||||||
|
Research
and development (R&D)
|
507 | 542 | 488 | |||||||||
|
Selling,
general and administrative (SG&A)
|
390 | 429 | 428 | |||||||||
|
Operating
profit
|
746 | 1,013 | 833 | |||||||||
|
Other
income (expense) net
|
10 | 53 | 17 | |||||||||
|
Income
from continuing operations before income taxes
|
756 | 1,066 | 850 | |||||||||
|
Provision
for income taxes
|
193 | 308 | 262 | |||||||||
|
Income
from continuing operations
|
563 | 758 | 588 | |||||||||
|
Income
from discontinued operations, net of taxes
|
-- | 18 | -- | |||||||||
|
Net
income
|
$ | 563 | $ | 776 | $ | 588 | ||||||
|
Basic
earnings per common share:
|
||||||||||||
|
Income from continuing
operations
|
$ | .43 | $ | .54 | $ | .45 | ||||||
|
Net income
|
$ | .43 | $ | .55 | $ | .45 | ||||||
|
Diluted
earnings per common share:
|
||||||||||||
|
Income from continuing
operations
|
$ | .43 | $ | .52 | $ | .44 | ||||||
|
Net income
|
$ | .43 | $ | .54 | $ | .44 | ||||||
|
Average
shares outstanding (millions):
|
||||||||||||
|
Basic
|
1,304 | 1,417 | 1,320 | |||||||||
|
Diluted
|
1,318 | 1,448 | 1,341 | |||||||||
|
Cash
dividends declared per share of common stock
|
$ | .10 | $ | .08 | $ | .10 | ||||||
|
Percentage
of revenue:
|
||||||||||||
|
Gross
profit
|
48.5 | % | 54.2 | % | 52.2 | % | ||||||
|
R&D
|
15.0 | % | 14.8 | % | 14.6 | % | ||||||
|
SG&A
|
11.5 | % | 11.7 | % | 12.8 | % | ||||||
|
Operating
profit
|
22.0 | % | 27.6 | % | 24.9 | % | ||||||
TEXAS
INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated
Balance Sheets
(Millions
of dollars, except share amounts)
|
Sept.
30,
2008
|
Sept.
30,
2007
|
June
30,
2008
|
||||||||||
|
Assets
|
||||||||||||
|
Current
assets:
|
||||||||||||
|
Cash and cash
equivalents
|
$ | 1,715 | $ | 807 | $ | 1,317 | ||||||
|
Short-term
investments
|
278 | 2,862 | 331 | |||||||||
|
Accounts
receivable, net of allowances of ($28), ($30) and ($24)
|
1,774 | 2,023 | 1,811 | |||||||||
|
Raw
materials
|
103 | 102 | 111 | |||||||||
|
Work in
process
|
982 | 934 | 997 | |||||||||
|
Finished
goods
|
490 | 414 | 543 | |||||||||
|
Inventories
|
1,575 | 1,450 | 1,651 | |||||||||
|
Deferred income
taxes
|
679 | 702 | 641 | |||||||||
|
Prepaid
expenses and other current assets
|
191 | 209 | 259 | |||||||||
|
Total current
assets
|
6,212 | 8,053 | 6,010 | |||||||||
|
Property, plant and equipment at
cost
|
7,499 | 7,597 | 7,603 | |||||||||
|
Less accumulated
depreciation
|
(3,982 | ) | (3,916 | ) | (3,999 | ) | ||||||
|
Property, plant and equipment,
net
|
3,517 | 3,681 | 3,604 | |||||||||
|
Long-term
investments
|
717 | 265 | 766 | |||||||||
|
Goodwill
|
840 | 796 | 840 | |||||||||
|
Acquisition-related
intangibles
|
99 | 108 | 108 | |||||||||
|
Deferred income
taxes
|
688 | 425 | 626 | |||||||||
|
Capitalized software licenses,
net
|
202 | 242 | 220 | |||||||||
|
Overfunded retirement
plans
|
137 | 77 | 128 | |||||||||
|
Other
assets
|
54 | 77 | 80 | |||||||||
|
Total
assets
|
$ | 12,466 | $ | 13,724 | $ | 12,382 | ||||||
|
Liabilities
and Stockholders’ Equity
|
||||||||||||
|
Current
liabilities:
|
||||||||||||
|
Accounts
payable
|
$ | 601 | $ | 644 | $ | 677 | ||||||
|
Accrued expenses and other
liabilities
|
976 | 1,092 | 955 | |||||||||
|
Income taxes
payable
|
35 | 152 | 26 | |||||||||
|
Accrued profit sharing and
retirement
|
126 | 143 | 102 | |||||||||
|
Total current
liabilities
|
1,738 | 2,031 | 1,760 | |||||||||
|
Underfunded retirement
plans
|
186 | 95 | 187 | |||||||||
|
Deferred income
taxes
|
52 | 27 | 57 | |||||||||
|
Deferred credits and other
liabilities
|
396 | 434 | 394 | |||||||||
|
Total
liabilities
|
2,372 | 2,587 | 2,398 | |||||||||
|
Stockholders’
equity:
|
||||||||||||
|
Preferred
stock, $25 par value. Authorized -- 10,000,000 shares.
Participating
cumulative preferred. None issued.
|
-- | -- | -- | |||||||||
|
Common
stock, $1 par value. Authorized -- 2,400,000,000
shares. Shares issued: Sept. 30, 2008
- --
1,739,717,573;
Sept. 30, 2007 -- 1,739,579,782; June 30, 2008 --
1,739,712,567
|
1,740 | 1,740 | 1,740 | |||||||||
|
Paid-in
capital
|
973 | 853 | 940 | |||||||||
|
Retained
earnings
|
21,204 | 19,172 | 20,773 | |||||||||
|
Less
treasury common stock at cost:
Shares: Sept. 30, 2008 --
443,292,628; Sept. 30, 2007 -- 341,373,012; June 30, 2008 --
428,835,142
|
(13,481 | ) | (10,344 | ) | (13,138 | ) | ||||||
|
Accumulated
other comprehensive loss, net of taxes
|
(342 | ) | (284 | ) | (331 | ) | ||||||
|
Total
stockholders’ equity
|
10,094 | 11,137 | 9,984 | |||||||||
|
Total
liabilities and stockholders’ equity
|
$ | 12,466 | $ | 13,724 | $ | 12,382 | ||||||
TEXAS
INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(Millions
of dollars)
|
For
Three Months Ended
|
||||||||||||
|
Sept.
30,
2008
|
Sept.
30,
2007
|
June
30,
2008
|
||||||||||
|
Cash
flows from operating activities:
|
||||||||||||
|
Net
income
|
$ | 563 | $ | 776 | $ | 588 | ||||||
|
Adjustments
to net income:
|
||||||||||||
|
Income from discontinued
operations
|
-- | (18 | ) | -- | ||||||||
|
Depreciation
|
252 | 262 | 245 | |||||||||
|
Stock-based
compensation
|
53 | 66 | 54 | |||||||||
|
Amortization of acquisition-related
intangibles
|
9 | 10 | 10 | |||||||||
|
Gain on sale of
assets
|
-- | (39 | ) | -- | ||||||||
|
Deferred income
taxes
|
(78 | ) | 36 | (7 | ) | |||||||
|
Increase
(decrease) from changes in:
|
||||||||||||
|
Accounts
receivable
|
36 | (117 | ) | (149 | ) | |||||||
|
Inventories
|
76 | (34 | ) | (73 | ) | |||||||
|
Prepaid expenses and other current
assets
|
50 | 24 | (29 | ) | ||||||||
|
Accounts payable and accrued
expenses
|
(24 | ) | 154 | 32 | ||||||||
|
Income taxes
payable
|
41 | 394 | (181 | ) | ||||||||
|
Accrued profit sharing and
retirement
|
25 | 45 | 23 | |||||||||
|
Other
|
49 | (28 | ) | 7 | ||||||||
|
Net
cash provided by operating activities of continuing
operations
|
1,052 | 1,531 | 520 | |||||||||
|
Cash
flows from investing activities:
|
||||||||||||
|
Additions
to property, plant and equipment
|
(197 | ) | (152 | ) | (271 | ) | ||||||
|
Proceeds from sales of
assets
|
-- | 61 | -- | |||||||||
|
Purchases of short-term
investments
|
-- | (1,916 | ) | -- | ||||||||
|
Sales
and maturities of short-term investments
|
49 | 1,374 | 111 | |||||||||
|
Purchases of long-term
investments
|
(3 | ) | (15 | ) | (3 | ) | ||||||
|
Sales of long-term
investments
|
32 | 4 | -- | |||||||||
|
Acquisitions, net of cash
acquired
|
-- | (4 | ) | (19 | ) | |||||||
|
Net
cash used in investing activities of continuing operations
|
(119 | ) | (648 | ) | (182 | ) | ||||||
|
Cash
flows from financing activities:
|
||||||||||||
|
Dividends
paid
|
(131 | ) | (114 | ) | (132 | ) | ||||||
|
Sales
and other common stock transactions
|
30 | 166 | 89 | |||||||||
|
Excess
tax benefit from share-based payments
|
1 | 16 | 3 | |||||||||
|
Stock
repurchases
|
(429 | ) | (1,409 | ) | (433 | ) | ||||||
|
Net
cash used in financing activities of continuing operations
|
(529 | ) | (1,341 | ) | (473 | ) | ||||||
|
Effect of exchange rate changes on
cash
|
(6 | ) | (1 | ) | 2 | |||||||
|
Net
increase (decrease) in cash and cash equivalents
|
398 | (459 | ) | (133 | ) | |||||||
|
Cash
and cash equivalents, beginning of period
|
1,317 | 1,266 | 1,450 | |||||||||
|
Cash
and cash equivalents, end of period
|
$ | 1,715 | $ | 807 | $ | 1,317 | ||||||
Certain
amounts in prior periods’ financial statements have been reclassified to conform
to the current presentation.
Safe
Harbor Statement
“Safe Harbor”
Statement under the Private Securities Litigation Reform Act of 1995: This
release includes forward-looking statements intended to qualify for the safe
harbor from liability established by the Private Securities Litigation Reform
Act of 1995. These forward-looking statements generally can be identified by
phrases such as TI or its management “believes,” “expects,” “anticipates,”
“foresees,” “forecasts,” “estimates” or other words or phrases of similar
import. Similarly, statements in this release that describe the Company’s
business strategy, outlook, objectives, plans, intentions or goals also are
forward-looking statements. All such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those in forward-looking statements.
We urge
you to carefully consider the following important factors that could cause
actual results to differ materially from the expectations of TI or its
management:
|
•
|
Market
demand for semiconductors, particularly in key markets such as
communications, entertainment electronics and
computing;
|
|
•
|
TI’s
ability to maintain or improve profit margins, including its ability to
utilize its manufacturing facilities at sufficient levels to cover its
fixed operating costs, in an intensely competitive and cyclical
industry;
|
|
•
|
TI’s
ability to develop, manufacture and market innovative products in a
rapidly changing technological
environment;
|
|
•
|
TI’s
ability to compete in products and prices in an intensely competitive
industry;
|
|
•
|
TI’s
ability to maintain and enforce a strong intellectual property portfolio
and obtain needed licenses from third
parties;
|
|
•
|
Expiration
of license agreements between TI and its patent licensees, and market
conditions reducing royalty payments to
TI;
|
|
•
|
Economic,
social and political conditions in the countries in which TI, its
customers or its suppliers operate, including security risks, health
conditions, possible disruptions in transportation networks and
fluctuations in foreign currency exchange
rates;
|
|
•
|
Natural
events such as severe weather and earthquakes in the locations in which
TI, its customers or its suppliers
operate;
|
|
•
|
Availability
and cost of raw materials, utilities, manufacturing equipment, third-party
manufacturing services and manufacturing
technology;
|
|
•
|
Changes
in the tax rate applicable to TI as the result of changes in tax law, the
jurisdictions in which profits are determined to be earned and taxed, the
outcome of tax audits and the ability to realize deferred tax
assets;
|
|
•
|
Losses
or curtailments of purchases from key customers and the timing and amount
of distributor and other customer inventory
adjustments;
|
|
•
|
Customer
demand that differs from our
forecasts;
|
|
•
|
The
financial impact of inadequate or excess TI inventory that results from
demand that differs from
projections;
|
|
•
|
TI's
ability to access its bank accounts and lines of credit or otherwise
access the capital markets;
|
|
•
|
Product
liability or warranty claims, claims based on epidemic or delivery failure
or recalls by TI customers for a product containing a TI
part;
|
|
•
|
TI’s
ability to recruit and retain skilled personnel;
and
|
|
•
|
Timely
implementation of new manufacturing technologies, installation of
manufacturing equipment and the ability to obtain needed third-party
foundry and assembly/test subcontract
services.
|
For a more detailed discussion of these factors, see the text under the heading “Risk Factors” in Part II, Item 1A of the Company’s Form 10-Q for the second quarter of 2008, which was filed on July 31, 2008. The forward-looking statements included in this release are made only as of the date of this release, and the Company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
About
Texas Instruments
Texas
Instruments (NYSE: TXN) helps customers solve problems and develop new
electronics that make the world smarter, healthier, safer, greener and more
fun. A global semiconductor company, TI innovates through
manufacturing, design and sales operations in more than 25 countries. For
more information, go to www.ti.com.
TI trademarks:
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DLP
Other
trademarks are the property of their respective owners.