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 19, 2009
TEXAS
INSTRUMENTS INCORPORATED
(Exact
name of registrant as specified in charter)
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DELAWARE
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001-03761
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75-0289970
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||
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(State
or other jurisdiction of incorporation)
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(Commission
file number)
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(I.R.S.
employer identification no.)
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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:
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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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 19, 2009, regarding its third quarter
2009 results of operations and financial condition is attached hereto as Exhibit
99 and is incorporated by reference herein.
ITEM
9.01. Exhibits
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Designation
of
Exhibit
in
this
Report
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Description
of Exhibit
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99
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Registrant’s
News Release
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Dated
October 19, 2009 (furnished pursuant to Item
2.02)
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“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:
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•
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Market
demand for semiconductors, particularly in key markets such as
communications, entertainment electronics and
computing;
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•
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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;
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•
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TI’s
ability to develop, manufacture and market innovative products in a
rapidly changing technological
environment;
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•
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TI’s
ability to compete in products and prices in an intensely competitive
industry;
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•
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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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•
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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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•
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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;
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•
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Natural
events such as severe weather and earthquakes in the locations in which
TI, its customers or its suppliers
operate;
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•
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Availability
and cost of raw materials, utilities, manufacturing equipment, third-party
manufacturing services and manufacturing
technology;
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•
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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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•
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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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•
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Customer
demand that differs from our
forecasts;
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•
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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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•
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The
ability of TI and its customers and suppliers to access their bank
accounts and lines of credit or otherwise access the capital
markets;
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•
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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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•
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TI’s
ability to recruit and retain skilled personnel;
and
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•
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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.
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For a
more detailed discussion of these factors, see Item 1A, “Risk Factors” in the
Company’s most recently filed Form 10-K. 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.
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TEXAS
INSTRUMENTS INCORPORATED
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|||
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Date:
October 19, 2009
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By:
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/s/ KEVIN P. MARCH
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Kevin
P. March
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Senior
Vice President
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and
Chief Financial Officer
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Exhibit
99
TI
reports financial results for 3Q09
Conference
call on TI web site at 4:30 p.m. Central time today
www.ti.com/ir
DALLAS
(Oct. 19, 2009) – Texas Instruments Incorporated (TI) (NYSE: TXN) today
announced third-quarter revenue of $2.88 billion, net income of $538 million and
earnings per share (EPS) of $0.42.
“Our
performance in the quarter exceeded our expectations and was led by a second
consecutive quarter of 20-percent growth in Analog,” said Rich Templeton, TI
chairman, president and CEO. “We are encouraged with the strong
sequential increase in demand for our products over the past two quarters as our
customers are winding down their inventory corrections and have begun to
increase production levels in their factories. This revenue growth,
combined with our early actions to pare costs so that we would not be dependent
upon an uncertain rebound in the overall economy, has resulted in solid
improvements in our profitability.
“Our
balance sheet is strong and has allowed us to opportunistically make investments
in Analog and Embedded Processing throughout this downturn that should provide
returns for years to come. For example, we are increasing our
investments in manufacturing capacity to support higher levels of growth,
including start-up of the world’s first facility to produce analog chips on
300-millimeter wafers. Applying advanced manufacturing technology to
analog at an attractive cost will give TI an opportunity to accelerate our
strategy and extend our leadership.
“Although
we still have much work to do, our progress has been good.”
3Q09 financial
summary
Amounts
are in millions of dollars, except per-share amounts.
| 3Q09 | 3Q08 |
vs. 3Q08
|
2Q09 |
vs. 2Q09
|
||||||||||||||||
|
Revenue:
|
$ | 2880 | $ | 3387 | -15 | % | $ | 2457 | 17 | % | ||||||||||
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Operating
profit:
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$ | 763 | $ | 746 | 2 | % | $ | 343 | 122 | % | ||||||||||
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Net
income:
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$ | 538 | $ | 563 | -4 | % | $ | 260 | 107 | % | ||||||||||
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Earnings
per share:
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$ | 0.42 | $ | 0.43 | -2 | % | $ | 0.20 | 110 | % | ||||||||||
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Cash
flow from operations:
|
$ | 834 | $ | 1046 | -20 | % | $ | 557 | 50 | % | ||||||||||
TI’s
revenue declined 15 percent compared with the third quarter of 2008 and
increased 17 percent compared with the second quarter of 2009. The
decline from a year ago was the result of declines across all segments,
particularly the Wireless segment. The increase from the prior
quarter was due to growth in all segments, particularly the Analog
segment.
Despite
revenue that was $507 million lower compared with the year-ago quarter, TI’s
operating profit grew $17 million primarily due to lower operating expenses, as
well as lower manufacturing costs. Operating profit increased $420
million compared with the second quarter primarily due to
higher revenue and the associated gross profit. Operating
profit increased from the prior quarter in all segments.
3Q09 segment
results
| 3Q09 | 3Q08 |
vs. 3Q08
|
2Q09 |
vs. 2Q09
|
Note
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|||||||||||||||||||
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Analog:
Revenue
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$ | 1184 | $ | 1289 | -8 | % | $ | 983 | 20 | % | (1) | |||||||||||||
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Operating profit
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$ | 306 | $ | 274 | 12 | % | $ | 96 | 219 | % | ||||||||||||||
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Embedded
Processing:
Revenue
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$ | 393 | $ | 427 | -8 | % | $ | 350 | 12 | % | (2) | |||||||||||||
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Operating profit
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$ | 75 | $ | 73 | 3 | % | $ | 28 | 168 | % | ||||||||||||||
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Wireless:
Revenue
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$ | 675 | $ | 915 | -26 | % | $ | 601 | 12 | % | (3) | |||||||||||||
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Operating profit
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$ | 110 | $ | 155 | -29 | % | $ | 58 | 90 | % | ||||||||||||||
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Other:
Revenue
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$ | 628 | $ | 756 | -17 | % | $ | 523 | 20 | % | (4) | |||||||||||||
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Operating profit
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$ | 272 | $ | 244 | 11 | % | $ | 161 | 69 | % | ||||||||||||||
The
product categories in each segment are as follows:
-
Analog: high-volume analog & logic, high-performance analog (includes data converters, amplifiers and interface products) and power management
-
Embedded Processing: DSPs and microcontrollers used in catalog, communications infrastructure and automotive applications
-
Wireless: DSPs and analog used in basebands for handsets, OMAP™ applications processors and connectivity products for wireless applications
-
Other: includes DLP® products, calculators, ASIC products, RISC microprocessors and royalties
|
(1)
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The
decline in Analog revenue from a year ago was due to lower high-volume
analog & logic and high-performance analog
revenue. Power management revenue increased
slightly. The increase in Analog revenue from the prior quarter was
due to growth in all three product
categories.
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(2)
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The
decline in Embedded Processing revenue from a year ago was due to lower
revenue from catalog, communications infrastructure and automotive
products. The increase in Embedded Processing revenue from the
prior quarter was primarily due to higher catalog product revenue, while
automotive product revenue grew by a lesser amount and communications
infrastructure product revenue was
even.
|
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(3)
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Wireless
revenue declined from a year ago due to lower baseband
revenue. Revenue from OMAP applications processors also
declined, although by a lesser amount, while revenue from connectivity
products increased. Wireless revenue increased from the prior
quarter primarily due to higher revenue from baseband products, and by a
lesser amount, increased revenue from connectivity products and OMAP
applications processors.
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(4)
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Other
revenue decreased from a year ago due to declines in RISC microprocessors,
DLP products, ASIC products, royalties and calculators. Other
revenue increased from the prior quarter due to a seasonal increase in
calculators, as well as higher revenue from DLP products, royalties and
ASIC products. Revenue from RISC microprocessors declined from
the prior quarter.
|
From a
year ago, operating profit increased in the Analog segment primarily due to
operating expense reductions, as well as higher gross
profit. Operating profit in the Embedded Processing and Other
segments increased due to operating expense reductions. Operating
profit in the Wireless segment declined due to lower gross profit, which was
partially offset by lower operating expenses.
Compared
with the prior quarter, operating profit increased in the Analog, Embedded
Processing and Other segments due to higher gross profit. Operating
profit increased in the Wireless segment primarily due to the combination of
higher gross profit and lower restructuring charges.
Restructuring
charges were as follows:
| 3Q09 | 3Q08 | 2Q09 | ||||||||||
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Analog:
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$ | 4 | $ | -- | $ | 35 | ||||||
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Embedded
Processing:
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$ | 2 | $ | -- | $ | 18 | ||||||
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Wireless:
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$ | 3 | $ | -- | $ | 23 | ||||||
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Other:
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$ | 1 | $ | -- | $ | 9 | ||||||
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Total:
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$ | 10 | $ | -- | $ | 85 |
3Q09 additional financial
information
|
Ÿ
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Orders
were $3.11 billion, down 4 percent from a year ago but up 11 percent
from the prior quarter.
|
|
Ÿ
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Inventory
was $1.12 billion, down $459 million from a year ago and up $53 million
from the prior quarter.
|
|
Ÿ
|
Capital
expenditures were $226 million in the quarter, an increase from $197
million in the year-ago quarter and an increase from $47 million in the
prior quarter.
|
|
Ÿ
|
TI
used $251 million in the quarter to repurchase 10.5 million shares of its
common stock and paid dividends of $138
million.
|
|
Ÿ
|
Cash
and cash equivalents plus short-term investments increased to $2.83
billion at the end of the quarter.
|
Outlook
For the
fourth quarter of 2009, TI expects:
|
Ÿ
|
Revenue: $2.78
– 3.02 billion
|
|
Ÿ
|
Earnings
per share: $0.42 – 0.50
|
The EPS
estimate includes a negative impact of $0.01 per share resulting from
restructuring charges.
TI will
update its fourth-quarter outlook on December 8, 2009.
For the
full year of 2009, TI expects approximately the following:
|
Ÿ
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R&D
expense: $1.5 billion
|
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Ÿ
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Capital
expenditures: $800 million, up from the prior expectation of
$300 million
|
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Ÿ
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Depreciation: $900
million
|
|
Ÿ
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Annual
effective tax rate: 28%, up from the prior expectation of
27%
|
TEXAS
INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated
Statements of Income
(Millions
of dollars, except share and per-share amounts)
|
For
Three Months Ended
|
||||||||||||
|
Sept. 30,
2009
|
Sept. 30, 2008
|
June
30, 2009
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||||||||||
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Revenue
|
$ | 2,880 | $ | 3,387 | $ | 2,457 | ||||||
|
Cost
of revenue
|
1,399 | 1,744 | 1,333 | |||||||||
|
Gross
profit
|
1,481 | 1,643 | 1,124 | |||||||||
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Research
and development (R&D)
|
368 | 507 | 369 | |||||||||
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Selling,
general and administrative (SG&A)
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340 | 390 | 327 | |||||||||
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Restructuring
expense
|
10 | -- | 85 | |||||||||
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Operating
profit
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763 | 746 | 343 | |||||||||
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Other
income (expense) net
|
2 | 10 | 13 | |||||||||
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Income
before income taxes
|
765 | 756 | 356 | |||||||||
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Provision
for income taxes
|
227 | 193 | 96 | |||||||||
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Net
income
|
$ | 538 | $ | 563 | $ | 260 | ||||||
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Earnings
per common share:
|
||||||||||||
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Basic
|
$ | .42 | $ | .43 | $ | .20 | ||||||
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Diluted
|
$ | .42 | $ | .43 | $ | .20 | ||||||
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Average
shares outstanding (millions):
|
||||||||||||
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Basic
|
1,255 | 1,304 | 1,267 | |||||||||
|
Diluted
|
1,268 | 1,315 | 1,272 | |||||||||
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Cash
dividends declared per share of common stock
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$ | .11 | $ | .10 | $ | .11 | ||||||
|
Percentage
of revenue:
|
||||||||||||
|
Gross
profit
|
51.4 | % | 48.5 | % | 45.7 | % | ||||||
|
R&D
|
12.7 | % | 15.0 | % | 15.0 | % | ||||||
|
SG&A
|
11.8 | % | 11.5 | % | 13.3 | % | ||||||
|
Operating
profit
|
26.5 | % | 22.0 | % | 14.0 | % | ||||||
TEXAS
INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated
Balance Sheets
(Millions
of dollars, except share amounts)
|
Sept. 30,
2009
|
Sept. 30, 2008
|
June
30, 2009
|
||||||||||
|
Assets
|
||||||||||||
|
Current
assets:
|
||||||||||||
|
Cash
and cash
equivalents
|
$ | 1,294 | $ | 1,715 | $ | 1,765 | ||||||
|
Short-term
investments
|
1,533 | 278 | 792 | |||||||||
|
Accounts
receivable, net of allowances of ($22), ($28) and ($23)
|
1,435 | 1,774 | 1,244 | |||||||||
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Raw
materials
|
89 | 103 | 81 | |||||||||
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Work
in
process
|
767 | 982 | 699 | |||||||||
|
Finished
goods
|
260 | 490 | 283 | |||||||||
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Inventories
|
1,116 | 1,575 | 1,063 | |||||||||
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Deferred
income
taxes
|
592 | 679 | 668 | |||||||||
|
Prepaid
expenses and other current
assets
|
168 | 191 | 208 | |||||||||
|
Total
current
assets
|
6,138 | 6,212 | 5,740 | |||||||||
|
Property,
plant and equipment at
cost
|
6,599 | 7,499 | 6,739 | |||||||||
|
Less
accumulated
depreciation
|
(3,654 | ) | (3,982 | ) | (3,799 | ) | ||||||
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Property,
plant and equipment,
net
|
2,945 | 3,517 | 2,940 | |||||||||
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Long-term
investments
|
627 | 717 | 632 | |||||||||
|
Goodwill
|
926 | 840 | 926 | |||||||||
|
Acquisition-related
intangibles
|
138 | 99 | 150 | |||||||||
|
Deferred
income
taxes
|
928 | 688 | 909 | |||||||||
|
Capitalized
software licenses,
net
|
124 | 202 | 140 | |||||||||
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Overfunded
retirement
plans
|
20 | 137 | 20 | |||||||||
|
Other
assets
|
57 | 54 | 53 | |||||||||
|
Total
assets
|
$ | 11,903 | $ | 12,466 | $ | 11,510 | ||||||
|
Liabilities
and Stockholders’ Equity
|
||||||||||||
|
Current
liabilities:
|
||||||||||||
|
Accounts
payable
|
$ | 467 | $ | 601 | $ | 421 | ||||||
|
Accrued
expenses and other
liabilities
|
959 | 976 | 931 | |||||||||
|
Income
taxes
payable
|
148 | 35 | 56 | |||||||||
|
Accrued
profit sharing and
retirement
|
88 | 126 | 60 | |||||||||
|
Total
current
liabilities
|
1,662 | 1,738 | 1,468 | |||||||||
|
Underfunded
retirement
plans
|
464 | 186 | 502 | |||||||||
|
Deferred
income
taxes
|
60 | 52 | 54 | |||||||||
|
Deferred
credits and other
liabilities
|
279 | 396 | 273 | |||||||||
|
Total
liabilities
|
2,465 | 2,372 | 2,297 | |||||||||
|
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, 2009 --
1,739,770,537; Sept. 30, 2008 -- 1,739,717,573; June 30, 2009 --
1,739,734,081
|
1,740 | 1,740 | 1,740 | |||||||||
|
Paid-in
capital
|
1,071 | 973 | 1,045 | |||||||||
|
Retained
earnings
|
21,562 | 21,204 | 21,163 | |||||||||
|
Less
treasury common stock at cost:
Shares: Sept. 30, 2009
-- 486,897,139; Sept. 30, 2008 -- 443,292,628; June 30, 2009 --
478,309,646
|
(14,257 | ) | (13,481 | ) | (14,061 | ) | ||||||
|
Accumulated
other comprehensive income (loss), net of taxes
|
(678 | ) | (342 | ) | (674 | ) | ||||||
|
Total
stockholders’ equity
|
9,438 | 10,094 | 9,213 | |||||||||
|
Total
liabilities and stockholders’
equity
|
$ | 11,903 | $ | 12,466 | $ | 11,510 | ||||||
TEXAS
INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(Millions
of dollars)
|
For
Three Months Ended
|
||||||||||||
|
Sept. 30,
2009
|
Sept.
30, 2008
|
June
30, 2009
|
||||||||||
|
Cash
flows from operating activities:
|
||||||||||||
|
Net
income
|
$ | 538 | $ | 563 | $ | 260 | ||||||
|
Adjustments
to net income:
|
||||||||||||
|
Depreciation
|
217 | 252 | 221 | |||||||||
|
Stock-based
compensation
|
46 | 53 | 47 | |||||||||
|
Amortization
of acquisition-related
intangibles
|
12 | 9 | 12 | |||||||||
|
Deferred
income
taxes
|
71 | (78 | ) | 6 | ||||||||
|
Increase
(decrease) from changes in:
|
||||||||||||
|
Accounts
receivable
|
(186 | ) | 36 | (116 | ) | |||||||
|
Inventories
|
(53 | ) | 76 | 37 | ||||||||
|
Prepaid
expenses and other current
assets
|
31 | 50 | (15 | ) | ||||||||
|
Accounts
payable and accrued
expenses
|
54 | (24 | ) | 101 | ||||||||
|
Income
taxes
payable
|
94 | 41 | (52 | ) | ||||||||
|
Accrued
profit sharing and
retirement
|
28 | 25 | 26 | |||||||||
|
Other
|
(18 | ) | 43 | 30 | ||||||||
|
Net
cash provided by operating
activities
|
834 | 1,046 | 557 | |||||||||
|
Cash
flows from investing activities:
|
||||||||||||
|
Additions
to property, plant and
equipment
|
(226 | ) | (197 | ) | (47 | ) | ||||||
|
Purchases
of short-term
investments
|
(879 | ) | -- | (343 | ) | |||||||
|
Sales
and maturities of short-term
investments
|
139 | 49 | 544 | |||||||||
|
Purchases
of long-term
investments
|
-- | (3 | ) | (3 | ) | |||||||
|
Redemptions
and sales of long term investments
|
16 | 32 | 43 | |||||||||
|
Acquisitions,
net of cash
acquired
|
-- | -- | (51 | ) | ||||||||
|
Net
cash (used in) provided by investing activities
|
(950 | ) | (119 | ) | 143 | |||||||
|
Cash
flows from financing activities:
|
||||||||||||
|
Dividends
paid
|
(138 | ) | (131 | ) | (139 | ) | ||||||
|
Sales
and other common stock
transactions
|
34 | 30 | 19 | |||||||||
|
Excess
tax benefit from share-based
payments
|
-- | 1 | -- | |||||||||
|
Stock
repurchases
|
(251 | ) | (429 | ) | (251 | ) | ||||||
|
Net
cash used in financing
activities
|
(355 | ) | (529 | ) | (371 | ) | ||||||
|
Net
(decrease) increase in cash and
cash equivalents
|
(471 | ) | 398 | 329 | ||||||||
|
Cash
and cash equivalents, beginning
of period
|
1,765 | 1,317 | 1,436 | |||||||||
|
Cash
and cash equivalents, end of
period
|
$ | 1,294 | $ | 1,715 | $ | 1,765 | ||||||
Certain
amounts in prior periods’ financial statements have been reclassified to conform
to the current presentation.
# # #
“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 herein 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;
|
|
·
|
The
ability of TI and its customers and suppliers to access their 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 Risk Factors discussion in
Item 1A of the Company's most recent Form 10-K. 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 design,
sales and manufacturing operations in more than 30 countries. For more
information, go to www.ti.com.
TI
trademarks:
OMAP
DLP
Other
trademarks are the property of their respective
owners.