Texas Instruments published second quarter earnings well after the bell on Monday.
The semiconductor maker reported a second quarter net income of $660 million with earnings of 59 cents per share (statement).
Non-GAAP earnings were 58 cents per share on a revenue of $3.047 billion, up six percent on a quarterly basis but down by nine percent annually.
Wall Street was looking for earnings of 41 cents per share on a revenue of $3.06 billion.
TI shares were initially up by 0.5 percent in after-hours trading once the report dropped around 1:30PM PT.
CEO Richard Templeton reflected on the quarter in prepared remarks:
Our balance sheet remains strong, with $3.2 billion of cash and short-term investments at the end of the quarter, 82 percent of which is owned by the company's U.S. entities, even after reducing debt by $500 million. Inventory days were 105, up from 101 a year ago, and consistent with our model of 105-115.
Numbers to know from TI's Q2:
- Analog and Embedded Processing now account for 78 percent of total revenue.
- Legacy wireless products declined to less than five percent of revenue. TI projected that to drop to below two percent in Q3.
- TI returned approximately $1 billion to shareholders through dividends and stock repurchases in Q2.
For the third quarter, Wall Street expects Texas Instruments to deliver earnings of 51 cents per share on a revenue of $3.2 billion.
TI responded with Q3 guidance of $3.09 billion to $3.35 billion in revenue with earnings of 49 to 57 cents per share.