Sign in

    Texas Instruments Inc (TXN)

    You might also like

    Texas Instruments (TXN) designs and manufactures semiconductors, which are sold to electronics designers and manufacturers globally. The company operates primarily through two reportable segments: Analog and Embedded Processing, with additional activities reported under "Other" . Texas Instruments focuses on industrial and automotive markets, which together represented about 75% of its revenue in 2023 .

    1. Analog - Designs and produces semiconductors used to manage power and convert real-world signals into digital data, including Power and Signal Chain product lines.
      • Power - Manages power in electronic devices.
      • Signal Chain - Converts real-world signals into digital data.
    2. Embedded Processing - Develops microcontrollers, digital signal processors, and applications processors that serve as the digital "brains" of electronic equipment, particularly in industrial and automotive markets.
      • Microcontrollers - Provides control functions in electronic devices.
      • Digital Signal Processors - Processes digital signals for various applications.
      • Applications Processors - Powers complex applications in electronic devices.
    3. Other - Includes DLP® products, calculators, and custom ASIC products.
      • DLP® Products - Offers digital light processing technology.
      • Calculators - Manufactures calculators for educational and professional use.
      • Custom ASIC Products - Designs custom application-specific integrated circuits.
    NamePositionStart DateShort Bio
    Haviv IlanDirector, President, and Chief Executive Officer2023-04-01Haviv Ilan has been an employee of Texas Instruments for over 20 years, serving in senior roles since 2014. He became a director in 2021 and assumed the role of President and CEO on April 1, 2023 .
    Rafael R. LizardiSenior Vice President and Chief Financial OfficerN/ARafael R. Lizardi serves as the Senior Vice President and CFO of TXN. He has been an employee and executive officer of the company for more than five years .
    Ahmad S. BahaiSenior Vice President2018Ahmad S. Bahai is a Senior Vice President at TXN. He became an executive officer in 2018 and has been with the company for more than five years .
    Mark S. GarySenior Vice President2020Mark S. Gary is a Senior Vice President at TXN. He became an executive officer in 2020 and has been with the company for more than five years .
    Hagop H. KozanianSenior Vice President2018Hagop H. Kozanian is a Senior Vice President at TXN. He became an executive officer in 2018 and has been with the company for more than five years .
    Shanon J. LeonardSenior Vice President2022Shanon J. Leonard is a Senior Vice President at TXN. He became an executive officer in 2022 .
    Mark T. RobertsSenior Vice President2021Mark T. Roberts is a Senior Vice President at TXN. He became an executive officer in 2021 and has been with the company for more than five years .
    Amichai RonSenior Vice President2019Amichai Ron is a Senior Vice President at TXN. He became an executive officer in 2019 and has been with the company for more than five years .
    Richard K. TempletonDirector and Chairman of the Board2008Richard K. Templeton is a 40-year veteran of the semiconductor industry, having served 29 years at a senior level at TXN. He has been the company's Chairman since 2008 .
    Cynthia Hoff TrochuSenior Vice President, Secretary, and General CounselN/ACynthia Hoff Trochu serves as Senior Vice President, Secretary, and General Counsel at TXN. She has been an employee and executive officer of the company for more than five years .
    Christine A. WitzscheSenior Vice President2021Christine A. Witzsche is a Senior Vice President at TXN. She became an executive officer in 2021 .
    Mohammad YunusSenior Vice President2024Mohammad Yunus is a Senior Vice President at TXN. He became an executive officer in 2024 .
    Reginald DesRochesBoard of Directors Member2024-03-01Reginald DesRoches has been a member of the Board of Directors at TXN since March 1, 2024. He is also the President of Rice University since 2022 .
    1. With inventory levels reaching $4.3 billion and plans to further increase inventories despite moderating factory loadings, how do you intend to mitigate the risks of excess inventory amid cyclical uncertainty, and what impact might this have on your margins and cash flow?

    2. Embedded Processing revenue declined 27% year-over-year; can you elaborate on the specific strategies you're implementing to address this significant underperformance, and when do you anticipate seeing a turnaround in this segment?

    3. You've noted that while China has experienced strong sequential growth, other regions have not followed suit due to asynchronous market behaviors; what actions are you taking to stimulate demand recovery in non-Chinese markets, and when do you expect these markets to rebound?

    4. Considering that high inventory levels and low customer order visibility could lead to demand forecasting challenges, how are you managing production planning to prevent overproduction and potential inventory write-downs?

    5. Operating profit decreased by 18% compared to the same quarter last year, and net income similarly declined; what initiatives are in place to address these profitability concerns, and how do you plan to improve margins in light of declining revenues?

    Program DetailsProgram 1Program 2
    Approval DateSeptember 20, 2018 September 15, 2022
    End Date/DurationN/AN/A
    Total Additional Amount$12.0 billion $15.0 billion
    Remaining Authorization$5.80 billion $15.0 billion
    DetailsPart of $20.80 billion remaining from both authorizations combined Part of $20.80 billion remaining from both authorizations combined
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2024300Notes4.702.1% = (300 / 14,000) * 100
    2025750Notes1.3755.4% = (750 / 14,000) * 100
    2026500Notes1.1253.6% = (500 / 14,000) * 100
    2027650Notes4.604.6% = (650 / 14,000) * 100
    2027500Notes2.903.6% = (500 / 14,000) * 100
    2028700Notes4.605.0% = (700 / 14,000) * 100
    2029650Notes4.604.6% = (650 / 14,000) * 100
    2029750Notes2.255.4% = (750 / 14,000) * 100
    2030750Notes1.755.4% = (750 / 14,000) * 100
    2031500Notes1.903.6% = (500 / 14,000) * 100
    2032400Notes3.652.9% = (400 / 14,000) * 100
    2033950Notes4.906.8% = (950 / 14,000) * 100
    2034600Notes4.854.3% = (600 / 14,000) * 100
    2039750Notes3.8755.4% = (750 / 14,000) * 100
    20481,500Notes4.1510.7% = (1,500 / 14,000) * 100
    2051500Notes2.703.6% = (500 / 14,000) * 100
    2052300Notes4.102.1% = (300 / 14,000) * 100
    2053650Notes5.004.6% = (650 / 14,000) * 100
    2054750Notes5.155.4% = (750 / 14,000) * 100
    20631,550Notes5.0511.1% = (1,550 / 14,000) * 100
    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1952 PresentCurrent auditor

    Recent developments and announcements about TXN.

    Financial Reporting

      Earnings Call

      ·
      Jan 24, 2025, 12:02 AM

      Texas Instruments (TXN) recently released its earnings call transcript, providing insights into its Q4 2024 performance and forward guidance. Here are the key highlights:

      Revenue and Profit Performance

      • Q4 Revenue: $4 billion, a 3% sequential decline and 2% year-over-year decrease.
      • Segment Performance:
        • Analog revenue grew 2% year-over-year after eight quarters of decline.
        • Embedded Processing declined 18% year-over-year.
        • Other segments showed growth compared to the previous year.
      • Profitability:
        • Gross profit: $2.3 billion (58% of revenue), down due to lower revenue, higher depreciation, and reduced factory loadings.
        • Operating profit: $1.4 billion (34% of revenue), a 10% year-over-year decline.
        • Net income: $1.2 billion or $1.30 per share.

      Management’s Forward Guidance

      • Q1 2025 Outlook:
        • Revenue: $3.74 billion to $4.06 billion.
        • Earnings per share: $0.94 to $1.16.
        • Effective tax rate for 2025 expected to be about 12%.
      • Strategic Focus:
        • Continued investment in manufacturing and technology, broad product portfolio, and customer reach.
        • Emphasis on industrial and automotive markets, which made up 70% of 2024 revenue.

      Market Conditions and Strategic Initiatives

      • End Market Performance:
        • Industrial and automotive markets saw modest sequential declines in Q4, with industrial down low single digits and automotive down mid-single digits.
        • Personal electronics grew mid-single digits, while enterprise systems and communication equipment showed mixed results.
      • China Market:
        • Growth in automotive and personal electronics sectors, with overall business in China healthy and growing year-over-year.
      • Embedded Business Challenges:
        • Decline in margins due to underutilization of the Lehi factory (LFAB) and revenue drop.
        • Management remains optimistic about long-term growth and profitability in the embedded segment.

      Analyst Questions and Management Responses

      • Pricing Environment: No significant changes observed; pricing behavior has normalized to pre-COVID trends.
      • Inventory Management: Inventory levels increased to $4.5 billion, with further increases expected in Q1 2025.
      • Capital Management:
        • $1.2 billion in dividends paid and $537 million in stock repurchases in Q4 2024.
        • $1.6 billion in CHIPS Act funding awarded, with long-term benefits expected for manufacturing capacity.

      Key Takeaways

      • Texas Instruments is navigating a challenging market environment with strategic emphasis on industrial and automotive sectors.
      • While Q4 results showed declines in revenue and profit, management remains focused on long-term growth through disciplined capital allocation and investments in manufacturing capabilities.
      • Analysts raised concerns about embedded business margins and inventory levels, but management expressed confidence in their strategic direction and operational execution.

      This summary captures the main points from the earnings call, including financial performance, market conditions, and strategic initiatives.

      Earnings Report

      ·
      Jan 23, 2025, 9:32 PM

      Texas Instruments (TI) Q4 2024 Earnings Results

      Texas Instruments (Nasdaq: TXN) has released its Q4 2024 and full-year 2024 financial results as of January 23, 2025. Below are the key highlights:

      Q4 2024 Financial Performance

      • Revenue: $4.01 billion, a 2% decrease compared to Q4 2023.
      • Net Income: $1.21 billion, a 12% decrease year-over-year.
      • Earnings Per Share (EPS): $1.30, down 13% from $1.49 in Q4 2023. This includes a 2-cent benefit not included in prior guidance.

      Annual Financial Highlights (2024)

      • Revenue: $15.64 billion, a 10.7% decrease from $17.52 billion in 2023.
      • Net Income: $4.80 billion, down 26% from $6.51 billion in 2023.
      • Free Cash Flow: $1.5 billion, an 11% increase year-over-year, driven by reduced capital expenditures.

      Segment Performance

      • Analog: Revenue grew 2% in Q4 2024 to $3.17 billion, but annual revenue declined 7%.
      • Embedded Processing: Revenue fell 18% in Q4 2024 and 25% annually.
      • Other: Revenue increased 7% in Q4 2024 but declined 15% annually.

      Cash Flow and Shareholder Returns

      • Cash Flow from Operations: $6.3 billion for the trailing 12 months, down 2% year-over-year.
      • Capital Expenditures: $4.8 billion, a 5% decrease.
      • Dividends Paid: $4.8 billion, up 5%.
      • Stock Repurchases: $929 million, a 217% increase year-over-year.

      Outlook for Q1 2025

      • Revenue: Expected to range between $3.74 billion and $4.06 billion.
      • Earnings Per Share (EPS): Projected between $0.94 and $1.16.
      • Effective Tax Rate: Estimated at 12% for 2025.

      Key Trends and Observations

      • Sequential Revenue Decline: Revenue decreased 3% sequentially in Q4 2024, reflecting weaker demand in certain markets.
      • Strong Free Cash Flow: Despite lower revenue, free cash flow as a percentage of revenue improved to 9.6%, up from 7.7% in 2023, highlighting operational efficiency.
      • Increased Shareholder Returns: TI returned $5.7 billion to shareholders in the past 12 months, an 18% increase year-over-year.

      For more details, visit the TI Investor Relations website.