- Texas Instruments had reported first quarter 2020 revenue of $3.33 billion
- It is using the 2008 financial crisis to model its second quarter outlook
Texas Instruments Incorporated (TI) has announced the pricing of $750 million of 1.750 per cent senior unsecured notes. These are due on fourth May 2030.
Citigroup Global Markets Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, and MUFG Securities Americas Inc. are serving as joint book-running managers for the offering. Senior notes are bonds that need be repaid before most other debts in the event that the issuer declares bankruptcy
“TI expects to use the net proceeds of this offering for general corporate purposes,” read company’s official statement.
2008 financial crisis to model its second quarter outlook
TI had reported first quarter 2020 revenue of $3.33 billion. It is using the 2008 financial crisis to model its second quarter outlook,
Company’s chairman, president and CEO Rich Templeton, said, “With a COVID-19 recession likely upon us, and with reduced visibility of customer demand, we are using the 2008 financial crisis to model our second quarter outlook. To reflect the increased uncertainty, we have expanded the range of our guidance.”
TI’s second quarter outlook is for revenue in the range of $2.61 billion to $3.19 billion, and earnings per share between $0.64 and $1.04, which includes an estimated $10 million discrete tax benefit.
The company returned $6.6 billion to owners in the past 12 months through stock repurchases and dividends. Over the same period, it’s dividends represented 55 per cent of free cash flow.
“Revenue decreased seven per cent from the same quarter a year ago. In our core businesses, analog revenue declined two per cent and embedded processing declined 18 per cent from the same quarter a year ago,” added Templeton.
