- Texas Instruments’ revenue decreased seven per cent from the same quarter (Q1) a year ago
- The company returned $6.6 billion to owners in the past 12 months through stock repurchases and dividends
Texas Instruments Incorporated (TI) has reported first quarter 2020 revenue of $3.33 billion. Company’s net income stood at $1.17 billion during the same.
“Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.6 billion and 40% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production,” stated Rich Templeton, TI’s chairman, president and CEO.
COVID-19 recession
The company informed that taking in account the likely COVID-19 recession, it is using the 2008 financial crisis to model its second quarter outlook.
Templeton added, “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.
