TI Exceeds Earnings Expectations

Rallying at the last minute, the chip maker Monday posted second-quarter earnings that beat its lowered expectations.

Rallying at the last minute, chip maker Texas Instruments Inc. on Monday posted second-quarter earnings that beat its lowered expectations from a month ago.

The Dallas company posted a net income of $121 million, or seven cents a share, for the quarter. This compares with $95 million, or five cents a share, a year earlier.

Revenue was $2.34 billion, up from $2.16 billion for the year-ago quarter and $2.19 billion for the first quarter of 2002. This was a slightly higher sequential growth than the company had expected.

In June, TI lowered its expectations, blaming weak demand for wireless products in Asia because of the SARS outbreak.

But while there was a decline in wireless sales overall, sales in the last few days of June gave the company better-than-expected numbers, officials said.

"TIs revenue growth in the second quarter demonstrates the benefit of diversity in our products and markets as sequential growth across almost all of our major product lines more than offset a decline in wireless," said Tom Engibous, chairman, president and CEO of TI, in a prepared statement. "We believe TI continues to gain share in critical markets, including broadband communications, digital signal processing and analog."