An overview of the financial highlights of Texas Instruments as well as well as recent activity.
There are many financial highlights of Texas Instruments to analyze for potential investors in the company. Texas Instrument stock had significantly declined within the past ten years. On March 3, 2000, Texas Instrument stock hit an all time high of $93.81. On December 3rd, 2010 it dropped to $32.86, a decrease of about 64%. Since the stock market crash in 2008, Texas Instruments has shown a steady increase in the price of common stock. After the crash, the price dropped to $14.35, and since then has increased by 56%. The common stock has had a 52-week high of $32.94, and a 52-week low of $22.28. The average daily volume of the stock is reported to be 13.71 million. This year, the company has used $600 million to purchase 24 million shares of common stock. $143 million in dividends were paid to Texas Instrument stockholders (TI financial report 3Q10). The average daily volume of common stock is 13,730,200. Earnings per share in the first quarter of 2010 were 53 cents. Earnings per share in the second quarter increased to 63 cents, and increased to 73 cents in the third.
Texas Instruments reported a $10,427,000,000 net income for 2009, which was a 16.6% decrease from the previous year of $12,501,000,000. Since 2006, the company has shown a steady decrease in net income. In the year 2000, Texas Instruments showed a total net income of $3,087,000,000, but had a negative net income the following two years. In 2003 the company showed a positive net income again. In the last 12 months, Texas Instruments has shown $13.4 billion in sales, and an income of $12.9 billion.
Over the past five years, total revenue of Texas Instrument has had a gradual decrease. From 2005-2009 total revenue has decreased by 17%. From 2005-2009 the company reported total revenues of $12,335 billion, $14,225 billion, $13,835 billion, $12,501 billion, and $10,427 billion respectively. Gross profit reflected the gross revenue, decreasing by about 17% as well. The net income for the company has decreased over the past five years as well. In 2005, a net income of $2,324 billion was reported, and only $1,470 billion was reported in 2009. The highest net income reported over the past five years was $4,285 billion(in 2006).
Total assets of Texas Instruments have declined over the past five years as well. In 2005, the company had $15,063 billion in assets. Since then, assets gradually decreased until 2008. From 2008 to 2009, the company reported an increase in assets by $196 billion (from $11,923 billion to $12,119 billion), a 1.6% increase. Total liabilities of the company have shown a gradual decrease since 2005, starting at $3,126 billion and decreasing to $2,397 billion in 2009. Total equity of the company has decreased as well over the past five years from $11,937 billion in 2005, to $9,722 in 2009 (MSN).
For the 2010 fiscal year, Texas Instruments seems to be doing rather well. For the 3rd quarter in 2010, the company has shown an increase in revenue by 7% ($3,496 million to $3,740 million). The company has also shown an increase in operating profit, net income, earnings per share, and cash flow from operations as well. From the 2nd to 3rd quarter in 2010, operating profit increased by 11% (from $1,107 billion to $1,227 billion). Net income increased by 12% (from $769 billion to $859 billion). Earnings per share (EPS) showed in increase by 15% (62 cents to 71 cents). Cash flow from operations increased by a total of 135% (from $562 billion to $1,318 billion).
From the second quarter of 2010, to the third quarter of 2010, revenue from "embedded processing" had an increase of 12% ($516 million to $575 million). Operating profit in "embedded processing" had a 39% increase ($115 million to $160 million). "Analog" revenue had an increase in 5% ($1,512 million to $1,581 million), and operating profit for "analog" increased by 10% ($472 million to $520 million). Revenue from "wireless" had an increase in 6% ($727 million to $767 million), and an increase in operating profit of 9% ($165 million to 180 million). Other Revenues increased by 10% ($741 million to $813 million), and operating profit increased by 3% ($355 million to $367 million).
Orders were $3.43 billion for the 3rd quarter for 2010, which was an increase from the previous year by 10%, but a decrease from the previous quarter by 8%. Inventory has increased by $308 million from the previous year, and reported a total of $1.42 billion in inventory at the end of the 3rd quarter (TI financial report 3Q10). The company reported $396 million in capital expenditures at the end of the 3rd quarter, which was an increase by $283 million from the previous quarter, and $226 million from the previous year.
Looking forward to the fourth quarter in 2010, Texas Instruments expects to have a total revenue to be somewhere between $3.36 million and $3.64 million. Texas instruments also projects earnings per share to be between 50 cents and 67 cents.
For the full year of 2010, Texas Instruments expects research and development expense to increase from $1.5 billion to $1.6 billion. The company expects to have a total of $1.2 billion in capital expenditures, and a total depreciation amount of $0.9 billion. Capital expenditures included an increase in assembly test capacity, as well as analog wafer fab capacity (3Q2010 conference call). The annual effective tax rate is 31% (TI Financial Report 3Q10). According to the 3Q10 financial report, the increase in revenues was due to the growth of all three major product areas, with a high growth from high performance analog products (Financial Report 3Q10).
On September 20, 2010 Texas Instruments reported $1,318,000,000 for cash provided by operating activities for the 3rd quarter in 2010. The company reported a $29 million decrease in accounts receivable, a $66 decrease in inventories, and a decrease in prepaid expenses and current assets for $15 million. Accounts payable and accrued expenses showed an increase of $201 million, and $23 million in income taxes payable. For the third quarter, the company also reported a depreciation of $213 million.
The reported amount for net cash used in investing activities was $662 million. This included $396 million in additions to plant and property equipment, $599 in short term investments, and $4 million in purchases of long-term investments. A gain of $373 million was reported for redemption and maturities of short-term investments, and a gain of $23 was reported for redemption of sales of long-term investments.
Net cash used in financing activities added up to $701 million for the third quarter of 2010. $41 million was used for sales and other common stock transaction, and $1 million was used for excess tax benefit from share-based payments. The company spent $600 million on stock repurchases and paid out $143 million in dividends.
Texas Instruments reported accounts payable for the third quarter of 2010 amounting to $623 million, with income taxes payable at $31 million, accrued expenses and other liabilities at $965 million, and accrued profit sharing/retirement at $219 million. The total current liabilities for the company amounted to $1,838 million. Underfunded retirement plans were $447 million, deferred credits and other liabilities were $320 million, and deferred income taxes were $82 million, bringing the total liabilities to $2,687 million.