Texas Instruments Inc. [1], symbol TXN on New York, is shifting its focus from digital chips for cellphones to faster-growing analog chips, which convert sound and images into digital signals that computers can understand.
We analyze Texas Instruments in Wall Street Stock Forecaster [2], our newsletter that recommends companies for investors who invest in stocks in the U.S. markets.
Revenue and earnings declined in the 2011 second quarter compared with a year earlier. This was mainly due to the disruption caused by the Japanese earthquake/tsunami in March. The earthquake reduced production at the company’s Japanese factories, and cost it $50 million to repair the damage.
As a result, revenue in the quarter fell 1.1%, to $3.46 billion from $3.5 billion. Earnings fell 12.6%, to $672 million from $769 million. Earnings per share fell 9.7%, to $0.56 from $0.62, on fewer shares outstanding.
The company still plans to buy rival analog chipmaker National Semiconductor Corp. (New York symbol NSM) for $6.5 billion in cash. The deal should close by the end of 2011. The latest quarterly earnings included $13 million of costs related to this purchase. Texas Instruments recently borrowed $4.7 billion to help pay for this acquisition.
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