Efficiency drives earnings for TXN

Article Excerpt

TEXAS INSTRUMENTS INC. $70 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.0 billion; Market cap: $70.0 billion; Price-to-sales ratio: 5.4; Dividend yield: 2.2%; TSINetwork Rating: Average; www.ti.com) continues to benefit from its 2008 decision to quit making chips for cellular phones and focus instead on analog chips. Those products convert inputs like touch, sound and pressure into electronic signals that computers can understand. Manufacturers use them in a variety of products, including cars, cameras and appliances. Analog chips supply bulk of revenue As part of its new strategy, Texas Instruments paid $6.6 billion in September 2011 for National Semiconductor Corp. As a result, the company is now the world’s leading supplier of analog chips. In 2015, they accounted for 64% of its overall revenue. Texas Instruments gets a further 21% of its revenue from embedded processor chips, which perform mathematical calculations. The remaining 15% of its revenue comes from other chips, calculators and licensing its…