Date: 24/04/2012

TI reports 9% sequential-fall in sales revenue for the 1st Quarter 2012

Leading Analog/mixed signal and DSP chipmaker Texas Instruments (TI) reported 1st Quarter 2012 revenue of US$3.12 billion, down by 9% sequentially and down by 8% compared to same quarter a year back.

TI has acquired another analog IC expert National Semiconductor in 2011 to strengthen its market hold on the precision analog IC market. TI's financial performance in the past few quarters is not impressive even after acquiring National Semiconductor. Though National's products could help TI to grow its Analog IC sales revenue (1686 Million US$) by 10% in 1Q2012 compared to 1Q2011, but the growth fallen by 1% compared to 4Q2011. The wireless segment is the badly hit area, which has drastically fell by 43% to US$374 Million in 1Q2012 from US$658 Million in 1Q2011 and US$722 Million in 4Q2011.
The microcontroller sales in 1Q2012 has helped TI with some positive figures: 473 Million in 1Q2012, grew by 7% compared 442 Million in 4Q2011.

The rest of the products such as MEMS based DLP, custom ASIC and calculators, what TI calls as 'others' is also grew by 5% to reach US$589 Million in 1Q2012 compared to US$562 Million in 4Q2011.

What is clear is TI-made DSP integrated SoC chips used in mobile phones are not the hot selling devices now and National Semiconductor acquisition still not given enough financial benefits to TI.

On the positive note TI's chairman Rich Templeton says TI's business cycle bottomed in the first quarter, and early signs of growth began to emerge. Orders were up 13 percent, he adds.