Smart phone and tablet products officially winding down, revenues expected to decline appropriately
Texas Instruments is reporting its Q1 2013 earnings today, and the overall numbers are looking quite good. Although revenue for the quarter was down slightly, TI has posted net income and EPS that were near the top of their expected range. Here's a quick breakdown of the high points:
- $2.89 billion in revenues, down 8-percent year-over-year
- $362 million in net income, up 37-percent y-o-y
- $0.32 Earnings Per Share, up 45-percent y-o-y
- $3.9 billion in cash and short-term investments on hand
If it wasn't clear last year that TI is shifting away from the business of consumer chipset products, it should be after reading this earnings release. On its segmented earnings, TI has officially pushed its wireless business -- now dubbed "legacy wireless products" -- into the "Other" category of the sheet, which should give you an indication of where it is headed. Looking forward for Q2 2013 and beyond, TI is advising that its revenues will continue to decline in the legacy wireless business.
TI now says that a full 77-percent of its revenues come from "Analog and Embedded Processing", which means products aimed at the consumer space are far from the priority now. Aside from a cheap alternative to the more popular processors out there right now, don't look for OMAP processors to be making their way into too many products in the coming months.
Source: Texas Instruments