TI Reports 4Q15, 2015 Financial Results

Texas Instruments (TI) reported fourth-quarter revenue of $3.19 billion, net income of $836 million and earnings per share of 80 cents. Earnings per share included 9 cents for two items that were not in the company’s prior guidance for the quarter.
 
“Revenue declined 2% from a year ago and was in line with our expectations, even though we experienced slowing demand within a sector of the personal electronics market late in the quarter,” said Rich Templeton, TI’s chairman, president and CEO. “Our combined core businesses of Analog and Embedded Processing performed well in the quarter and comprised 87% of fourth-quarter revenue.
 
“Gross margin of 58.5%, a new record, reflects the quality of our product portfolio as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production. Our cash flow from operations once again underscored the strength of our business model. Free cash flow for the trailing 12 months was up 6% from a year ago to $3.7 billion. This represents 28.6% of revenue, up from 26.9% a year ago, and is consistent with our targeted range of 20-30% of revenue.”