Demand lifts income for chip maker

NEW YORK - Texas Instruments second-quarter income and revenue jumped as demand continued to recover after the recession, the chip maker said yesterday.

The company predicted even better results in the new quarter.

TI said net income nearly tripled to US$769 million ($1.08 billion), or 62c a share, for the quarter that ended June 30.

That matched the average forecast of analysts polled by Thomson Reuters.

In the same period last year, TI earned US$260 million or 20c a share.

Revenue rose 42 per cent to US$3.5 billion, matching the average analyst forecast. It was US$2.46 billion in the same period last year.

For the third quarter, TI forecasts net income of 64c to 74c a share. Analysts have been expecting 64c. TI says revenue should be US$3.55 to $3.85 billion. Analysts put it at US$3.65 billion.

Dallas-based TI saw a deep slump in orders during the recession, dropping to its low in the first quarter of last year. With the second-quarter results, the company has recovered to pre-recession levels.

Investors were still displeased with the report, sending the stock down US$1.42, or 5.6 per cent, to US$24.13 in extended trading.

- AP