Conference call on TI website at 3:30 p.m. Central time today
DALLAS, April 21, 2020 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported first quarter revenue of $3.33 billion, net income of $1.17 billion and earnings per share of $1.24. Earnings per share include a 10-cent benefit for items that were not in the company's original guidance.Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman, president and CEO, made the following comments:
- "Revenue decreased 7% from the same quarter a year ago.
- "In our core businesses, Analog revenue declined 2% and Embedded Processing declined 18% from the same quarter a year ago.
- "Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.6 billion and 40% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
- "We have returned $6.6 billion to owners in the past 12 months through stock repurchases and dividends. Over the same period, our dividends represented 55% of free cash flow, underscoring their sustainability. Together, our stock repurchases and dividends reflect our continued commitment to return all free cash flow to our owners.
- "With a COVID-19 recession likely upon us, and with reduced visibility of customer demand, we are using the 2008 financial crisis to model our second quarter outlook. To reflect the increased uncertainty, we have expanded the range of our guidance. Therefore, TI's second quarter outlook is for revenue in the range of $2.61 billion to $3.19 billion, and earnings per share between $0.64 and $1.04, which includes an estimated $10 million discrete tax benefit. We expect our annual operating tax rate to be about 14% in 2020."
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
Amounts are in millions of dollars, except per-share amounts.
|
| Q1 2020 |
| Q1 2019 |
| Change | ||||
Revenue | $ | 3,329 |
|
| $ | 3,594 |
|
| (7)% |
Operating profit | $ | 1,244 |
|
| $ | 1,379 |
|
| (10)% |
Net income | $ | 1,174 |
|
| $ | 1,217 |
|
| (4)% |
Earnings per share | $ | 1.24 |
|
| $ | 1.26 |
|
| (2)% |
Cash generation
Amounts are in millions of dollars.
|
|
|
| Trailing 12 Months | ||||||||||
|
| Q1 2020 |
| Q1 2020 |
| Q1 2019 |
| Change | ||||||
Cash flow from operations | $ | 851 |
|
| $ | 6,393 |
|
| $ | 7,184 |
|
| (11)% |
| Capital expenditures | $ | 161 |
|
| $ | 757 |
|
| $ | 1,193 |
|
| (37)% |
| Free cash flow | $ | 690 |
|
| $ | 5,636 |
|
| $ | 5,991 |
|
| (6)% |
| Free cash flow % of revenue |
|
| 39.9% |
|
| 38.4% |
|
|
| ||||
