Texas Instruments Inc. (Nasdaq: TXN), the No. 2 U.S. chipmaker, reported better-than-expected third quarter net income Monday that rose 30 percent, but it warned of “weakness” ahead.
TI, based in Dallas, reported net income of $784 million, or 67 cents a share, compared with prior-year net income of $601 million, or 51 cents a share, as revenue eased 2 percent to $3.39 billion. Analysts had expected net income of only 46 cents a share, but earnings gained from one-time gains and changes in the pension program.
While CEO Rick Templeton hailed the performance, he warned the fourth quarter “will get weaker,” and the company forecast net income ranging between 23 cents and 31 cents a share on revenue between $2.83 billion and $3.07 billion, less than expected.
TI is a major supplier to the automotive, electronics, computer and wireless industry. Its semiconductor products are in the iPad from Apple (Nasdaq: AAPL), the world's most valuable technology company, and in most automobiles.
Shares of TI rose a quarter to $28.04 in after-hours trading.