TI revenue, profit down in 2Q

Texas Instruments Inc. said that lower demand across its product lines and a year-ago windfall produced a precipitous drop in profits in the second quarter.
TI earned revenue of $3.42 billion, down 7% from the year-ago quarter, on lower demand.
Net income at the Dallas-based semiconductor company was $610 million, down from $2.4 billion in the year-ago quarter. Last year, TI sold its sensors business to private equity investors for $1.65 billion, received a $70 million royalty payment and a $57 million sales tax refund. No such one-time windfalls took place in the second quarter. The company’s stock sagged more than 4% Tuesday on the news.
TI said it expects revenue in the third quarter to reach $3.49 billion to $3.79 billion. The company said it would provide additional guidance on the third quarter, now underway, during a Sept. 11 conference call.
According to iSuppli Corp., which tracks component sales, Qualcomm Inc. grabbed the top semiconductor ranking in the first quarter based on revenue, a spot usually maintained by TI. Qualcomm reports its earnings this afternoon.