InterDigital Inc (IDCC): TI cites umts: TI reported in-line re...

Reply Private New

Replies (1) Next 10 Prev Next

Send PM Follow Ignore

Followers	21
Posts	8337
Boards Moderated	0
Alias Born	01/07/2003

lastchoice

Re: None

Tuesday, 10/19/2004 9:02:04 AM

Tuesday, October 19, 2004 9:02:04 AM

TI cites umts:

TI reported in-line revenue. Texas Instruments (TXN, $21.09, Buy, covered by J.
Lau, target $24.00) reported 3Q04 sales of $3.25B, slightly above its revised
lower guidance of $3.10B - $3.24B, up 0.3% Q/Q and above consensus of $3.17B.
Semiconductor revenue was $2.79B, flat Q/Q but up 31% Y/Y. Wireless revenue
grew 5% Q/Q and 40% Y/Y due to strong demand The company stated that the
sequential growth was driven by its large OEM customers, partially offset by a
decline in wireless chipsets that were mostly sold into Asian ODMs and Chinese
local manufacturers. 3G UMTS modem products continued to be a significant
factor in wireless growth in 3Q04. The company guides (1) total revenue to be
in the range of $2.96B and $3.20B and (2) Semiconductor revenues to be in the
range of $2.63B to $2.83B. The company stated the inventory corrections have
continued into 4Q04. We view this news as in-line with other build data points.
We continue to maintain our global forecast and model 2004 wireless handset
units at 650M, with 3% sequential growth in 3Q followed by 11% in 4Q. TXN
supplies GSM handset chips to Nokia, Motorola (MOT, $18.72, Neutral, target
$17.00), Sony-Ericsson and other handset vendors. Nokia is TXN's biggest
customer, accounting for 14% of TXN's 2003 revenue.