More and more smartphones these days are beginning to ship with Texas Instruments’ processors these days but this may just be the beginning for the company in the mobile space. TI (TXN) announced its quarterly earnings today and beat expectations, even though the guidance given in the earnings call wasn’t as promising.
The company faces some stiff competition in the mobile spaces and will do battle with NVIDIA’s popular Tegra 2 dual-core CPU, the Exonys CPU found in Samsung’s Galaxy S 2, Qualcomm’s Snapdragon, and likely Apple’s A5 when the iPhone 5 finally lands. This isn’t to say the TI doesn’t stand a chance, as its multi-core processors are expected to be found in Motorola’s Droid Bionic and the upcoming LG Thrill 4G for AT&T.
The mobile space, even as robust as it is today, still has a lot of growth ahead of it and TI is looking to get in on the action with a sharper focus in the space.
The earnings report beat expectations but not by much. With a revenue of 3.64 billion, net-income of $672 million, and EPS of 56 cents, estimates were beaten, though modestly. The stock itself reflected that in after-hours trading, rising 1.18% but now currently sits at 0.10% up after hours.
Looking into the third quarter, the company could be facing a little trouble a head, though also modest.
“We expect growth in the third quarter, but because of mixed macroeconomic and market signals we are prepared for a broader-than-normal range of growth possibilities. We note that production at some computing and consumer manufacturers appears lukewarm even though we’re heading into the back-to-school and holiday seasons. At the same time, Asian distributor resales have been strong, demand from our Japanese customers is increasing and our backlog increased in the second quarter. We’ve planned for modest sequential growth in the third quarter, yet are prepared to support higher demand if it materializes.”
There’s more to TI than just mobile but since that’s what we’re into, we’re excited to see where the company will be in a few months from now.
Though only the uber-geeks out there will actually care, what CPU does the next smartphone you want have inside?
[Via: PRnewswire, Forbes]