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Strong Q1 showing for TI and Advanced Micro

Texas Instruments Inc's (TI) first-quarter profits more than tripled, matching Wall Street's expectations, as its revenue rose 34 percent due to strong semiconductor sales.

The company, which makes chips used in half the world's mobile phones, said it earned US$367 million, or US$0.21 per share, in the quarter, compared to US$117 million, or US$0.7 per share, a year earlier.

That met the forecast of analysts surveyed by Thomson First Call.

Revenue was US$2.94 billion compared to US$2.19 billion a year earlier.

Semiconductors, the bulk of TI's business, bucked the seasonal trend by rising 5 percent from the previous three months -- and 38 percent from a year ago -- due to strong sales for chips used in digital-television sets and projectors and analog chips used in a variety of consumer-electronics products.

In the company's key wireless business, however, revenue fell from the fourth quarter of last year. The company said that was partly due to a seasonal decline in mobile phone sales and lower demand from Nokia, its largest customer.

Chairman and chief executive Thomas Engibous said TI expects a strong year this year.

Engibous said the company accrued for employee profit sharing for the first time since 2000, and is increasing its planned capital expenditures and research and development.

Separately, Advanced Micro Devices Inc swung to a first-quarter profit as strong sales of flash-memory and computer processors boosted revenue by 73 percent.

The Sunnyvale-based chip manufacturer on Wednesday said Q1 net income was US$45.1 million, or US$0.12 a share, compared with a loss of US$146.4 million, or US$0.42 a share, last year.

It is the company's second consecutive quarterly profit. AMD's fourth quarter saw its first quarterly profit since the second quarter of 2001.
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