Texas Instruments Inc., the biggest maker of semiconductors for mobile phones, on Tuesday posted a higher quarterly profit, fueled by strong demand for cellphones and its shares rose nearly 3 percent.
Chief Executive Rich Templeton said in a statement that demand was strong and he expected it to continue, citing particularly good growth in digital signal processors and analog semiconductors, which rose 32 percent and 24 percent, respectively, from the year-ago quarter.
Texas Instruments, which makes chips for everything from flat-panel televisions to calculators, said its first-quarter net income rose to $585 million, or 36 cents a share, from $411 million, or 24 cents a share a year earlier. The just-reported quarter includes 4 cents per share in stock-based compensation expense.
Revenue increased to $3.33 billion from $2.70 billion in the year-ago quarter.
Analysts had expected earnings of 33 cents a share on revenue of $3.29 billion, according to Reuters Estimates. TI last month forecast a profit from continuing operations of 31 cents to 33 cents a share, on revenue of $3.22 billion to $3.35 billion.
For the current second quarter, TI said it expects earnings per share from continuing operations of 38 cents per share to 43 cents per share, on revenue of $3.46 billion to $3.75 billion. TI’s per-share forecast includes about 4 cents for stock-based compensation expense.
Analysts currently expect TI to have a profit of 37 cents per share, on average, on revenue of $3.47 billion, according to Reuters Estimates.
TI has faced inventory shortages in recent months, raising concern among some investors that strong demand would outstrip its ability to keep up and deliver higher profits.
Texas Instruments shares have risen 48 percent in the last year based on Tuesday’s closing price due to strength in its wireless business. In the same period shares of wireless chip rival Qualcomm Inc have risen 58 percent.