- Share gains helped Texas Instruments' (NASDAQ:TXN) Q4 analog revenue rise 14% Y/Y to $2.1B (65% of total revenue); the division's op. profit rose 47% to $822M. Sales rose across all analog product lines, with power management ICs a strong point.
- Embedded processing revenue (DSPs, OMAP, microcontrollers, connectivity) rose 11% to $670M, with op. profit rising 178% to $114M. Everything else (DLPs, ASICs, calculators, royalties) fell 14% to $476M due to wireless and ASIC declines, but with op. profit rising 93% to $164M.
- Q1 guidance is for revenue of $3.07B-$3.33B and EPS of $0.57-$0.67, in-line with a consensus of $3.19B and $0.63.
- Q4 gross margin was 58%, -40 bps Q/Q but +380 bps Y/Y. Notably, R&D spend fell 10% Y/Y to $311M, and SG&A spend 7% to $429M.
- Free cash flow rose 18% in 2014 to $3.5B (27% of revenue and above net income of $2.8B). $698M was spent on buybacks in Q4, and $2.8B over the whole of 2014.
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TXN -0.2% AH to $54.95. Q4 results, PR.