Through TheFLY's Eyes: Texas Instruments Incorporated

from Theflyonthewall.com









Selling Excellent Products To Excellent Customers

Texas Instruments (TXN) reported strong results on strong margins. Driving the business is outstanding chips being sold to Motorola (MOT), Nokia (NOK) and Samsung - The Big 3 of the wireless phone business. As these three giants get more market share, TI gets more market share. Essentially creating a virtuous cycle.

* Revenue up 11% sequentially and 24% year over year, very strong results.
* The semi businesses remain very strong, with 7% sequential growth and TI is forecasting 7% to 9% sequential growth for the 3rd quarter.
* Margins should continue to improve with more revenue coming from higher end products.
* Margins also should improve as depreciation goes down. This points to very good return on investment from TI's products.

The wireless industry is looking more and more like the PC business of the 1990s which made big returns for investors. As the industry consolidates with Motorola, Nokia and Samsung getting more and more market share, this benefits TI which is the primary supplier of chips for these companies.
TI's competitive position continues to improve making it a must-own stock for investors in this high-growth industry.