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The BusinessWeek 50 Ranking

22

Texas Instruments

IT’S HARD NOT to love Texas Instruments these days. Nokia Corp. and other cell-phone makers, experiencing explosive growth in both established and developing markets, are buying its digital and analog chipsets in ever-increasing numbers. TI’s profits jumped 25% in 2005, and gross margins rose to 17.4%, compared with 14.8% a year ago. There’s even more room for the company to grow now, thanks to CEO Templeton’s plans to branch out into consumer electronics, with TI chips going into new gizmos such as the Slingbox streaming media server and giant TVs with digital-light-processing, or DLP, chips. Plus, the sale of the company’s Sensors & Control segment to Bain Capital should plop some $3 billion into TI’s coffers this year, which could go toward an acquisition or be used to continue its share buybacks. But after a long stretch of redhot sales, analysts predict that TI’s revenue growth will slow to a leisurely 3.1% in 2006, or $13.8 billion, before surging again in 2007. With demand running ahead of Wall Street’s expectations, though, those predictions may be conservative.

Company Info

2005 Rank

139

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COMPANY INFO

TXN

Market Value
$ Million

47,658.2

Total Return
$ Million
(1-yr.) 13.2
(3-yr.) 80.3
2005 Sales
$ Billion

13.4

Sales Growth
$ Million
(1-yr.) 6
(3-yr.) 18.0
Long-Term Growth Est. %

20.0

Net income
$ Million

2,324.0

Net Income Growth
$ Million
(1-yr.) 25
(3-yr.) 39.3
Net Margin %*

17.4

Return on Inv. Capital (%)*

18.9

Share Price
12-Mo. Hi/Lo

35/23

P/E Ratio

21

Industry Semiconductors & Semiconductor Equipment
CORPORATE WEB SITE
More in S&P 500 Companies Scoreboard >
*Trailing 12 months
Company data as of 2/28/06 provided by Standard & Poor's Compustat

Richard K. Templeton

Richard K. Templeton, 47

CEO since 2004




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