Texas Instruments Incorporated (TXN) has reported a 40.23 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $997 million, or $0.97 a share in the quarter, compared with $711 million, or $0.69 a share for the same period last year.
Revenue during the quarter grew 13.10 percent to $3,402 million from $3,008 million in the previous year period. Gross margin for the quarter expanded 222 basis points over the previous year period to 63.02 percent. Total expenses were 63.20 percent of quarterly revenues, down from 67.29 percent for the same period last year. This has led to an improvement of 409 basis points in operating margin to 36.80 percent.
Operating income for the quarter was $1,252 million, compared with $984 million in the previous year period.
For the second-quarter 2017, Texas Instruments Incorporated projects revenue to be in the range of $3,400 million to $3,700 million. The company forecasts diluted earnings per share to be in the range of $0.89 to $1.01.
Operating cash flow improves
Texas Instruments Incorporated has generated cash of $795 million from operating activities during the quarter, up 21.75 percent or $142 million, when compared with the last year period. Cash flow from investing activities was $267 million for the quarter, down 53.40 percent or $306 million, when compared with the last year period.
The company has spent $1,143 million cash to carry out financing activities during the quarter as against cash outgo of $945 million in the last year period.
Cash and cash equivalents stood at $1,073 million as on Mar. 31, 2017, down 16.24 percent or $208 million from $1,281 million on Mar. 31, 2016.
Working capital increases sharply
Texas Instruments Incorporated has recorded an increase in the working capital over the last year. It stood at $5,438 million as at Mar. 31, 2017, up 28.28 percent or $1,199 million from $4,239 million on Mar. 31, 2016. Current ratio was at 4.39 as on Mar. 31, 2017, up from 2.75 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 70 days for the quarter from 142 days for the last year period. Days sales outstanding went down to 33 days for the quarter compared with 37 days for the same period last year.
Days inventory outstanding has decreased to 66 days for the quarter compared with 135 days for the previous year period. At the same time, days payable outstanding was almost stable at 29 days for the quarter, when compared with the previous year period.
Debt comes down
Texas Instruments Incorporated has recorded a decline in total debt over the last one year. It stood at $3,358 million as on Mar. 31, 2017, down 18.46 percent or $760 million from $4,118 million on Mar. 31, 2016. Total debt was 21.02 percent of total assets as on Mar. 31, 2017, compared with 26.25 percent on Mar. 31, 2016. Debt to equity ratio was at 0.32 as on Mar. 31, 2017, down from 0.42 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
