TI profits surge

World's No.1 cell-phone chipmaker reports strong 2Q, boosts dividend and sales guidance.

July 25, 2005: 5:14 PM EDT

SAN FRANCISCO (Reuters) - Texas Instruments Inc., the world's biggest maker of mobile phone chips, on Monday posted a jump in its quarterly profit and said it planned to boost its dividends.

Net income for the Dallas-based company's second quarter grew to $628 million, or 38 cents per diluted share, compared with the year-earlier quarter's profit of $441 million, or 25 cents.

The latest quarter's results included 6 cents per share in tax-related gains. Analysts were expecting earnings per share, excluding gains, of 29 cents.

Revenue was flat compared with a year ago at $3.24 billion, but it was up 9 percent compared with the first quarter.

In early June, TI (Research) forecast revenue of between $3.12 billion and $3.24 billion. It had also forecast earnings per share of between 27 cents and 30 cents.

Analysts had forecast revenue of about $3.19 billion. Forecasts were in a range of $3.15 billion and $3.27 billion.

Shares of TI, which slipped slightly in regular trading on the New York Stock Exchange Monday, surged more than 4 percent in after-hours trading according to INET.