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TI CEO
Tom Engibous Reconfirms Company Outlook in Keynote Remarks at Morgan Stanley
Investor Conference
CEO Says
Orders Stronger in First Two Months of 1Q02 and Could Drive Book-to-Bill
Close to One
DALLAS (March 4, 2002) -- During an evening keynote discussion at the
Morgan Stanley Semiconductor & Systems Conference, Texas Instruments
(TI) (NYSE:TXN) Chairman, President and CEO Tom Engibous reconfirms the
company's outlook for its current quarter. In its outlook, originally
issued in January, the company said it expects the following in 1Q02:
revenue to be about even with the fourth quarter of 2001, pro forma operating
margin to improve by about 7 points, and pro forma EPS to be about breakeven.
Additionally,
Engibous says that semiconductor orders received in the first two months
of the first quarter were strong, compared with the first two months of
the fourth quarter. As a result, the company's book-to-bill ratio could
be close to one for the first quarter. Engibous also says that if the
strength in orders continues, semiconductor revenue should grow sequentially
in the second quarter.
Engibous notes that TI has significant room for operating leverage on
its fixed manufacturing costs as capacity utilization improves. During
the downturn, the company reduced annualized costs by about $600 million,
while continuing to invest in more efficient manufacturing. As a result,
it expects revenue growth to fall through to the bottom line at a high
rate.
Engibous' keynote can be viewed through the Investor Relations section
of the TI Web site at www.ti.com/ir.
# # #
Pro
forma supplemental income information begins with the Consolidated Statement
of Operations, which complies with U.S. generally accepted accounting
principles, and then excludes amortization of acquisition-related costs
(goodwill, other intangibles and deferred compensation), pooling-of-interests
transaction costs, purchased in-process R&D costs, special charges
and gains, and income-tax adjustments.
Texas
Instruments
Texas Instruments Incorporated is the world leader in digital signal processing
and analog technologies, the semiconductor engines of the Internet age.
In addition to Semiconductor, the company's businesses include Sensors
& Controls, and Education Technology. TI is headquartered
in Dallas, Texas, and has manufacturing, design or sales operations in
more than 25 countries.
Texas Instruments
is traded on the New York Stock Exchange under the symbol TXN. The company's
web site is www.ti.com.
Safe Harbor
Statement
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This release includes "forward-looking statements"
intended to qualify for the safe harbor from liability established by
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements generally can be identified by phrases such as TI or its management
"believes," "expects," "anticipates," "foresees,"
"forecasts," "estimates" or other words or phrases
of similar import. Similarly, such statements herein that describe the
company's business strategy, outlook, objectives, plans, intentions or
goals also are forward-looking statements. All such forward-looking statements
are subject to certain risks and uncertainties that could cause actual
results to differ materially from those in forward-looking statements.
We urge you
to carefully consider the following important factors that could cause
actual results to differ materially from the expectations of the company
or its management:
- Market
demand for semiconductors, particularly for digital signal processors
and analog chips in key markets, such as telecommunications and computers;
- TI's ability
to develop, manufacture and market innovative products in a rapidly
changing technological environment;
- TI's ability
to compete in products and prices in an intensely competitive industry;
- TI's ability
to maintain and enforce a strong intellectual property portfolio and
obtain needed licenses from third parties;
- Timely
completion and successful integration of announced acquisitions;
- Economic,
social and political conditions in the countries in which TI, its customers
or its suppliers operate, including security risks, possible disruptions
in transportation networks and fluctuations in foreign currency exchange
rates;
- Losses
or curtailments of purchases from key customers or the timing of customer
inventory adjustments;
- TI's ability
to recruit and retain skilled personnel; and
- Availability
of raw materials and critical manufacturing equipment.
For a more
detailed discussion of these factors, see the text under the heading "Cautionary
Statements Regarding Future Results of Operations" in Item 1 of the
company's most recent Form 10-K. The forward-looking statements included
in this release are made only as of the date of this release and the company
undertakes no obligation to update the forward-looking statements to reflect
subsequent events or circumstances.
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