Texas Instruments Incorporated Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q2 2021 revenue was $4.6 billion, up 7% sequentially and 41% year-over-year. Growth was driven by strength in industrial, automotive, and personal electronics.
  • Analog revenue rose 6% sequentially and 42% year-over-year.
  • Embedded Processing revenue rose 2% sequentially and 43% year-over-year.
  • Other segment revenue grew 30% year-over-year.

End-Market Performance

  • Industrial: Up mid-teens sequentially and up ~40% year-over-year, with broad sector strength.
  • Automotive: Up low single digits sequentially; more than doubled from a weak pandemic-impacted year-ago period.
  • Personal Electronics: Flat sequentially; up ~25% year-over-year.
  • Communications Equipment: Up low single digits sequentially; down upper teens year-over-year.
  • Enterprise Systems: Up upper teens sequentially; flat year-over-year.

Operational Highlights

  • Lead times mostly stable; however, increased demand expanded the number of “hot spots” requiring extended lead times.
  • Capacity additions are underway: incremental expansions through 2021–H1 2022 and major support coming from RFAB2 in the second half of 2022.

Financial Performance

  • Gross profit: $3.1 billion (67% margin), up 290 basis points year-over-year.
  • Operating expenses: $816 million, up 5% year-over-year.

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Operator: Good day, and welcome to the Texas Instruments Q2 2021 Earnings Release Conference Call. Please note that today's call is being recorded. At this time, I would like to turn the conference over to Dave Pahl. Please go ahead. Dave Pahl: Good afternoon, and thank you for joining our second quarter 2021 earnings conference call. For any of you who missed the release, you can find it on our website at ti.com/ir. This call is being broadcast live over the web and can be accessed through our website. A replay will be available through the web. This call will include forward-looking statements that involve risks and uncertainties that could cause TI's results to differ materially from management's current expectations. We encourage you to review the notice regarding forward-looking statements contained in the earnings release published today, as well as TI's most recent SEC filings, for a more complete description. Our Chief Financial Officer, Rafael Lizardi, is with me today, and we'll provide the following updates. First, I'll start with a quick overview of the quarter. Next, I'll provide insight into second quarter revenue results, with more details than usual by end market, including some sequential performance since it's more informative at this time. And lastly, Rafael will cover the financial results, some insight into one-time items and our guidance for the third quarter of 2021. Starting with a quick overview of the second quarter. Revenue in the quarter was $4.6 b

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