Dallas, October 21st / PRNewswire / -- Texas Instruments Incorporated ( Texas Instruments Incorporated , TI , NASDAQ ticker: TXN ) announced today that its revenue for the third quarter was $6.06 billion, with a net profit of $2.43 billion and earnings per share of $2.62. The earnings per share figure includes a reduction of 1 cent, which was not included in the company's initial guidance.

Regarding the company's performance and returns to shareholders, TI Chairman, President, and Chief Executive Officer Haviv Ilan made the following statement:

• Revenue increased by 11% compared to the previous quarter and by 28% compared to the same period last year. The industrial, automotive, and data center businesses continued to experience broad growth.
• Over the past 12 months, our cash flow from operating activities reached $9.9 billion, once again highlighting the strength of our business model, the quality of our product portfolio, and the benefits brought by a production capacity of 300 millimeters. During the same period, free cash flow was $8.4 billion.
• Over the past 12 months, we have invested $4 billion in research and development, sales, general and administrative expenses, $2.6 billion in capital expenditures, and returned $5.8 billion to our owners.
• " TI expects revenue to range from $5.8 billion to $6.3 billion in the fourth quarter, with earnings per share ranging from $2.45 to $2.79."

Free cash flow is a non-GAAP financial indicator, which refers to the cash flow from operating activities minus capital expenditures, plus the benefits brought by the incentives of the U.S. Chip and Science Act (CHIPS Act).

The press release also mentions free cash flow and ratios based on this indicator. These financial indicators are not prepared in accordance with GAAP. The method for calculating free cash flow is to subtract capital expenditures from cash flows from operating activities, and then add the benefits brought by CHIPS Act incentive measures.

The company stated that free cash flow and related ratios are helpful in understanding the company's liquidity, cash generation capability, and the potential amount of cash that can be used to reward shareholders. They also assist in assessing the company's financial performance. These non-GAAP indicators complement the comparable GAAP indicators. The adjustments between these indicators and the most directly comparable GAAP indicators are shown in the table below.

The press release also mentioned operating tax, which is a non-GAAP term used to describe a tax item calculated based on the estimated annual effective tax rate. This estimated annual effective tax rate is part of the GAAP indicator and, by definition, does not include individual tax items. The company stated that operating tax helps to distinguish it from the effective tax rate, which includes individual tax items.

Explanation of Forward-Looking Statements

This press release contains forward-looking statements that comply with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can typically be identified by phrases such as “believes,” “expects,” “anticipates,” “foresees,” “predicts,” “estimates,” and similar expressions used by TI or its management. Similarly, statements in this text that describe TI's business strategy, outlook, objectives, plans, intentions, or goals are also considered forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties, and actual results may differ significantly from those stated in these forward-looking statements.

The company notes that the following important factors may lead to significant differences between the actual results and those anticipated by TI or management:

• Economic, social, and political conditions of the countries/regions where the company, customers, or suppliers are located, as well as natural events, including global trade policies;
• The company's ability to compete in a highly competitive industry through its products and pricing;
• Semiconductor market demand, especially in the industrial and automotive sectors, as well as customer demands that differ from forecasts;
• The timing and extent of reduced or ceased procurement by major customers, or adjustments to customer inventory;
• Cybersecurity and other threats related to the company's information technology systems, as well as those associated with customers, suppliers, and other third-party systems, are constantly evolving;
• The company's ability to successfully implement and realize strategic, business, and organizational change opportunities, or the ability to achieve the expected savings in related reorganization expenses and costs;
• The company's ability to develop, manufacture, and sell innovative products, as well as its capability to promptly implement new manufacturing technologies and install manufacturing equipment in a rapidly changing technological environment, and to achieve the expected returns on significant capacity investments;
• Supply and costs of key materials, utilities, manufacturing equipment, third-party manufacturing services, and manufacturing technologies;
• The company's ability to retain, train, and recruit skilled employees, as well as to effectively manage the succession of key employees;
• Product liability, warranties, or other claims related to the company's products, software, manufacturing, delivery, services, design, or communications; or recalls initiated by customers due to products containing the company's components;
• Financial difficulties of distributors, or semiconductor distributors promoting competing product lines that harm the company's interests; or disputes with existing or former distributors;
• The company's ability to maintain or improve profit margins, including in highly competitive and cyclical industries as well as in a constantly changing regulatory environment, involves keeping the utilization rate of manufacturing facilities at a level sufficient to cover fixed operating costs;
• Compliance with complex laws, regulations, and rules, or actions by law enforcement agencies, which may limit a company's ability to conduct business, or expose the company to fines, penalties, or other legal liabilities;
• The impact of changes in tax laws and accounting standards on the applicable tax rates for companies, the determination of where profits are earned and taxes are paid in various jurisdictions, adverse results of tax audits, increases in tariff rates, and the ability to generate deferred tax assets;
• The company's ability to maintain and enforce a strong portfolio of intellectual property rights and to preserve operational freedom in all jurisdictions where it operates may be at risk due to claims of infringement;
• The company's ability to pay off debt principal and interest on time;
• Instability in global credit and financial markets;
• Impairment of non-financial assets.

For a more detailed discussion of these factors, please refer to the Risk Factors section in Item 1A of the company's most recent 10-K report. The forward-looking statements in this press release are only valid as of the date of issuance, and the company assumes no obligation to update such forward-looking statements due to subsequent events or circumstances. Even if the company updates any forward-looking statements, it should not be inferred that there will be further updates to those statements or other forward-looking statements.

About Texas Instruments

Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures, and sells analog and embedded processing chips, serving markets such as industrial, automotive, data centers, personal electronics, and communication devices. The company states that its core mission is to make electronic products more affordable through semiconductors, thereby creating a better world. As generation after generation of innovation builds upon the previous one, this mission continues to this day, making technology more reliable, more affordable, with lower power consumption, and enabling semiconductors to be integrated into ubiquitous electronic products. For more information, please visit TI.com.

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