Below is transcript of the Texas Instruments Incorporated (NASDAQ:TXN)’s Fourth Quarter and Year-End 2014 Earnings Call, held on Monday, January 26, 2015, at 5:30 pm EST. Kingdom Ridge Capital, Wallace R. Weitz & Co. and Marque Millennium Capital was among Texas Instruments Incorporated (NASDAQ:TXN) shareholders at the end of the third quarter.
Texas Instruments Incorporated (NASDAQ:TXN) designs and makes semiconductors that the Company sells to electronics designers and manufacturers all over the world. The Company has four segments: Analog, Embedded Processing, Wireless and Other. The Company’s products, more than 100,000 orderable parts, are integrated circuits that are used to accomplish many different things, such as converting and amplifying signals, interfacing with other devices, managing and distributing power, processing data, canceling noise and improving signal resolution.
Dave Pahl – VP, Head of Investor Relations, Texas Instruments, Inc.
Kevin March – SVP & Chief Financial Officer, Texas Instruments, Inc.
Chris Danely – Citigroup
Ambrish Srivastava – BMO Capital Markets
John Pitzer – Credit Suisse
Harlan Sur – JPMorgan
Stacy Rasgon – Bernstein
Vivek Arya – Bank of America Merrill Lynch
Jim Covello – Goldman Sachs
Joe Moore – Morgan Stanley
Craig Ellis – B. Riley
Mark Lipacis – Jefferies
Timothy Arcuri – Cowen and Company
Doug Freedman – RBC Capital Markets.
Good day and welcome to the Texas Instrument Fourth Quarter 2014 and 2014 Year-End earnings conference call. At this time, I would like to turn the conference to Dave Pahl, please go ahead sir.
Dave Pahl, VP, Head of Investor Relations
Thank you and good afternoon and thank you for joining our fourth quarter and year-end 2014 earnings conference call. As usual Kevin March, TI’s Chief Financial Officer is with me today. For any of you who missed the release you can find it and relevant non-GAAP reconciliations on our web at ti.com/ir. This call is being broadcast live over the web and can be accessed through TI’s 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 safe harbor statement contained in the earnings released published today as well as TI’s most recent SEC filings for a more complete description.
Before I review the quarter, let me provide some information that is important to your calendar. We plan to hold a call on February 4th at 10 o’clock AM Central Time to update our capital management strategy. Similar to what we have done for the last two years on this topic, Kevin March will provide insight into our strategy and also answer some of the most frequently asked questions.
Turning to our earnings update, the fourth quarter marked another quarter of strong progress. Our core businesses of analog and embedded processing grew again with combined revenue of 13% from a year ago. Revenue of $3.27 billion came in at the middle of the expected range that we communicated to you in October. Earnings per share was $0.76 and included a $0.05 benefit for the reinstatement of the federal research tax credit and a $0.02 benefit from gains on sale of assets. Without these two items, our earnings would have been in the middle of our expected range.