Texas Instruments quarterly earnings plunge

Texas Instruments' second-quarter profit for almost 75% from the year-ago period, an Associated Press report said.

The Associated Press report said shares of the Dallas-based company's stock down $1.28 to $36.90 in the after-hours session, down from the closing price of $38.18.

Net income for the current second quarter was $610 million down from $2.39 billion, the report said.

On an operating basis, Texas Instruments earned $739 million last year after excluding parts of the business it sold.

Revenue for the quarter ended June 30 was $3.42 billion, down from $3.7 billion in the year-ago period, because of weaker demand for a broad range of products, the report further said.

Company executives said TI remains poised for solid growth in the coming years on increasing demand for its high performance analog chips, which are used in cellular phones and a variety of other electronic gadgets, the report said.

Rich Templeton, TI's president and chief executive officer, repeated a prediction he first made during the company's annual analysts meeting in May: Gross profit margins, which were 52.1 % in the second quarter of 2007, would reach 55% in the next few years, the report further said.