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Texas Instruments, the biggest supplier of chips for mobile phones, raised its revenue and profit forecasts for the second quarter on Thursday, citing strong demand for a number of its products.

TI said sales should be in the range of $3.63bn to $3.78bn in the quarter to June 30. Its prior range had been $3.46bn-$3.75bn. Revenues for its main semiconductor business should be between $3.45bn and $3.59bn, up from $3.29bn-$3.56bn, it added. The company said it expected earnings per share of 46 to 48 cents, up from 38 to 43 cents.

The revenues estimate included a $70m cash payment from Conexant Systems for the settlement of patent litigation and a sales-tax benefit for the Dallas-based company coming as the result of an audit process with the state of Texas. The two items were expected to contribute 5 to 6 cents per share to profits. TI shares rose nearly 3 per cent in after-hours trading in New York to $31.60 on the news.

“The strength we are seeing is coming from a number of areas . . . we are, broadly-based, ahead of where we had expected,” said Ron Slaymaker, TI vice president.

He singled out the chips TI was making for DLP (Digital Light Processing) high-
definition television sets, wireless base station chips and low-power microcontrollers for remote metering.

Chips for mobile phones were “performing well, consistent with seasonal norms for the second quarter”.

Both third-generation high-end mobile phones and low-end mobiles were selling well, Mr Slaymaker said. TI and its customers were optimistic that the second half would be normal and consistent with expectations.

The Semiconductor Industry Association on Tuesday raised its forecasts for the year.

Copyright The Financial Times Limited 2017. All rights reserved.
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