On October 25th TI reported third-quarter income of $2.47 a share on revenue of $5.24 billion and net income of $2.3 billion. Earnings per share included a gain of 2 cents on items outside the company's original guidance.
Rich Templeton, Chairman, President and Chief Executive Officer of TI, made the following comments regarding the company's results and shareholder returns: "Operating income increased 1% sequentially and 13% over the same period last year, in line with the company's expectations. During the quarter, we experienced anticipated weakness in personal electronics and extended weakness in the industrial sector." "Free cash flow for the same period was $5.9 billion, or 29 percent of revenue. "This reflects the quality of our product portfolio and our effective production strategy, which has led to the profitability of our 300mm fab."
Over the past 12 months, TI invested $3.3 billion in R&D and selling and overhead expenses, $3.1 billion in capital expenditures, and $7.1 billion in shareholder returns. Ti's fourth-quarter outlook calls for operating income between $4.4 billion and $4.8 billion, earnings per share between $1.83 and $2.11, and the company expects its effective tax rate for 2022 to be about 14%.
Today, the company announced that it has begun preliminary production at its newest 300mm wafer fab in Richardson, Texas, which will be ramped up over the next few months to support future growth in electronics semiconductors. RFAB2 is connected to RFAB1, which opened in 2009 as the world's first 300mm analog wafer fab and is one of six additional 300mm fabs the company has added to its manufacturing operations.
"The start of production of our newest and largest 300mm fab is part of our long-term investment to expand our in-house manufacturing capabilities," said Kyle Flessner, Senior vice president, Technology & Manufacturing Group, Texas Instruments. This milestone is the result of close collaboration between our construction, facilities and manufacturing teams, and we are excited to ramp up production in the coming months to support our customers' needs for years to come."