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TEXAS INSTRUMENTS 2010 ANNUAL REPORT
41
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Segment results
Results for the Analog and Wireless segments for 2009 and 2008 have been restated due to the transfer of a low-power wireless
product line from the Analog segment to the Wireless segment in the first quarter of 2010. For 2009, revenue from this product line was
$68 million, and it operated at a loss of $17 million. For 2008, revenue from this product line was $68 million, and it operated at a loss
of $24 million.
Analog
2009 2008
2009฀
vs.฀2008
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,202 $ 4,789 -12%
Operating profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770 1,074 -28%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.3% 22.4%
Restructuring expense* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ฀84 $ 58
* Included in operating profit
Analog revenue declined $587 million, or 12 percent, from 2008 primarily due to lower shipments of high-volume analog & logic
products. Also contributing to the decline, but to a lesser extent, was high-performance analog, where although shipments were
about flat compared with 2008, revenue fell due to a higher proportion of shipments of lower-priced products. Revenue from power
management products was about flat.
Operating profit was $770 million, or 18.3 percent of revenue. This was a decrease of $304 million from 2008 due to lower revenue
and associated gross profit, partially offset by lower operating expenses.
Embedded Processing
2009 2008
2009฀
vs.฀2008
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,471 $ 1,631 -10%
Operating profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 268 -28%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2% 16.5%
Restructuring expense* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ฀43 $ 24
* Included in operating profit
Embedded Processing revenue declined $160 million, or 10 percent, compared with 2008 primarily due to lower revenue from catalog
products. The decline in catalog revenue was primarily due to a higher proportion of shipments of lower-priced products. Lower
shipments of products for automotive applications contributed to a lesser extent to the segment’s revenue decline.
Operating profit was $194 million, or 13.2 percent of revenue. This was a decrease of $74 million, or 28 percent, compared with
2008 due to lower revenue and associated gross profit, partially offset by lower operating expenses.
Wireless
2009 2008
2009฀
vs.฀2008
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,626฀ $ 3,451 -24%
Operating profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 323 -2%
Operating profit % of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.0% 9.3%
Restructuring expense* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ฀62 $ 132
* Included in operating profit
Wireless revenue declined $825 million, or 24 percent, from 2008 primarily due to lower shipments of baseband products, and to a
lesser extent, lower shipments of OMAP applications processors. These decreases more than offset higher shipments of connectivity
products. Baseband revenue for 2009 was $1.73 billion, a decrease of $813 million, or 32 percent, from 2008.
Operating profit was $315 million, or 12.0 percent of revenue. This was a decrease of $8 million, or 2 percent, from 2008 due to
lower revenue and associated gross profit, partially offset by lower operating and restructuring expenses. As noted above, most of our
reductions in R&D were in Wireless.