DALLAS, Sept. 21 /PRNewswire-FirstCall/ -- Texas Instruments Incorporated (TI) today announced that its Board of Directors has authorized the company to repurchase an additional $5 billion of its common stock.
TI plans to repurchase shares at times and prices considered appropriate by the company. When combined with other previously announced buyback plans, the total outstanding share repurchase authorization is now $6.8 billion. Including today's announcement, the Board has authorized the repurchase of $15 billion of stock since September 2004. Over this period, the company has reduced the number of its shares outstanding by over 200 million shares, or more than 10 percent.
Additionally, the company plans to raise its quarterly cash dividend 33 percent. TI's new quarterly dividend rate will be $0.04 per quarter, resulting in annual dividend payments of $0.16 per share. The company's previous dividend increase was announced in July 2005, when the dividend was raised 20 percent. TI has paid dividends to its shareholders on an uninterrupted basis since June 1, 1962.
TI expects the first quarterly distribution of the new dividend will be payable November 20, 2006, to stockholders of record on October 31, 2006, contingent upon formal declaration by the Board of Directors at its regular meeting in October.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements in this release that describe the Company's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of the Company or its management:
* Market demand for semiconductors, particularly for analog chips and
digital signal processors in key markets such as communications,
entertainment electronics and computing;
* TI's ability to maintain or improve profit margins, including its
ability to utilize its manufacturing facilities at sufficient levels to
cover its fixed operating costs, in an intensely competitive and
cyclical industry;
* TI's ability to develop, manufacture and market innovative products in
a rapidly changing technological environment;
* TI's ability to compete in products and prices in an intensely
competitive industry;
* TI's ability to maintain and enforce a strong intellectual property
portfolio and obtain needed licenses from third parties;
* Expiration of license agreements between TI and its patent licensees,
and market conditions reducing royalty payments to TI;
* Economic, social and political conditions in the countries in which TI,
its customers or its suppliers operate, including security risks,
health conditions, possible disruptions in transportation networks and
fluctuations in foreign currency exchange rates;
* Natural events such as severe weather and earthquakes in the locations
in which TI, its customers or its suppliers operate;
* Availability and cost of raw materials, utilities and critical
manufacturing equipment;
* Changes in the tax rate applicable to TI as the result of changes in
tax law, the jurisdictions in which profits are determined to be earned
and taxed, the outcome of tax audits and the ability to realize
deferred tax assets;
* Losses or curtailments of purchases from key customers and the timing
and amount of distributor and other customer inventory adjustments;
* Customer demand that differs from company forecasts;
* The financial impact of inadequate or excess TI inventories to meet
demand that differs from projections;
* Product liability or warranty claims, or recalls by TI customers for a
product containing a TI part;
* TI's ability to recruit and retain skilled personnel; and
* Timely implementation of new manufacturing technologies, installation
of manufacturing equipment and the ability to obtain needed third-party
foundry and assembly/test subcontract services.
For a more detailed discussion of these factors, see the text under the heading "Risk Factors" in Item 1A of the Company's most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of publication, and the Company undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances.
About Texas Instruments
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet our customers' real world signal processing requirements. In addition to Semiconductor, the company includes the Educational & Productivity Solutions business. TI is headquartered in Dallas, Texas, and has manufacturing, design or sales operations in more than 25 countries.
Texas Instruments is traded on the New York Stock Exchange under the symbol TXN. More information is located on the World Wide Web at http://www.ti.com/ .
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