NEW YORK ( TheStreet) -- Texas Instruments' (TXN - Get Report) outlook may have underwhelmed investors this week, but CFO Kevin March predicts a semiconductor sales boost from cars and home appliances.
The company's decision to shift from legacy wireless to lucrative analog and embedded processing technologies is already paying off, he told TheStreet, during a telephone interview after the company's third-quarter results.
"They are growing quite nicely -- both of those segments are gaining market share," he said. Revenue from analog and embedded processing products grew 10% sequentially, he added, and 7% compared to the prior year's quarter.
"We're beginning to see them being used a lot more in automobiles and industrial applications," said March. "That's pretty exciting, because the number of automobiles sold globally is quite high, so there's a lot of opportunities for us to sell into and in the industrial space we're just seeing more and more things turn up that use semiconductors."March pointed to the example of LED lights and motion sensors in the home that contain semiconductors, and even automatic faucets in public restrooms. "That's a huge part of the economy that is just now beginning to adopt semiconductors into everyday use -- we have over 100,000 orderable parts that customers can order from us, and today, we estimate that we sell to over 100,000 customers." In the automotive sector, the CFO expects that expansion of semiconductor-rich advanced driver assistance systems and "infotainment" technology from high-end to low-end cars will bode well for Texas Instruments. Analog and embedded processing products now account for 80% of the company's total revenue, up from about 72% in the same period last year. Texas Instruments' legacy wireless products declined to less than 2% of revenue during the third quarter. Texas Instruments reported third-quarter revenue of $3.24 billion, down from $3.39 billion in the prior year's quarter, but above Wall Street's estimate of $3.23 billion. Excluding items, the company earned 56 cents a share, down from 67 cents a share in the same period last year, but above the consensus estimate of 53 cents a share.