Texas Instruments ( TXN) beat analysts' second-quarter estimates, but its profits took a hit in a still-turbulent economy.

The Dallas, Texas-based firm posted revenue of $2.46 billion, down from $3.51 billion in the same period last year but above Wall Street's forecast of $2.41 billion. For the second quarter, the firm posted earnings of 20 cents a share on net income of $260 million, compared to 44 cents and $588 million in the same period last year. Analysts surveyed by Thomson Financial had estimated earnings of 18 cents a share.

"As it will likely take some time before the economy strengthens, we have aligned our operations and expenses to be consistent with the weak environment," said Texas Instruments CEO Rich Templeton in a statement. "As a result, we are seeing healthy trends in our profitability."

Sales of Texas Instruments' analog products were the company's biggest growth driver during the quarter, according to the CEO, and the firm's high volume analog and logic businesses are showing early signs of progress.

Texas Instruments, which competes with STMicroelectronics ( STM) and Qualcomm ( QCOM) also issued third-quarter guidance. The component specialist expects revenue between $2.5 billion and $2.8 billion, above analysts' estimate of $2.52 billion.

The firm also issued a bullish profit projection and expects earnings between 29 cents a share and 39 cents a share, compared to Wall Street's estimate of 27 cents a share.

Shares of Texas Instruments fell 17 cents, or 0.72%, to $23.44 in extended trading.