or business to the standards needed to produce the new technological products for the Internet Era. In 1999, Texas instruments showed a one-year revenue growth of 11.9 percent during 1999. During the same year, TI showed an amazing 245.5 percent growth in net income and raised total revenue by 18 percent. (Hoovers, 2000) The Semiconductor business increased by 21 percent, faster than the 19 percent overall market growth. The Materials & Controls division’s revenues grew by 7 percent, strengthening its position in the market for pressure sensors. The Educational & Productivity solutions division showed improved revenues with a growth of 6 percent. Operating margins were also improved in the latter two divisions. (TI Annual Report, 1999)Pro forma gross margin increased to 48.3 percent for the company during 1999 and pro forma profit from operations nearly doubled. During the past year, a record level overall operating margin of 20.3 percent was achieved with record operating margins being obtained by each business segment. Earnings per share increased by 97 percent while gaining market share in the core areas of DSP and analog. TI also made numerous key acquisitions in broadband, catalog analog and wireless markets. (TI Annual Report, 1999)Adaptive StrategyTexas Instruments is definitely a prospecting company. They seek growth by watching for opportunities and innovations and developing new ideas and technologies. TI spent over $1.3 billion since late 1997 in acquiring Amati Communications, Libit Signal Processing and Telogy Networks in order to obtain market-leading expertise in broadband network technology. TI plans to use this expertise to expand the use of its DSP and analog chips. By acquiring this knowledge and increasing investment in new product development, TI has successfully added hundreds of new, differentiated semiconductor chips during the last several years. Texas Instruments believes that communication...
