Texas Instruments reported fourth-quarter 2006 revenue of $3.46 billion. Revenue declined 8 percent compared with the third quarter due to a broad- based decline in company semiconductor product revenue of 5 percent and a seasonal decline in graphing calculator sales. Compared with the same quarter a year ago, revenue grew 4 percent due to higher demand for the company's semiconductor and calculator products. For the year, TI revenue grew 16 percent to a record $14.25 billion. Growth was driven primarily by strong demand for the company's analog products, especially high-performance analog, and DSP products. In the fourth quarter, income from continuing operations was $671 million. For the year, income from continuing operations was $2.64 billion. Net income was $4.34 billion.

The sale of TI's former Sensors & Controls business was completed on April 27, 2006, and that business is reported as a discontinued operation. Also, the Educational & Productivity Solutions segment has been renamed Education Technology to more accurately reflect the strategic focus of this business. The company plans to reduce annualized costs by about $200 million. About 500 jobs are expected to be reduced by year end. In total, the company will take restructuring charges of approximately $55 million, about evenly distributed across the four quarters of 2007.