TI President and CEO Rich Templeton was upbeat about the company’s future Nov. 10 at the annual Big Event saluting TI retirees. Rich spoke on the state of TI to approximately 1,000 retirees, spouses, TI volunteers and exhibitors at Market Hall in Dallas.
“The financial numbers pretty much tell the story,” Rich said, citing a strong rebound over the past two years following the market’s last downturn. “TI’s revenue has been growing faster than our semiconductor competitors. That’s good news, because in a brutally competitive marketplace, TI has been gaining market share.” In the third quarter, revenue was $3.25 billion. That was up 28 percent from the same period in 2003, but was essentially flat compared to the second quarter. Excellent third quarter results in wireless and digital light processing (DLP) were offset by some weakness in some analog product lines, Rich said. TI sales declined at some companies that distribute TI analog products, as these customers worked to burn off the excess.
“That was still going on as we started the current quarter. So we expect fourth-quarter revenue will decline somewhat from the third quarter. While we think this flat patch is related to inventory, nobody really knows if this is just temporary or if we’re starting another cycle,” he said. Rich said we are in a market place where communications and entertainment are driving semiconductor technology. These areas rely on TI’s core expertise in real-time signal processing. “Today, there are 1.6 billion users of cell phones around the world,” he said. “Half of all cell phones shipped worldwide use a TI digital signal processor. Feature-loaded cell phones demand the more capable DSPs that TI is currently producing.”
Rich congratulated TI Alumni Association members for keeping retirees linked to the company and to each other and for their volunteer efforts that benefit the community. He recognized the team of retirees who are helping with the book on TI history that will be published next year to mark TI’s 75th anniversary. Additionally, he thanked Dallas-area retirees in the TI Health Benefits Interest Group (TI HBIG) for their work ahead of the 2005 health benefits enrollment period. And he generally praised the retirees’ contributions during their careers that have contributed to the current success of TI and the quality of life in our community.
Rich emphasized that health care costs are an important issue to him, the company and the board of directors. After much consultation with retirees and lots of work by the Health Benefits organization, TI’s board of directors this year approved a one-time contribution of more than $80 million to enhance the trust fund TI uses to pay medical benefits. “TI still must share health care costs with retirees and active employees, but this one-time contribution should slow down the rate that your personal costs increase,” Rich said. “Many companies have dropped health benefits for retirees. We did not want to do that, and we did not do that.”
The Big Event gave retirees an opportunity to socialize with former coworkers, visit exhibits, get pneumonia shots and/or stroke or lipid screening, attend various seminars and enjoy a buffet lunch featuring barbecue brisket. Attendees could watch a continuous slide presentation on a big screen above the stage. It showed photos of TIAA activities and contributors to The Senior Source in the name of TIAA. John Byers, TIAA Membership Committee vice president and webmaster of the TIAA Web site produced the slide show.
TIAA President Ed Hassler thanked TI for underwriting the Big Event and other TIAA events and expressed his appreciation to the 65 Big Event volunteers — retirees and active TIers — attired in golden yellow T-shirts for the autumn celebration.
Jerry Brandenburg, TIAA Activities Committee vice president and former TIAA president, thanked Ed for heading the Big Event committee. Event-goers who filled out the event survey form had a chance to win one of 10 gift certificates at drawings during the program.
The Dallas Tap Dazzlers, an exciting ensemble of jazz-tap dancers with a minimum age of 45, provided entertainment between the drawings.
Russ Hicks was top bidder at a silent auction for a 300-mm (12-inch) silicon wafer autographed by Jack Kilby. Jack, inventor of the integrated circuit, was awarded the Nobel Prize in the year 2000. The “slice” was produced in DMOS 6. Proceeds from the silent auction will go to The Senior Source.
Next year’s Big Event is already booked for Nov. 9, 2005, at Market Hall.