Texas Instruments Inc. announced consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, revenue was $2,979 mi against $3,420 million for the same period a year ago. Operating profit was $139 million against $365 million for the same period a year ago, compared with the prior quarter, operating profit declined primarily due to higher Restructuring charges/other, including the Wireless restructuring charge and the non-recurrence of a $144 million benefit in the prior quarter associated with a change in a Japan pension program, as well as lower gross profit. Income before income taxes was $155 million against $349 million for the same period a year ago. Net income was $264 million or $0.23 diluted per share against $298 million or $0.25 diluted earnings per share for the same period a year ago. Cash flows from operating activities were $1,085 million against $970 million for the same period a year ago. Additions to property, plant and equipment was $96 million against $152 million for the same period a year ago. Adjusted Net income (non-GAAP) was $417 million or $0.36 per share. Free cash flow was $989 million against $818 million for the same period a year ago.

For the year, revenue was $12,825 million against $13,735 million for the same period a year ago. Operating profit was $1,973 million against $2,992 million for the same period a year ago, operating profit declined in 2012 primarily due to the combination of lower gross profit and higher operating expenses. Income before income taxes was $1,935 million against $2,955 million for the same period a year ago. Net income was $1,759 million or $1.51 diluted per share against $2,236 million or $1.88 diluted earnings per share for the same period a year ago. Cash flows from operating activities were $3,414 million against $3,256 million for the same period a year ago. Additions to property, plant and equipment was $495 million against $816 million for the same period a year ago. Free cash flow was $2,919 million against $2,440 million for the same period a year ago.

Texas Instruments Inc. provided earnings guidance for the first quarter and full year of fiscal 2013. For the first quarter of 2013, the company expects revenue in the range of $2.69 billion and $2.91 billion and earnings per share is expected to be between $0.24 and $0.32. At the middle of this range, revenue is expected to be down $179 million sequentially. About $135 million, or about 75%, of this decline is expected to come from Wireless products for the smartphone and consumer tablet markets from which the company is exiting. The first quarter's EPS will be negatively affected by about 6% from acquisition and restructuring charges.

For the full year of fiscal 2013, the company expects approximately the R&D expense of $1.6 billion, capital expenditures of $0.5 billion, depreciation of $0.9 billion and annual effective tax rate of 22%.