To-day we have naming of parts. Yesterday,
We had daily cleaning. And to-morrow morning,
We shall have what to do after firing. But to-day,
To-day we have naming of parts.
-- From "Naming of Parts," by Henry Reed, 1942
Semiconductor makers -- and really, any manufacturing industry -- pay lots of attention to their book-to-bill ratios. Simply put, when that metric climbs above 1.0, the company gets incoming orders faster than it can make, ship, and bill for them. Orders outweighing shipments is generally a sign of strong product demand.
For Texas Instruments
Smartphones and other mobile devices have become a major driver of TI's business. In order to keep up with the rampant order inflow from Apple
That's where TI's asset-light strategy becomes a strength that sets TI apart from fabless chip designers like QUALCOMM
So times are good in Texas. Sales exceeded every reasonable expectation and $0.52 of earnings per share landed at the high end of management guidance. And judging from that bloated book-to-bill metric, the train should keep a-rolling for several quarters.
Would you buy Texas Instruments today, or can you come up with any better ways to ride the smartphone wave? Discuss in the comments below.