TI CEO Rich Templeton. Source: TI.

Shares of semiconductor veteran Texas Instruments (NASDAQ:TXN) didn't show any clear direction in after-hours trading, following the release of second-quarter results. The stock both rose and fell on the news, in a series of quick reversals.

Sales rose 8% year over year, landing at $3.3 billion. GAAP earnings increased 7% to $0.62 per diluted share. Both figures came in above the midpoint of management's guidance ranges.

Analysts had expected earnings of $0.59 per share on $3.3 billion in revenue. TI met or exceeded these targets.

Looking ahead, the midpoint of TI's third-quarter revenue guidance sits at $3.45 billion while earnings guidance centers on $0.71 per share. The revenue midpoint is in line with Wall Street projections, but analysts would currently have settled for earnings near $0.68 per share in the next quarter.

Sales increased 14% year over year in the analog and embedded processing divisions, followed by sharply stronger operating profits. As the legacy wireless segment continues to fade out, other revenue dropped 13% and operating income in that segment was cut in half. Analog and embedded products now account for 82% of total sales, up from 78% in the year-ago period.

In prepared remarks, CEO Rich Templeton reflected on TI's strong cash flows and record-level gross margins as evidence that his analog and embedded strategy is working. Free cash generation is on a 10% annual growth pace, and TI is not going to simply sit on a growing pile of cash.

"We returned $4.2 billion to shareholders in the past 12 months through dividends paid and stock repurchases, Templeton said. "Our strategy to return to shareholders all free cash flow not needed for net debt retirement, and to return proceeds from exercises of equity compensation, reflects our confidence in the long-term sustainability of our business model."