Texas Instruments Incorporated (TXN)’s Fourth Quarter and Year-End 2014 Earnings Call Transcript

So those are the types of opportunities that we try to look for in a space like Comms Equipment. Certainly, from investment — incremental investment profile, if we had an extra dollar to spend and then we had an opportunity to spend that in either industrial or automotive, those products in general does tend to have longer life cycles and better characteristics, so that may see an increase in investment. And then lastly, I think those two markets have the secular transit that you are well aware of. So we will benefit from that, the rest of the industry will, and of course we hope to benefit just proportionately from those investments.

Dave Pahl VP, Head of Investor Relations

Do you have follow on Jim?

Jim Covello, Goldman Sachs

Yes I guess I will stick on that topic. I guess personal electronics has been coming down and but your view is really a function of an intentional effort of the part of Texas Instruments, it is just more a function of the other business that you have or just happen to be better long term growth areas and it is sort of naturally coming down. Is that the right characterization?

Dave Pahl VP, Head of Investor Relations

Well and even more specific than that I think if you backed out legacy wireless you will see that it has actually been fairly stable as a mix. So that change in percentage is more driven by the strategic decision to exit that one portion of the business. So, thank you Jim and we will go to the next caller please.

Operator

We go next to Joe Moore with Morgan Stanley

Joe Moore, Morgan Stanley

Hi thank you. I also like to ask about the end market breakdown that you guys provide. If I look at where you were a year ago, and there was probably some reclassification but it looks like industrial went from 24% in 2013 to 31% in 2014, and personal assistance from 37% to 29%, so the swings seem kind of dramatic. I just wanted to see if there were some change in the way you are looking at the breakdown.

Dave Pahl VP, Head of Investor Relations

Yes Joe, we continued to refine our understanding of our customers and markets. Now we got better tools and software. So if you go out to our web now, you will actually see our two years of history that we have out there as well as the identified sectors that those markets made out. Do you have a follow on?

Joe Moore, Morgan Stanley

No that is good enough for me thank you very much.

Dave Pahl VP, Head of Investor Relations

Okay, thank you. Next caller please.