Texas Instruments, a leading manufacturer of computer microchips, reported a profit of $12.3 million in the second quarter, against a loss of $3.9 million last year. The company said the gain came from the favorable effects of the falling dollar and a decline in pension costs under a change in accounting rules.
The company's results marked its third consecutive quarter of improvement since the semiconductor industry's worst slump in history and its first profitable period since the first quarter of 1985.
Revenue was unchanged from last year at $1.24 billion.
Wall Street expectations about Texas Instruments' second quarter had varied wildly, with estimates ranging from a slight loss up to a profit of $36 million.
Anticipation of the company's results, which were released after the close of the market Friday, drove the stock up $5.87 1/2 to close at $108.87 1/2.