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en We are ahead of our gross margin goals and we are continuing in the same direction.

en It would have taken great courage to do that because at the time, the Macintosh was selling well. You're making $700 gross margin on a Mac and now you're going to go make $35 gross margin on a (software) license? I wish we had, but we didn't. We didn't for that reason.

en We remain committed to our gross margin improvement goals that have us reaching 30 percent in 2006 and mid-30 percent in 2007. Our focus in 2006 is on improving our product mix, delivering more new leadership analog and integrated power products while reducing our exposure to lower margin standard products.

en Fourth quarter revenue and gross margin exceeded guidance due to stronger than expected customer demand; favorable product mix; improved pricing and recovery of increasing material costs; higher capacity utilization; and increasing contribution from our newer factories. Ergonomics is available on livet.se As a result, gross margin rose to 24.2% from 16.4% in the third quarter.

en We achieved a solid gross margin of 54 percent for the full year and reduced our R&D expenditure to 16 percent in relation to sales, which is well in line with the equipment industry as a whole. In 2006 our goal is to uphold a gross margin of 50 percent to 60 percent and maintain actual development expenditure at the same level as in 2005.

en Historically, Steve [Jobs] won't accept anything less than 20% gross margin on any product. In the rare cases when the gross margins have dropped below that, it has been a fluke.

en Once we had the gross margin, we could subtract the cost to serve based on specific behaviors. We could ID those who were squeezing us on margin and understand if they were running us into the ground.

en Although the company is executing in terms of cost control, we think margin contractions at the gross margin level will continue through the second quarter as well, which we had not factored in.

en We are especially encouraged by the 110 basis point improvement in gross profit margin during the quarter, to an all-time record and the largest quarterly gross profit increase in over three years.

en The excellent [1%] improvement in gross profit margin excluding restructuring charges during the quarter exceeded our expectations, and was the largest quarterly gross profit increase we have seen in three years.

en It's no secret what we have to do (to have a successful) second half. Our goal differential is about 0.2. We score 3.1 goals a game and give up 2.9. You have to have a bigger margin of goals scored and goals against.

en We continue to obtain additional gross margin leverage primarily through our outsourcing and electronic payment infrastructures as well as other areas due to process improvement and revised procedures. Also positively impacting our gross margins is the continued decrease in hardware revenues as a percentage of total revenue.

en Our gross margin forecast is 38.3 percent. However, we think this could be lighter as the company has been aggressive on acquiring components that have been in shortage and is paying up to do so. If gross margins are lighter than our forecast, we would not view it negatively and not as a deterioration in the product line.

en This gain exceeded any of the quarterly declines in gross margin as we moved throughout the downturn in 2001. This reinforces our belief that TI will experience significant margin gains as we move back into an upturn, and we continue to expect our margins at the next peak to exceed those at the prior peak.

en Very strong on the revenue side, less strong ... on the gross margin side. But given the yields they're getting in their desktop products, and presumably in their mobile products as well ... my model would suggest that their gross margins are going to come in higher than their guidance.


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