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Texas Instruments' New PMU

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Texas Instruments (TXN) or "TI” recently launched a multi-mode power management unit (:PMU), TPS65290 for microcontroller-based water and gas meters and other industrial applications.

TI’s TPS65290 PMU comes with the ability to manage power requirements ranging from 100 nA to 500 mA. It enables extended battery life, which allows designers to develop systems that can last more than 10 years. Currently, there is a growing demand for systems with longer battery in industrial applications.

Further, TPS65290 PMU allows designers to minimize board footprint as well as lower the number of components and therefore, the cost. The new PMU also works better with TI’s own ultra-low power MSP430 microcontrollers (MCUs) like the MSP430F5328. The TPS65290 PMU comes with a price tag of $1.75 per 1000 units.

TI’s increasing focus on new products should generate good returns. The company’s diverse portfolio targeting different market segments such as smart grid, factory automation, high-voltage power, LED lighting and control are also positives for its future revenue growth.

In the first quarter of fiscal 2013, TI generated total revenue of $2.89 billion, which was down 3.2% sequentially and 7.6% year over year (toward the higher end of the narrowed guidance range of $2.80 billion to $2.91 billion). The Analog business fell 1.3% sequentially and 2.3% year over year.

TI attributed the year-over-year decline primarily to SVA, which continues to shift to a consignment model. HVAL and HPA also declined but were offset by an increase in the power management product line.

Texas Instruments has a Zacks Rank #3 (Hold). Other semiconductor stocks that are worth considering include STMicroelectronics NV (STM), Microchip Technology Inc. (MCHP) and Intersil Corp. (ISIL). STMicroelectronics has a Zacks Rank #1 (Strong Buy) while Microchip and Intersil have a Zacks Rank #2 (Buy).

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