Head, Investor Relations at Texas Instruments
Welcome to the Texas Instruments' Fourth Quarter 2022 Earnings Release Conference Call. I'm Dave Pahl, Head of Investor Relations, and I'm joined by our Chief Financial Officer, Rafael Lizardi. For any of you who missed the release, you can find it on our website at ti.com/ir. This call is being webcast live over the web and can be accessed through our website. In addition, today's call is being recorded and will be available via replay on our website. This call will include forward-looking statements that involve risks and uncertainties and that could cause TI's results to differ materially from management's current expectations. We encourage you to review the notice regarding forward-looking statements contained in the earnings release published today as well as TI's most recent SEC filings for a more complete description. First, you likely saw last week, we announced that Haviv Ilan will become President and CEO on April 1st, and that Rich Templeton will continue as our Chairman. I'm sure you want to join me in congratulating both of them. Secondly, let me provide some information that's important to your calendars. Next week on Thursday, February 2nd, at 10 a.m. Central Time, we'll have our capital management call. Similar to what we've done in the past, Rafael and I will summarize our progress and provide some insights into our business and our approach to capital allocation. This will include an update of our 300-millimeter capacity expansion plans to support the increasing confidence that we have in our long-term growth.
Moving on, today, we'll provide the following updates. First, I'll start with a quick overview of the quarter. Next, I'll provide insight into fourth quarter revenue results with some details of what we're seeing with respect to our customers and markets. I'll then provide an annual summary of our revenue breakdown by end market. And lastly, Rafael will cover the financial results and our guidance for the first quarter of 2023.
Starting with a quick overview. Revenue was $4.7 billion, a decrease of 11% sequentially and 3% from the same quarter a year ago. As expected, our results reflect weaker demand in all end markets with the exception of automotive. A component of the weaker demand was customers working to reduce their inventories. In the first quarter, we expect a weaker than a seasonal decline with the exception of automotive as we believe customers will continue to reduce inventory levels.
Turning to our segments. Fourth quarter Analog revenue declined 5% year-over-year and Embedded Processing grew 10%. Our Other segment declined 11% from the year ago quarter.
Now I'll provide some insight into our fourth quarter revenue by end market. I'll focus on sequential performance again this quarter as it's more informative at this time. First, the industrial market was down about 10%. The automotive market was up mid-single digits with strength in most sectors. Personal electronics was down mid-teens with broad-based weakness. Next, communications equipment was down about 20%. And finally, enterprise systems was also down about 20%.
Lastly, as we do at the end of each calendar year, I'll describe our revenue by end market for 2022. We break our end markets into six categories that are grouped by their life cycles and market characteristics. The 6 end markets are industrial, automotive, personal electronics which includes products such as mobile phones, PCs, tablets and TVs, communications equipment; enterprise systems and other, which is primarily calculators. As a percentage of revenue for 2022, industrial was 40%, automotive about 25%, personal electronics 20%, communications equipment 7%, enterprise systems 6% and other was 2%. In 2022, industrial and automotive combined made up 65% of TI's revenue, up about 3 percentage points from 2021 and up from 42% in 2013. We see good opportunities in all of our markets, but we place additional strategic emphasis on industrial and automotive. Our industrial and automotive customers are increasingly turning to Analog and Embedded technologies to make their end products smarter, safer, more connected and more efficient. These trends have resulted and will continue to result in growing chip content per application, which will drive faster growth compared to our other markets.
Rafael will now review profitability, capital management and our outlook. Rafael?