TI (Dallas) said sales increased 17 percent compared with the second quarter, but were down 15 percent compared to the third quarter of 2008.

Net income of $538 million, or 42 cents per share, was up 117 percent compared to the second quarter, but down 4 percent compared to the third quarter of 2009, TI said.

Consensus analyst expectations for TI's third quarter had called for revenue of $2.82 billion and a net income of 39 cents per share, according to Yahoo Finance.

Rich Templeton, TI chairman, president and CEO, said through a statement that the company's performance in the third quarter was led by a second consecutive quarter of 20 percent growth in analog product revenue.

"We are encouraged with the strong sequential increase in demand for our products over the past two quarters as our customers are winding down their inventory corrections and have begun to increase production levels in their factories," Templeton said.

Sales of embedded processing products grew 12 percent sequentially, as did sales of wireless products, TI said. Revenue from other products was up 20 percent sequentially, TI said.

TI said it expects fourth quarter revenue to be between $2.78 billion and $3.02 billion. The company said it expects to report fourth quarter earnings of 42 to 50 cents per share.

Consensus analyst expectations for TI's fourth quarter had called for revenue of $2.78 billion and earnings of 40 cents per share, according to Yahoo Finance.