Excluding the sold businesses, TI orders were up 19 percent for the year and revenues were up 10 percent, primarily due to growth in semiconductor. The increase was primarily from higher semiconductor profits in the non-memory portion of the business. The absence of losses in the sold businesses, primarily mobile computing. There was no profit sharing in 1996. Royalty revenues in 1997 were essentially steady with 1996.
Negotiations continue with potential licensees.
TI continues to expect a significant ongoing stream of royalty revenue into the next century. In September, the Tokyo High Court upheld a ruling that Fujitsu Limited's production of certain memory products does not infringe TI's Kilby patent. The company has appealed the ruling to the Japan Supreme Court. In November, the Japan Patent Office invalidated the Kilby patent. TI plans to appeal this decision to the Tokyo High Court.