NEW YORK (October 19, 2009)--Texas Instruments' third-quarter profits and sales inched past the improved expectations the chip maker released last month, although they still were down from a year earlier in the wake of the economic downturn.

Texas Instruments Inc. said Monday it earned $538 million, or 42 cents per share, during the quarter, down 4 percent from the same period a year earlier.

Sales fell 15 percent to $2.88 billion.

The results surpassed the company's September forecast and topped analysts' expectations.

TI said its largest division, which makes analog chips used in digital music players and other gadgets, saw 20 percent growth for the second quarter in a row.