DALLAS, July 23 (AP) — Texas Instruments, the largest supplier of chips used in mobile phones, said on Monday that its second-quarter profit plunged almost 75 percent from a year ago, when its results in the quarter were bolstered by the $1.65 billion sale of a sensor business.

Net income met analysts’ expectations, however, at $610 million, or 42 cents a share, down from $2.39 billion, or $1.50 a share, in the second quarter of 2006.

On an operating basis, the company, based in Dallas, earned $739 million, or 47 cents a share, after excluding parts of the business it sold last year.

Revenue for the quarter was $3.42 billion, down from $3.7 billion in the year-ago period, because of weaker demand for a broad range of products. Analysts had expected $3.45 billion in revenue, according to a Thomson Financial survey.

Ron Slaymaker, the company’s vice president of investor relations, said it had emerged from an inventory glut, and that sales of high-performance analog products were helping to offset declines in other products.

The president and chief executive, Richard K. Templeton, repeated his prediction, made in May, that gross profit margins, which were 52.1 percent in the second quarter of 2007, would reach 55 percent in the next few years.

Texas Instruments said it expected to earn 46 cents to 52 cents a share in the third quarter — in line with Wall Street forecasts — on revenue of $3.49 billion to $3.79 billion. Analysts were expecting third-quarter sales of $3.7 billion.

In May, the company unveiled plans to invest about $1 billion over 10 years in a new test and assembly facility in the Philippines, and also announced the sale of its digital subscriber line, or D.S.L., customer equipment business to the German chip maker Infineon Technologies for an undisclosed amount. That sale is expected to close at the end of this month.

In a separate announcement that coincided with Monday’s earnings report, Texas Instruments said it was working with Ericsson, the world’s largest maker of wireless networks, to build a cellphone platform that could run on any operating system that manufacturers and carriers choose.