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.

Netflix, the online DVD rental leader, expects its profit to sag the rest of the year as it absorbs the cost of lowering its prices and upgrading its customer service to ward off an intensifying threat from a rival, Blockbuster.

The sobering forecast overshadowed the company’s second-quarter results, which were released on Monday after the stock market closed.

The dimmer outlook — foreshadowed on Sunday when management announced the lower prices — weighed on Netflix’s already drooping stock.

After plunging $2.36, or 12 percent, to end Monday’s regular session at $17.27, Netflix shares shed another 62 cents in extended trading.

“We are in a very competitive, large battle,” Reed Hastings, the chief executive of Netflix, said in an interview on Monday. “But we feel like we are still in a great position.”

Hoping to retain more of its current customers while enticing new subscribers, Netflix, based in Los Gatos, Calif., is lowering monthly fees by $1 on its two most popular plans to match Blockbuster’s prices for comparable Internet-only services. The new rates take effect on Tuesday.

The discounts were driven by Netflix’s trouble in signing new subscribers since late last year, when Blockbuster began giving its online subscribers the option of swapping DVDs to one of its stores instead of relying on the mail and waiting at least two days for another movie.

Netflix fared well financially in the second quarter, earning $26.6 million, or 37 cents a share. That represented a 50 percent increase from net income of $17 million, or 25 cents a share, at the same time last year.

Revenue totaled $303.7 million, a 27 percent improvement from $239.4 million last year.

If not for a $4.1 million payment from Blockbuster to settle a patent infringement lawsuit, Netflix said it would have earned 31 cents a share.

Taser International, the maker of stun guns, posted second-quarter profit of $3.7 million on sales to the military and law enforcement agencies.

Earnings and revenue beat analysts’ estimates. Net income was 6 cents a share, compared with a loss of 15 cents a share, or $9.6 million, a year earlier, when it had a $17.7 million expense to settle shareholder litigation. Sales climbed 59 percent to a record $25.9 million, Taser said yesterday.

Shares of Taser fell 58 cents, or 3.4 percent, to $16.56. Taser was downgraded to neutral from buy by an analyst, Eric Wold at Merriman Curhan Ford.

Taser sales to the military and domestic and foreign law-enforcement agencies increased after orders were delayed in the first quarter. The company is poised to expand beyond its current markets with a hand-sized model available in four colors to consumers.

Taser, based in Scottsdale, Ariz., depends on police and military customers for about 99 percent of sales.

Taser has successfully defended itself from product liability lawsuits and has “52 consecutive wins,” the chairman, Thomas P. Smith, said in an interview on Bloomberg Television. Eight of the lawsuits were dismissed during the quarter.

This record has helped produce a “significant decline in new litigation,” he said. Taser has about 50 lawsuits pending, according to Mr. Smith.