Published in News

Texas Instruments warns of sales troubles

by on09 September 2011

Cutting profits
Chipmaker Texas Instruments has warned that its sales may fall short of earlier forecasts. The world's largest maker of analogue chips is complaining about a slump in orders for electronics components from customers across its product lines.

Profit will be 56 cents to 60 cents a share on revenue of $3.23 billion to $3.37 billion, the Dallas-based company said in a statement today. Analysts had been thinking that the outfit would make 60 cents on sales of $3.5 billion so this is slightly below expectations.

It seems that the outfit's customers and distributors are holding off on orders, concerned that a slowing economy will crimp demand for electronics. In the long term though many analysts see TI as a good investment with shares low and prospects good.

Texas Instruments’ competitor, Fairchild Semiconductor International has said its third-quarter sales and profitability will go the same way. Orders haven’t increased - as is normal this time of year - because some Asian customers are reducing their stockpiles of unsold chips.

Rate this item
(1 Vote)

Read more about: