DALLAS (dpa-AFX) - Texas Instruments Inc. (TXN), the world's largest maker of analog chips, on Thursday cut its first quarter revenue and earnings outlook, citing lower demand for wireless products.
In a scheduled mid-quarter update, the Dallas, Texas-based company said it now expects first quarter revenue to be in the range of $2.99 billion to $3.11 billion, compared to its prior guidance of $3.02 billion to $3.28 billion.
Similarly, the company lowered its first quarter earnings guidance to a range of $0.15 to $0.19 per share from its previous guidance of $0.16 to $0.24 per share.
Analysts polled by Thomson Reuters currently expect the company to earn $0.31 per share on revenue of $3.16 billion for the first quarter. Analysts' estimates typically exclude special items.
TI makes chips used in phones, telecommunications equipments and calculators, making the company's earnings an indicator of demand across the economy.
Programmable chipmaker Altera Corp. (ALTR) on Thursday tightened its first quarter revenue outlook, citing broader than anticipated inventory adjustment related weakness. The San Jose, California-based company said it now expects first quarter revenue to decline 7% to 9% sequentially, compared to its prior outlook of a 5% to 9% sequential drop.
Altera said that it experienced somewhat more pronounced and broader than anticipated inventory adjustment related weakness as the quarter progressed.
Chipmakers have reported weak results in recent quarters because of wilting demand. In January, TI reported a 68% drop in fourth quarter profit, hurt by weak demand, costs associated the company's acquisition of smaller rival National Semiconductor Corp. and restructuring charges related to the planned closures of 2 older plants.
TI shares, which have traded in a range of $24.34 to $35.98 over the past year, closed Thursday's regular trading session at $32.60, down 5 cents. The stock is currently losing 39 cents or 1.20% in after hours trading.
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