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.