Texas Instruments guidance disappoints

Texas Instruments sounded a warning for the holiday season as it reported lacklustre activity from manufacturers in computing and consumer electronics, including TVs and gaming machines.

The Dallas-based chipmaker issued third-quarter forecasts of $3.55bn in revenues and earnings per share of 60 cents – below Wall Street analysts’ expectations of $3.64bn and 66 cents respectively.

“We note that production at some computing and consumer manufacturers appears lukewarm even though we’re heading into the back-to-school and holiday seasons,” said Rich Templeton, TI chief executive.

The Japan earthquake damaged its factories, but the company said it had resumed production ahead of schedule.

TI delivered slightly better than expected second-quarter numbers of $3.46bn in revenues and 56 cents a share in profits, compared with analysts’ forecasts of $3.44bn and 54 cents.

TI said its $6.5bn all-cash acquisition of National Semiconductor announced in April had cleared all antitrust reviews except China’s, and the deal was expected to close before the end of the year.

Intel, the chipmaker, also reported softness in mature consumer markets during its earnings call last week.

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