Texas Instruments Inc. narrowed a quarterly earnings and revenue target range it issued in April because of caution among its chip customers and weak demand for high-end phones.

TI forecast second-quarter earnings of 43 cents to 47 cents per share on revenue of $3.33 billion to $3.46 billion.

"There are a couple of areas where we are seeing weakness, one of which is wireless handset revenue, which continues to be unseasonably weak and we would expect that it's probably going to be down a little bit from the first quarter level," said TI's head of investor relations Ron Slaymaker on a brief conference call with analysts to discuss the update.

"Another area (of weakness) would be processors, which are running weak for the quarter," Slaymaker said.

At the same time, TI is seeing growth in its analog chip business, which Slaymaker said would grow both sequentially and year over year. Certain types of digital signal processors and microcontrollers also are seeing similar positive growth.

On April 21, TI disappointed investors with a forecast for earnings of 42 cents to 48 cents per share on revenue of $3.24 billion to $3.5 billion.

Before the mid-quarter update, analysts had, on average, expected net earnings of 46 cents per share on revenue of $3.38 billion, according to Reuters Estimates.

The Dallas-based company said Monday it expected semiconductor revenue in the quarter of $3.17 billion to $3.28 billion, compared with the previous forecast of $3.08 billion to $3.32 billion.

By: DocMemory
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