Tuesday, December 12, 2006
Texas Instruments Monday (Dec. 11) revised its sales outlook for the current quarter, saying it now expects revenue of $3.35 billion to $3.5 billion. TI had previously said it expected revenue for the quarter to be $3.46 billion to $3.75 billion.
TI (Dallas) said it expects semiconductor revenue to be between $3.28 billion and $3.42 billion, down from previous guidance of $3.39 billion to $3.66 billion. The company now expects fourth quarter earnings per share of 37 to 40 cents, down from previous guidance of 40 to 46 cents.
In a research note published Monday, Satya Chillara, an analyst with Pacific Growth Equities LLC, said the wireless segment appears to be growing, but that the low-cost cell phone product mix and softness with the 3G applications processor business in Japan could keep a lid on TI's revenue growth.
"We feel that the DLP business had been growing fast, and now we think this segment is going through aggressive pricing pressure," Chillara wrote. "Based on Q3 data, we feel it is evident that rear-projection TV as well as plasma and LCD TV pricing is putting pressure on DLP revenues. We remain cautious of the DLP growth prospects going forward."
Chillara maintained Pacific Growth's "neutral" rating on TI stock.
By: DocMemory
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