Thursday January 24, 2013
Texas Instruments forecasts weak demand
new york: Texas Instruments Inc (TI) posted quarterly revenue that was ahead of Wall Street expectations but the chipmaker warned of uncertain demand and a widespread customer reluctance to order until the last minute due to macroeconomic worries.
TI, which makes chips for everything from industrial equipment to cars, said on Tuesday that while orders appeared to be following a normal pace for this time of year, customers were still worried about increasing their inventory of chips.
Chief financial officer Kevin March said quarterly revenue was at the high end of TI's expected range because customers had made some orders late in the quarter.
But he said that weakness in European economies and in China as well as uncertainty about government policies in the United States were making customers wary of ordering too many chips.
“You've got the lingering uncertainty in Europe. You've got the slowdown in China that seems to be reversing itself now and you've got the (US) fiscal cliff taking up all the headlines,” March said. “Combined, it's got everybody really conservative right now and not willing to go out on a limb.”
TI said its fourth-quarter profit fell to US$264mil or 23 cents per share compared with US$298mil or 25 cents per share in the year-ago quarter. Revenue fell to US$2.98bil from US$3.42bil but was ahead of Wall Street expectations for US$2.95bil . Reuters