Texas Instruments Lowers Revenue Expectations

The company said that orders for its semiconductors, which are used in products like cellphones and industrial equipment, started to weaken in June and that orders for shipments due in September were also lighter than expected.

“Although we believe customers and distributors have low inventory levels, the global economic environment is causing both to become increasingly cautious in placing new orders,” the company’s chief executive, Rich Templeton, said in a statement.

Texas Instruments forecast a third-quarter revenue range of $3.21 billion to $3.47 billion, the midpoint of which equals its second-quarter revenue.

This compares with the company’s five-year average for third-quarter sequential growth of 6 percent.

“It’s a little different to draw a concrete conclusion but what we do know is that it’s unusual,” the chief financial officer, Kevin March, told Reuters.

“As we look at our customers, our opinion is that their inventories are very lean. That tells us that if in fact we’ve normal seasonal demand it’s a good thing we’ve built a lot of inventory,” he said.

Texas Instruments reported earnings of $446 million, or 38 cents a share, compared with $672 million, or 56 cents a share, in the year-earlier quarter. Excluding certain items, earnings would have been 44 cents a share compared with Wall Street’s expectations of 41 cents, according to Thomson Reuters.

Revenue fell to $3.34 billion from $3.46 billion a year ago. Analysts’ average expectation was $3.35 billion.