TI lowers Q2 forecast

SAN FRANCISCO: Texas Instruments Inc. has said that it would rise less than expected in the second quarter on weaker demand from wireless customers.

Texas Instruments, also known as TI, said that it now forecasts sales to rise about 5 percent from the $2.19 billion in the first quarter, instead of its original projection for a 7 percent sequential increase.

TI said that it also expects semiconductor revenue to rise 2 percent from the first quarter, rather than the 4 percent it had forecast previously.

Earnings per share are now expected to be about 6 cents, plus or minus a few cents, instead of about 8 cents, plus or minus a few cents, TI said. TI cited lower revenue and higher restructuring charges for the lower profit.

"Wireless customers are experiencing a slowdown in demand for handsets and excess inventory, particularly in Asia," the company said in a statement. "Demand for TI's semiconductor products in other markets continues to be robust."

© Reuters