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TI posts lower quarterly profit, revenue

Business Materials 21 October 2008 02:33 (UTC +04:00)

Texas Instruments Inc said on Monday its quarterly profit and revenue fell amid weak customer orders across its businesses due to the global economic slowdown, reports Reuters.

TI shares fell 5.7 percent after it said fourth-quarter earnings and revenue could decline and that it was looking to sell its merchant wireless business.

The company, which makes chips for everything from cell phones to industrial equipment, posted a profit of $563 million, or 43 cents a share, down from $776 million, or 54 cents per share, in the year-ago quarter.

Revenue fell to $3.39 billion from $3.66 billion.

Analysts on average had expected earnings of 44 cents a share on revenue of $3.395 billion, according to Reuters Estimates.

But the results were in line with TI's forecast range for earnings per share of 42 cents to 46 cents on revenue of $3.33 billion to $3.47 billion.

TI, which has been losing business to mobile phone chip rivals, forecast fourth-quarter earnings per share of 30 cents to 36 cents on revenue of $2.83 billion to $3.07 billion.

TI, which competes against Qualcomm Inc in the market for mobile phone chips, has seen its shares fall 37 percent since July. Its shares closed up 33 cents at $17.98 on the New York Stock Exchange in regular trading on Monday.

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