TI lowers guidance on lagging DLP demand - Embedded.com

TI lowers guidance on lagging DLP demand

MANHASSET, N.Y. &#151 Texas Instruments Inc. said Monday (March 7) it expects revenue for the first quarter ending March to top out at $2.91 billion to $3.03 billion, compared to $2.90 billion to $3.14 billion originally forecast.Earnings per share are expected to range from 22 to 24 cents per share, compared with the previous range of 22 to 26 cents per share. Texas Instruments (Dallas, Tx.) said the updated estimates reflect lower-than-expected demand for its DLP (digital light processing) products used in televisions and projectors. Even though TI believes DLP-based televisions and projectors gained share in 2004, customers had built for more robust end-of-year sales.Additionally, the updated estimates include the expected impact of the company's sale of its commodity liquid crystal display (LCD) driver operations to Oki Electric of Japan, expected to close this month.The company also noted that sales continue to be affected by customers adjusting inventories in their distribution channels, which are expected to be completed by the end of March. Texas Instruments expects semiconductor revenue to range from $2.55 billion to $2.65 billion, compared with the prior range of $2.55 billion to $2.75 billion. Sensors and controls revenue is projected to range from $285 million to $295 million, compared with $280 million to $300 million previously.

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