Worldwide semiconductor sales grew 7.6% in July 2008 compared to July 2007. This is for all semiconductor sales and not specifically TXN. The growth is attributable to strength in cellphone and PC sales in particular.
SIA Global reported that semiconductor unit sales are up 8% over a year ago, driven largely by a 12.9% increase in Asia-Pacific. June semiconductor sales were up .5% y-o-y, but were 12% y-o-y when memory chips are excluded.
TI shares fell 14% on Wednesday as profits dropped and earnings were worse than expected. TI cited low demand for cell phone chips as well as decreased orders from distributors in June.
Texas instruments reported earnings in line with analysts estimates, but forecasted lower than expected profits for Q2 due to lower expected demand in the weak economy. Analysts downgraded TXN off this information causing the stock to drop 6%.
Bank of America downgraded Texas Instrument's rating from "Buy" to "Neutral" due weak earnings expectations.
Texas Instruments announced a 10 percent increase in Q3 profit, but this was below analysts’ expectations. The company also lowered its Q4 guidance since Sony Ericsson reported a loss in revenue and market share. Also, Texas Instruments will not be the wireless baseband supplier for Nokia Corporation and thus, the company’s market share can decrease.
TI announced on May 9 that it anticipates gross margins reaching 55% in the next few years, up from its previous estimate of 50%. Shares reached a 52-week high of $36.83.
07 - 3TXN shares drop from from $32.59 to $31.22, or a little over 4%, as the company lowers its Q1 earnings forecast.
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