As Texas Instruments Inc. experiences some slowing in its traditional growth areas, calculator sales at the start of the school year could save the day.
The question is will it be enough?
The Dallas-based chipmaker may answer some questions today as it provides an updated outlook for third-quarter revenue and earnings per share.
In July, TI said it expected third-quarter earnings per share of 34 cents to 42 cents and revenue of $3.21 billion to $3.47 billion, below normal for the season. Officials also said then that it was more difficult to predict revenue as the company has reduced lead times for product orders.
Dallas-based TI narrowed estimates for its revenue and earnings per share for the first two quarters of this year, saying distributors and customers remain âreluctant to build inventoryâ given the uncertainty in world economies.
For the second quarter, TI posted a profit of $446 million, or 38 cents per share. Revenue fell 4 percent to $3.34 billion from a year earlier.
TI has seen less demand for its wireless products used in smart phones and tablets. Declines have been expected as the company phases out its wireless baseband division, which makes chips that connect wireless devices to networks, but TI also has seen rivals win big-name smart phones contracts.
However, Amazon last week announced it will use a TI OMAP chip in its latest Kindle Fire tablet because it had better bandwidth and computing power than Nvidiaâs chip.
TI shares are off 15 percent from their 52-week high. Shares yesterday fell 51 cents to close at closed at 28.67. The entire semiconductor field, including giant Intel, is struggling amid weak demand.
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