TI Paints It Bleak

Updated from 4:59 p.m. EST

Texas Instruments(TXN Quote) workers will be home for the holidays.

That's bad news for TI's business.

The Dallas-based company said it will idle some of its factories during the holidays, one of many steps TI is taking to rein in costs and inventory in the face of weak demand for its chips.

In its midquarter update Monday, TI trimmed its financial expectations for the fourth quarter, joining a growing group of chipmakers experiencing similar woes.

Business in the current quarter is developing more slowly than prior expectations, Investment Relations Manager Ron Slaymaker said in a conference call with analysts after Monday's close of market.

The wireless business is faring even worse than the already-low expectations TI had in October. And, he added, the slowdown in demand is not limited to wireless.

As a result, sales in its fourth quarter will range between $3.35 billion and $3.5 billion, below analysts' expectations and the midpoint of its initial guidance, which pegged sales between $3.46 billion and $3.75 billion.

Earnings per share will range between 37 cents and 40 cents, TI said, vs. its initial expectation of EPS between 40 cents and 46 cents. Analysts polled by Thomson Financial were looking for 42 cents.

Shares of TI were off 8 cents at $29.22 in recent extended trading.