Texas Instruments' conference call comments have been added to this story.
DALLAS (TheStreet) -- With clouds of uncertainty gathering over the U.S. economy, chip maker Texas Instruments (TXN) cut its third-quarter guidance on Thursday, citing weakening demand for its products.
The silicon specialist, which issued its mid-quarter update after market close, expects revenue between $3.23 billion and $3.37 billion, down from its prior estimate between $3.4 billion and $3.7 billion. The current consensus estimate of analysts surveyed by Thomson Reuters is for sales of $3.51 billion in the September period.
Excluding items, Texas Instruments expects earnings ranging from 56 to 60 cents a share, below its prior range of 55 cents to 65 cents a share, and providing downside to Wall Street's estimate for a profit of 59 cents a share in the quarter.Texas Instruments, which competes with Qualcomm (QCOM) and STMicroelectronics (STM), blamed the changes on a tougher demand environment. In a statement, the company explained that the reductions were the result of "broadly lower demand across a wide range of products, markets and customers." "In the month of June was really when it started to become evident to use that we were seeing below seasonal forecasts," explained Ron Slaymaker, Texas Instruments' vice president of investor relations, in a conference call late on Thursday. "Macro-economic weakness is resulting in broadly lower demand from consumers and enterprises - the real root issue is in demand." Investors, however, largely shrugged off the lowered guidance. Texas Instruments' shares were down just 5 cents, or 0.19%, to $25.75 in extended trading. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: email@example.com.
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