Updated from 4:49 p.m. EDT

Texas Instruments'

(TXN) - Get Report

fourth quarter is shaping up pretty much as expected, the company said Tuesday.

In advance of the update, which came after the bell, TI's shares closed regular trading off 27 cents, or 1.1%, to $25.02. In after-hours trading, company shares were recently off 31 cents, or 1.2%, to $24.70.

In its midquarter update, the chipmaker narrowed its forecast range for earnings and revenue. But the company expects both to come in near analysts' targets.

Orders for the company's standard chips are off sequentially as the company has tried to whittle down excess inventory, Ron Slaymaker, vice president and manager of investor relations at TI, said on a conference call. But shipments of wireless chips made up for that decline, he said.

"The semiconductor correction is continuing," Slaymaker said.

TI now expects to earn between 25 cents and 27 cents a share in the quarter, on sales ranging from $3.02 billion to $3.14 billion.

In October, the company

predicted it would earn 24 cents to 28 cents a share in the fourth quarter on sales ranging from $2.96 billion to $3.2 billion. On average, analysts polled by Thomson First Call were predicting that the company would earn 26 cents a share in the current quarter on $3.1 billion in sales.

For the full year, analysts were expecting $1.03 a share in profit on sales of $12.54 billion.

TI is making progress on decreasing the inventory in its distribution channels, Slaymaker said. Inventory of the company's standard chips at its distributors has fallen four consecutive months as the company has shipped more chips than it is producing, he said.

But Slaymaker declined to say when TI expected to have its inventory back in balance.

"I don't want to characterize how far we are from meeting our targets or how much longer it will take," he said.