According to FactSet, the Street consensus for net income is at 41 cents per share on revenue of $3.06 billion. The issue is not whether the company will meet this revised target -- I believe that it can. Investors should begin to focus on when exactly revenue will start trending in the right direction again. While I do understand the company is in the midst of transforming its business to become a leader in Analog and Embedded Processing, I worry investors are waiting too patiently while other growth opportunities are passing by. It doesn't help the company just completed its sixth consecutive quarter of revenue decline. With revised guidance, that streak will likely continue. Meanwhile, investors are ignoring the rebounding potential in Atmel ( ATML), which up 20% so far on the year. Unlike Texas Instruments' slow-moving progress in analog devices, Atmel's microcontroller business has been gaining plenty of traction. Atmel's growing maXTouch business, coupled with the company's renewed focus on profitability by recently unveiling several products such as the mXT450S aimed at generating higher margins, makes Atmel's growth prospects all the more interesting.
I don't want to make this sound as if I'm beating up on Texas Instruments, though. I believe the company is heading in the right direction and I have complete faith in management's ability to execute the transition towards Embedded Processing. However, I just don't believe the company's current situation deserves the premiums the stock commands, not when gross margins are also on the decline. Accordingly, I would still be a seller here at $35 per share and above, and I would look to a better rebound potential in a company like Atmel, which is showing more promise. At the time of publication the author had no position in any of the stocks mentioned. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.