Chipmaker Texas Instruments (TXN) - Get Report was down 6.1% in preopen Instinet trading, a day after it posted a third-quarter loss of 3 cents per share excluding items, edging the Thomson Financial/First Call consensus of a 4-cent loss. In the same period last year, the company reported a profit of 33 cents per share.
Texas Instruments mustered $1.85 billion in revenue, edging out Street estimates of $1.78 billion.
For the fourth quarter, the company expects revenue to decline 10% from the third quarter, mostly because of seasonal factors. Texas Instruments expect a quarterly loss, excluding items, of 9 cents a share.
This morning, Merrill Lynch semiconductor analyst Joe Osha downgraded Texas Instruments to near-term accumulate from buy, noting that the third-quarter results exceeded expectations but the outlook is worse than expected and the company's failure to further cut costs is deepening losses.