Texas Instruments Inc., the maker of chips for cell phones, narrowed its outlook for first quarter profit and sales on Monday because of lower-than-expected demand for a display technology used in televisions and projectors.
Dallas-based TI said its customers had expected more robust end-of-year sales of its Digital Light Processing (DLP) technology and are now trying to reduce their inventories quickly.
The updated estimates also include the expected impact of the company’s sale of its commodity liquid crystal display driver operations this month.
TI, whose first quarter ends on March 31, expects earnings per share between 22 cents and 24 cents, compared with the previous range of 22 cents to 26 cents.
The company’s expectations for total revenue are between $2.91 billion and $3.03 billion, compared with the prior range of $2.9 billion to $3.14 billion.
Semiconductor revenue was lowered at the top end by $100 million and is now forecast between $2.55 billion and $2.65 billion. TI said it is continuing to reduce inventory of its semiconductor products and expects to complete that process by month’s end.
Sensors and controls revenue is now forecast between $285 million and $295 million, compared with the prior range of $280 million to $300 million.
And educational and productivity solutions revenue is forecast between $75 million and $85 million, compared with the prior range of $70 million to $90 million.
Texas Instruments released its forecast after the close of regular trading. Company shares gained 48 cents to close at $27.37 Monday on the New York Stock Exchange, and then lost 3.2 percent, or 87 cents, in the extended session.