During their conference call, the company blamed weak guidance on their business with Nokia, across a number of product lines.
UPDATE: Notes from the call.
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Texas Instruments conf. call summary- co lowered Q2 guidance because of one customer (32.67 -0.60)
Co said it lowered Q2 guidance due to lower demand from a single wireless customer where most of its sales are baseband products.
In its non-baseband products, no single end customer will make up more than 5% of its revs in the first half of this year. Orders are solid… they’re not exceptionally strong, but co expects they will be up from last quarter where we did have strong growth. Japan will be down at a double digit level… so there clearly is weaker demand in that particular region. Outside of Japan, co would describe the U.S. Co would expect to be up solidly, and then both Asia and Europe probably more flattish to the last quarter. So U.S. up solidly. Asia, Europe flattish, and then Japan down double digit levels. Co expects to build inventory this quarter with most of it associated with the significant demand that they are seeing from its largest customer here. So similar to last quarter where co thinks it said at that point about a third of the inventory build was baseband product associated with a forecast revision from this customer. Co said it will see similar… this is more a customer performance and a market issue. This is not a competitor coming on board to displace TI in these handsets. So the co’s expectation is it has another probably six quarters basically through the end of 2012 as it has described before of support to provide for this customer on these products. Communications infrastructure revenue is doing well this quarter with demand continuing to be driven as it has seen in the past by data capacity expansion, in this case specifically in North America. In the computing markets, I would say most of our PC related revenue is tracking flattish compared with Q1. Co thinks that’s pretty much similar to what you’re hearing from others in its industry and probably also similar to what the market overall is tracking. Tablets continued to experience a strong growth, and TXN is participating in that. From a consumer end market, co would describe it as mixed. + Products like E readers are strong. Product areas like televisions and game consoles where TXN has exposure it would describe as relatively slow. Overall, in industrial, co would describe that market as continuing mostly strong. Areas such as solar, motor drive, E metering are solid. |
