Chipmaker Texas Instruments Inc (TI) warned of slower-than-usual quarterly sales growth as it scrambles to restart production after Japan’s massive earthquake, and said it was unclear when the supply of the silicon and wafers it needs will return to normal.
Shares of TI, which plans to buy National Semiconductor Corp for US$6.5 billion in a bid to expand its hold over a booming analog chip market, fell 1.6 percent after it said earnings were also reduced by quake-related expenses.
Chief financial officer Kevin March said TI was projecting growth of about 5 percent for the current quarter, versus a typical 9 percent or more, as TI contends with supply shortages, as well as damage to its own factories and those of its customers in Japan.
“It’s a knock-on effect you’ve going on here,” March said. “We’re mindful that the actual raw silicon and wafers we’d use in our factories, a lot of those are manufactured in the earthquake zone.”
TI on Monday forecast second-quarter earnings of US$0.52 to US$0.60 per share on revenue of US$3.41 billion to US$3.69 billion. Analysts had expected revenue of US$3.52 billion.
The company’s first-quarter earnings also missed Wall Street expectations by US$0.01, as expenses rose after two of its Japanese factories were damaged in the country’s largest earthquake on record.
March told analysts on a conference call that it would be several months after July before TI sees full production revenue from the second factory because of manufacturing cycle times.
The company forecast a strong second half of the year as it said that underlying orders were still strong, but it did not give specific guidance.
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