GARDEN GROVE, Calif.—Texas Instruments Inc.'s third quarter sales report and fourth quarter revenue target both disappointed Wall Street Monday (Oct. 22), with company executives citing a sluggish economy and weak end-product demand.
TI's sales for the third quarter came in at the upper half of the company's targeted range, but fell well short of consensus analysts' expectations. The company forecast a sequential sales decline of around 13 percent for the fourth quarter.
"We expected revenue and demand to be weak, and they were," said Ron Slaymaker, TI's vice president of investor relations. "Similarly, our expectation is that this market weakness will carry forward into the fourth quarter as customers respond to the sluggish macro environment and to poor demand for their products."
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TI is the latest in a string of chip companies to blame weaker than expected sales on a difficult macroeconomic environment and weak end demand. Rivals including Intel Corp., Advanced Micro Devices Inc. and Marvell Technology Group Ltd. have all reported sales below their initial quarterly targets as consumer demand for PCs and other products has declined in recent months amid a difficult economy.
"Our market has weakened, and we expect it will remain so in the fourth quarter as the overall world economy continues to be soft," said Kevin Marche, TI's chief financial officer.