Texas Instruments (TXN) posted broadly in line results, despite a weak wireless chip performance.
The Dallas semiconductor giant posted pro forma earnings of 43 cents a share, up from 35 cents a year ago, and meeting analysts estimates. Sales for the quarter were $3.27 billion, up from $3.19 billion and roughly in line with the $3.28 billion analysts expected.
But some analysts pointed to the company’s digital chips for cell phones, where sales of $1.12 billion were 18% below prior quarter levels and 3% down from the year-ago period. These “declines were due to lower sales into cell phone applications,” the company said in a press release.
To some analysts, the shortfall in mobile phone chips suggest that TI’s big customer Nokia (NOK), which posted disappointing first quarter results, may be to blame. This would also mean that Qualcomm (QCOM) may be gaining share as Research in Motion (RIMM) is taking business at the high end of the phone market.
Looking ahead, the company expects second quarter profits in a range between 42 cents and 48 cents on sales of about $3.32 billion. Both targets were slightly below the 48 cent profit and the $3.44 billion analysts’ consensus estimates.