Nokia woes ding Texas Instruments earnings

Summary:Nokia, which is reeling from falling sales as it transitions to Windows Phone 7, warned about future quarters already. Now it's time for the supplier fallout.

Texas Instruments cut its second quarter outlook due to the fallout at one customer: Nokia.

Nokia, which is reeling from falling sales as it transitions to Windows Phone 7 and faces weak profit margins, warned about future quarters already. Now it's time for the supplier fallout.

Texas Instruments projected earnings for the second quarter between 51 cents a share and 55 cents a share, down from a previous range of 52 cents a share to 60 cents a share. Revenue was projected to be $3.36 billion to $3.5 billion, down from a previous range of $3.41 billion to $3.69 billion.

On a conference call with analysts, Texas Instruments was clear that Nokia was the problem.

Ron Slaymaker, vice president of investor relations, said TI was seeing strong growth for the most part. Tablets and e-reader demand was strong. TVs and game consoles were slow. Industrial processor demand---solar, e-meters and motor---was strong.

However, Nokia accounts for 19 percent to 20 percent of TI revenue, say analysts. Slaymaker was then asked explicitly how much of TI's miss was related to Nokia. He said:

The bulk of it being Nokia is probably understating, probably be closer to say all of the change was associated with that customer, and that's not to say there aren't other pluses and minuses.

Also:

Topics: Banking, Nokia

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.