Nokia woes ding Texas Instruments earnings

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.

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TOPICS: Banking, Nokia
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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

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5 comments
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  • RE: Nokia woes ding Texas Instruments earnings

    Nokia is in a death spiral, so of course their suppliers are going to feel the pain too. I expect Nokia to be bought by someone before the end of the year. The only real question is who? In today?s world you cannot sit there and say, we are abandoning our current product lines, in hopes that a different part supplier will boost our sales.
    Rick_K
    • RE: Nokia woes ding Texas Instruments earnings

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  • RE: Nokia woes ding Texas Instruments earnings

    Elop needs to get out in front of this more quickly (unless he is helping Microsoft to purchase Nokia by driving price down OR unless Trojan Horse theory was correct and killing Nokia quickly was the original intent of Elop )! Elop MUST indicate that they realize WP won't be ready for some time and they need to reverse Nokia layoffs/transitioning of Employees to Accenture for a period of a year.
    jkohut
    • RE: Nokia woes ding Texas Instruments earnings

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  • RE: Nokia woes ding Texas Instruments earnings

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