Texas Instruments cuts outlook over Nokia woes

Texas Instruments has cut its financial outlook as one of its chief customers, Nokia, struggles with falling sales
Written by Larry Dignan, Contributor

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

The Finnish handset maker, which is reeling from falling sales as it transitions to Windows Phone 7 and faces weak profit margins, has already warned about future earnings. The supplier fallout has now hit Texas Instruments (TI), which has projected earnings for the second quarter between 51 cents (£0.31) 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 $3.36bn to $3.5bn, down from a previous range of $3.41bn to $3.69bn.

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 as tablets and e-reader demand was strong. On the subject of Nokia, which analysts reckon accounts for 19-20 percent of TI's revenue, Slaymaker 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."

This story originally appeared as Nokia woes ding Texas Instruments earnings on ZDNet.com.

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