TI cuts third-quarter revenue and profit forecast

July 27, 2023 /SemiMedia/ — In line with Reuters, Texas Devices (TI) forecast that income and revenue within the third quarter of 2023 shall be decrease than the goal as a result of gradual restoration of demand in the long run market and the cancellation of orders by clients.

Whereas TI topped expectations for income and revenue within the second quarter, inflation and rising rates of interest ate into spending throughout segments, together with its main markets, industrial unit, which accounts for about 40% of its income. At the moment, all finish markets besides automotive are weak.

Dave Pahl, TI’s director of investor relations, mentioned: “Order cancellations stay at excessive ranges, and we consider clients are persevering with to cut back stock to higher match their wants.”

“As of the top of fiscal 2022, the Chinese language market accounts for about half of gross sales, so the Chinese language market has the best affect on TI’s enterprise,” the analyst mentioned.

Regardless of the demand disaster, Texas Devices mentioned it could proceed to extend provide, even on the expense of revenue margins, to assist long-term demand and create geopolitically dependable capability.