Shulou(Shulou.com)11/24 Report--

Thank you CTOnews.com netizen Mr. Aviation for the clue delivery! Beijing time on July 26 morning news, local time Tuesday, the world's largest analog semiconductor device manufacturer Texas Instruments released the latest earnings report, the company's third-quarter performance outlook is relatively weak, showing that some key semiconductor device market demand downturn is still continuing.

Financial data show that in the second quarter, Texas Instruments revenue of 4.53 billion US dollars (currently about 32.344 billion yuan), down 13% year-on-year, but exceeded analysts 'expectations of 4.35 billion US dollars. Earnings per share were $1.87 in the second quarter, down significantly from $2.45 a share in the second quarter of last year.

Texas Instruments forecast third-quarter revenue of $4.36 billion to $4.74 billion, the median of which was lower than the average Wall Street analyst estimate of $4.59 billion. The bad news caused TI's share price to plummet 4 percent in after-hours trading.

Texas Instruments is considered a "barometer company" for the semiconductor market, and its third-quarter outlook also indicates that the semiconductor industry as a whole is still struggling.

TI has the longest customer list and the most extensive product catalog among its semiconductor peers, and its earnings and performance outlook reflect the health of many areas of the macro economy. Among them, Texas Instruments 'largest revenue segment comes from electronic device sales to industrial machinery and vehicle manufacturers.

The company's analog chips, while simple in function, are important in industrial fields, such as chips that measure button pressure or chips that detect temperature changes. The company's chips are also used to control motors in a variety of scenarios (from space equipment to household appliances), and these analog chips do not require the most advanced manufacturing processes compared to chips in other digital products.

Texas Instruments CEO Haviv Ilan said that in the second quarter, automotive chips became a bright spot, but sales of other products were sluggish."As in the previous quarter, we experienced sluggish demand in all end markets except automotive. "

On the analyst call, TI executives said customers in industries other than the automotive industry continued to cut chip orders and wanted to consume existing inventories first.

Rafael Lizard, chief financial officer of Texas Instruments, said customer cutbacks led to an increase in Texas Instruments 'own chip inventory, which has climbed to 207 days and will continue to rise in the third quarter.

Lizard also said that unlike other chip manufacturers, Texas Instruments analog chips have a long shelf life (even up to 10 years), so the current high inventory can solve the sudden increase in market demand in the future.

In an interview, Lizard said: "Our inventory chips can be stored for a long time. These chips can be stored for 10 years, and they can be taken out completely new. "

Texas Instruments said that the number of customer cancellations is still at a high level, which also indicates that customers are cautious about future business prospects.

For the third quarter, TI expects earnings per share to be between $1.68 and $1.92. For reference, analysts expect earnings of $1.90 per share.

Texas Instruments shares rose 1.2 percent in intraday trading and 13 percent year-to-date, a significantly lower gain than other semiconductor giants. It is reported that the stock prices of major semiconductor manufacturers have risen sharply due to market expectations that computer sales will rebound this year.

Like other semiconductor manufacturers, TI is currently building new factories to increase capacity. In the long run, the semiconductor industry as a whole is still optimistic about future demand and believes that chips will play a more important role in the economy.

Capital expenditure will drag down TI's profits. Texas Instruments executives said Tuesday that the company is building a new plant near its Dallas headquarters, and that rising expenses will affect profit figures until the plant is completed and ready for production.

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