Texas Instruments Inc. has cut its third-quarter revenue estimates, but said it expects an improved bottom line.
TI said revenue for the quarter to September 30 to be in the range $3.1 billion to $3.24 billion compared with its forecast in July of $3.2 billion to $3.44 billion. It said customers are moving to reduce inventory levels to match their own growth rates, and these adjustments are most aggressive in standard products sold through the distribution channel.
However, TI upped its estimate for earnings per share to between $0.27 and $0.29 compared with its previous range of $0.26 to $0.29. It said this reflects reduced factory loadings and a lower expected accrual for profit sharing. The effective annual tax rate has been reduced from 29% to 26%, due to an increase in the estimated tax benefit for export sales.