Texas Instruments’ Stock Falls
NEW YORK (AP) _ The stock of Texas Instruments Inc. fell Wednesday after the chip-maker narrowed its forecast for third-quarter earnings.
Texas Instruments said it expects third-quarter earnings of 20 cents to 22 cents a share, below its July estimate of 19 cents to 23 cents a share.
In narrowing its earnings forecast to the center, not the top, of previous expectations, the Dallas-based company disappointed analysts and investors who had expected a more robust forecast after Intel Corp. last week reported strong sales.
The shares closed down $1.90, or 7.5 percent, at $23.42 on the New York Stock Exchange.
The earnings estimate includes a contribution of 13 cents a share from the company’s previously announced sale of 24.7 million shares of Micron Technology Inc., as well as a charge of about $23 million for the company’s acquisition of Radia Communications Inc., which was completed July 30.
Analysts surveyed by Thomson First Call were expecting third-quarter earnings, excluding items, of 9 cents a share.
Texas Instruments also forecast third-quarter revenue of $2.39 billion to $2.49 billion, compared with its previous forecast of $2.29 billion to $2.49 billion.
Analysts were calling for third-quarter revenue of $2.4 billion.
The company, which has 2002 revenue of $8.38 billion and is one of the world’s largest makers of computer chips, attributed the stronger revenue forecast to improved semiconductor sales.
Total revenue from semiconductors is now pegged at $1.99 billion to $2.07 billion, up from its previous range of $1.89 billion to $2.05 billion.
Separately Intergraph Corp. said Wednesday that Texas Instruments will pay it $18 million to settle a patent dispute.
Intergraph, a Huntsville, Ala., software and services company, said Texas Instruments had agreed to license three of Intergraph’s patents on parallel computing.
In April last year Intel Corp. agreed to pay Intergraph $300 million to settle similar claims.