SAN FRANCISCO-Semiconductor giant Texas Instruments Inc. has reduced its second-quarter sales forecast to a 5-percent rise instead of 7 percent, with a total restructuring charge of $55 million instead of $40 million.
The chip maker now projects sales of $2.19 million in the quarter with earnings per share of 6 cents.
TI had cut 250 jobs in its Japanese operations. The company’s announcement also cites SARS as one of the quarter’s drawbacks.
“As we noted in our April conference call, some inventory of wireless semiconductor was built in Asian markets, particularly China, toward the end of the first quarter,” commented Tom Engibous, TI’s chairman, president and chief executive officer. “That inventory, which would have been successfully worked through under normal conditions, instead stalled as demand has weakened in those markets.”
