* TI sees Q3 EPS $0.56-$0.60, rev $3.23 bln-$3.37 bln
* Prev view EPS $0.55-$0.65, rev $3.4 bln-$3.7 bln
* Says weakness broad-based, due to economy, not inventory
* TI shares fall almost 1 percent (Adds executive and analyst comment, updates share price)
By Sinead Carew
NEW YORK, Sept 8 (Reuters) - Texas Instruments TXN.N said its third-quarter earnings and revenue would be worse than already low expectations as concern about an economic slowdown is stifling demand for products that use its chips.
TI, which had already warned in July of a modest quarter, said on Thursday demand had weakened further across “a wide range of products, markets and customers.”
“Macroeconomic weakness is resulting in lower demand from consumers and enterprises,” Ron Slaymaker, TI’s head of investor relations, told analysts on a conference call.
He ruled out any inventory adjustments as a reason for slowing demand.
The executive noted that TI is cutting expenses such as variable compensation to stop profits from falling as quickly as sales. Because the shortfall is economy related, Slaymaker said he had no way of knowing when demand would improve.
“The only solace to take away from this is that it’s not TI specific,” said Williams Financial analyst Cody Acree who cited warnings about weak demand across the semiconductor industry.
Investors also took the news in their stride as rivals such as Fairchild Semiconductor FCS.N had already signaled a weak market by cutting its revenue guidance earlier this week. [ID:nL3E7K62AE]
Also on Thursday another technology company, Corning Inc GLW.N, cut its forecast for glass demand, citing sluggish television sales. [ID:nL3E7K82A5]
Acree said he was encouraged by Slaymaker’s mention on the call that TI’s applications chips for cellphones were selling well despite the overall weak demand and competition from rivals such as Qualcomm Inc QCOM.O and Nvidia Corp NVDA.O.
TI, which makes chips for products ranging from cellphones to cars, now expects quarterly earnings per share of 56 cents to 60 cents compared with its previous expectation for 55 cents to 65 cents.
It forecast revenue of $3.23 billion to $3.27 billion compared with its earlier target for $3.4 billion to $3.7 billion. The new forecasts missed Wall Street expectations for earnings of 59 cents per share on revenue of $3.5 billion, according to Thomson Reuters I/B/E/S.
“It’s probably a bit lower than people were thinking,” said MKM Partners analyst Daniel Berenbaum. “Demand is slow.”
TI shares fell just 25 cents or just under 1 percent to $25.55 in extended trading after closing at $25.80 on the New York Stock Exchange. Its stock has already fallen about 18 percent since it reported its results in late July. (Reporting by Sinead Carew; editing by Richard Chang)