TI forecasts flat Q3
Texas Instruments is expecting a flat Q3, traditionally the industry’s strongest quarter. Last week Intel forecast 6% growth in Q3.
“We clearly have less demand scheduled in September right now than we would normally have at this stage in the quarter,” says TI CFO Kevin March.
TI says that the vast majority of its products are on six week or less lead-times, and with its distie inventoryat 6 weeks and under-utilised manufacturing capacity, any uptick in demand would feed through to TI’s bottom line very quickly.
TI’s Q2 sales were $3.3bn. Q3 is forecast at $3.2bn – $3.4bn. Q2 gross profit was $1.65bn – nearly 50% of revenues. Inventory has increased to 101 days. The Q2 book-to-bill was 1.02. TI shaved $100m off its original 2012 capex budget of $2bn.
TI is the process of closing two fabs, one in Houston, the other in Hiji, Japan.