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Technology Stocks : Atmel - the trend is about to change -- Ignore unavailable to you. Want to Upgrade?

To: tech101 who wrote (13229)	12/8/2003 11:00:17 PM
From: tech101	Read Replies (1) \| Respond to of 13565

TI Raises Outlook, Cites Strong Demand Monday December 8, 7:51 pm ET Reuters By Jim Christie SAN FRANCISCO (Reuters) - Texas Instruments Inc. (NYSE:TXN - News), the world's top supplier of microchips for cellular phones, on Monday raised its forecasts for the current quarter, citing continuing strong demand for its products. Analysts said the company's forecast that both sales and earnings could top earlier expectations provided further evidence of a broader recovery in consumer demand for technology products. Shares of the Dallas-based company rose about 1.5 percent in after-hours trade, recouping losses made during regular trade on the New York Stock Exchange (News - Websites) . The company said it now expected fourth-quarter revenue of $2.64 billion to $2.765 billion and earnings per share of 25 cents to 27 cents. Excluding a gain of 7 cents per share from its previously announced sale of shares of Micron Technology Inc. (NYSE:MU - News), Texas Instruments' earnings for the quarter would be 18 cents to 20 cents per share. On that basis, the company had said in October it expected fourth-quarter sales of $2.49 billion to $2.70 billion with earnings in a range of 14 cents to 19 cents per share. Analysts had on average expected fourth-quarter revenue of $2.64 billion and earnings of 17 cents per share, excluding investment gains, according to Reuters Research, a unit of Reuters Group Plc. The company's revised outlook for its semiconductor revenue was especially strong, and pointed to strength beyond its wireless business, analysts said. "People were hoping to see higher numbers there," said Ren Zamora, an analyst with Chicago-based Loop Capital Markets. "It's very important to see the strength on the semi-side and across a broad base...It shows signs that the consumer market is showing strength in addition to wireless." Analyst David Wu of Wedbush Morgan Securities said TI's outlook for its semiconductor revenue indicates there is a "broad-based industrial recovery out there...Everybody's business is getting better and they want some more inventory." Demand has been especially strong for chips used in new high-end cell phones. Qualcomm Inc. (NasdaqNM:QCOM - News), a TI rival in the wireless market, last week raised its quarterly profit and sales forecasts, citing heightened demand for its microchips that run popular new cell phones with color screens and digital cameras. TI said fourth-quarter semiconductor revenue is expected to be between $2.33 billion and $2.44 billion, compared with a prior range of $2.185 billion to $2.365 billion. Revenue from sensors and controls was expected to be between $245 million and $255 million, compared with the prior range of $235 million to $255 million. Revenue from educational and productivity solution products is expected to be between $70 million and $75 million, compared with the prior range of $70 million to $80 million, the company said. Shares in the company rose in after-market trade to $28.65 from their close of $28.24 on the New York Stock Exchange. The stock has gained more than 66 percent since early July when it touched $17.21.