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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (29083)	3/7/2006 11:29:46 AM
From: Donald Wennerstrom	Read Replies (2) \| Respond to of 95806

Slowdown In PC Foodchain Spells Trouble For Texas Instruments Kate DuBose Tomassi, 03.07.06, 9:46 AM ET RBC Capital Markets analyst Apjit Walia said investors may be disappointed following Texas Instruments' announcement that it has cropped the top-end of its guidance range for the first quarter of 2006, even though it also slightly raised revenue guidance. On Monday, Texas Instruments (nyse: TXN - news - people ) raised its first-quarter revenue guidance but lowered the top end of the range to between $3.22 billion to $3.35 billion, from $3.11 billion to $3.38 billion. The company slightly raised its earnings-per-share guidance to between 31 cents and 33 cents, from 29 cents to 33 cents. The company said it expects its wireless to match seasonality at the end of the first quarter. Digital Light Processing, a division of Texas Instruments, is tracking end-market consumption trends as channel inventory continues to be in good shape, according to the analyst. In addition, the High Performance Analog unit is up so far this quarter. "Our checks indicate the wireless and analog foodchain remain healthy at this point," the research analyst said. "However, we believe, given the slowdown in the PC foodchain, if one follows cyclical patterns in the semiconductor industry over the past 25 years, one might assume that growth in other semiconductor groups may start to moderate soon as well." The analyst rates Texas Instruments shares "sector perform" with a price target of $26. "We continue to recommend investors sell cyclical semiconductor stocks including Texas Instruments," he said.