NEW YORK (Reuters) - Texas Instruments posted revenue slightly below analyst expectations due to a shortfall from one key mobile phone customer, sending the chip maker's shares down almost six percent.
While TI said current quarter results could be better than Wall Street expectations, Chief Financial Officer Kevin March said revenue in the second quarter was hurt by one customer ordering fewer chips than expected.
"They did not pull the inventory we'd expected in the quarter," said March without disclosing the customer's name.
TI's biggest wireless chip customer Nokia
TI, a maker of chips for everything from cellphones to manufacturing gear, saw its shares fall almost six percent after its earnings report.
Revenue rose to $3.496 billion from $2.46 billion in the same quarter last year but was below analyst expectations for $3.52 billion, according to Thomson Reuters I/B/E/S.
TI shares fell to $24.06 in late trade after closing up 3 percent at $25.55 before the news on New York Stock Exchange.
Analysts said investors were likely spooked by weaker than expected revenue from tech giant IBM
It's both a good quarter and a pretty significant guide up, better than the Street," said Adam Benjamin, an analyst for Jefferies & Co. "Right now the market is definitely jittery. I think in general IBM is affecting the market."
Gleacher & Co analyst Doug Freedman also said that investors appeared worried that TI ended the quarter with lower revenue than they had expected.
"The guidance looks pretty good, the market seems to be looking past the guidance and seems more concerned that this starting point is a little lower than people had hoped."
TI's second-quarter profit rose to $769 million, or 62 cents per share in line with analyst expectations and better than its $260 million, or 20 cents per share profit in the same quarter last year.
On average, analysts expected earnings of 62 cents per share on revenue of $3.52 billion, according to Thomson Reuters I/B/E/S.
The company forecast third-quarter earnings per share of 64 cents to 74 cents on revenue of $3.55 billion to $3.85 billion.
Analysts on average were expecting earnings of 64 cents per share on revenue of $3.6 billion, according to Thomson Reuters I/B/E/S.
TI's March said the company was expecting broad-based strength in demand to push up revenue and earnings in the current quarter.
"Underlying growth in demand plus our market share gains seem to be more than offsetting any concerns people would have that we would see orders decline as customers start to pull their (order) lead times in," March said.
(Reporting by Sinead Carew and Alex Dobuzinskis; editing by Bernard Orr)
