Through The Fly's Eyes: Texas Instruments
- 5% decline in semiconductor sales sequentially
- Wireless was the primary reason for the weakness, declining 10% sequentially. Handset growth is shifting to lower end products
- Orders down 10% -- weak
- Book to bill is at .89 -- weak
- Expect revenue to decline for 1Q07 of 5% to 13% -- weak
- Growth at TI is coming from a low-cost integrated chip for low-end phones sold in emerging markets. While this business is growing, it does not offset the weakness of the higher end 3-G business.
No need to rush into TI's stock. Wait for seasonally weak summer season to look at this stock again.