Andre Yoskowitz
9 Jun 2011 21:07
Citing a huge drop in sales from Nokia, Texas Instruments was forced to cut its revenue and earnings forecasts last night.
Outside of the mobile phone business, however, TI said all other sectors of their business were performing up to expectations.
TI warned that revenue from its wireless baseband chips were hurt thanks to Nokia, its biggest client, which continues to struggle and has fallen so far that it has become the source of takeover speculation.
The numbers will prove to be a temporary blip, regardless, as TI has already said it will phase out its baseband business by the end of next year.
While baseband was still a significant amount of overall revenue (6 percent), it was a steep fall from the 12 percent it represented last quarter.