Chipmakers Maintain Optimistic Outlook on Analog Chip Demand (TXN, INTC, MCHP, IFNNY, ATML)
Texas Instruments (TXN), the second largest chipmaker in the U.S. behind Intel (INTC), announced that both its sales and profits will be at the high end of its prior forecast, given growth in its analog chips. TI said Q2 profits per share will be in the 60- to 64-cent range versus the company’s prior forecast for EPS of 56 to 64 cents. TI also revised its revenue outlook to the high side of its prior range. On a conference call, the company highlighted strong demand as the primary driver of the revised outlook.
The Broad-Based Semiconductor Stocks Index traded up nearly 1% on Tuesday, with Texas Instruments gaining nearly one percent and its stock ticking higher in extended trading. Elsewhere in the sector, Microchip Technology (MCHP) and Infineon Techs AG (IFNNY) both traded higher on the day.
Microchip reaffirmed its guidance after the close on Tuesday in a press release. For the first quarter ending in June, the company is expecting $318 million in revenue and 52 cents per share in profit. The forecast includes the impact of the company’s recent acquisition of Silicon Storage Technology. Analyst Susquehanna initiated coverage of Microchip early Tuesday with a Buy rating and a $33 target, citing the company’s defensive characteristics.
Elsewhere in the sector, Atmel (ATML) resolved its long-standing litigation over stock options backdating. After having settled claims against present and former employees, officers and directors,”the sole remaining defendant, the company’s former general counsel.” The agreement, subject to court approval, involves payment to Amtel by its insurers and a dismissal of all additional claims.
Investors can track the Broad-Based Semiconductor Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
|Home | Find | Research | Track | Register | My Account | Logout||Web site design by LightMix|
|© 2010 Indie research Corp. All rights reserved.|