Texas Instruments executives blamed trade tensions and cautious customers for an 11% decline in third quarter 2019 revenues compared to a year earlier. Revenues reached $3.77 billion.
It was the fourth consecutive quarter of declines for the company, and company officials said global trade tensions were a primary contributor.
Operating profit also declined by 18% for the quarter, while net income declined 9% to $1.6 billion.
TI customers are “far more cautious than a year ago, even 90 days ago, and have mentioned trade tensions,” Chief Financial Officer Raphael Lizardi said on a conference call.
TI’s customer buying reductions were broad-based, not just across one customer such as Huawei or one region, he added, and caused by “specifically the trade tensions. It’s been four quarters and it’s going to be longer than that.”
TI Chairman Rich Templeton reported that analog revenues declined 8% and embedded processing declined 19% over a year earlier. Communications revenues declined by 20% from the prior quarter. Going forward, the company will continue to concentrate on analog and embedded technologies and the auto and industrial markets.
The outlook for fourth quarter calls for revenues of $3.07 to $3.33 billion, he said. That range is below the fourth quarter 2018 revenues of $3.7 billion, or a 10% decline.
The company’s stock price dropped 1.8% at the end of Tuesday trading, reaching $128.57.