-Texas Instruments Inc forecast tepid quarterly revenue and missed market expectations for the third quarter on Tuesday, as the chipmaker struggles with supply chain constraints in the semiconductor industry, sending its shares down 3.8%.
The company, which makes analog and embedded processing chips used in everything from smart phones to cars, is facing a shortage of parts used in making chips, hampering its ability to cash in on growing demand.
Chief Financial Officer Rafael Lizardi said in a post-earnings call that the company was operating at a lower inventory level than customer target levels, especially on finished goods.
"We're at 112 days. Our target is 130 to 190 days. So clearly, we're well below where we want to be," Lizardi said.
Chipmakers have been cranking up production to navigate a shortage in chips that has led automakers to cut output and left electronic device makers struggling despite red-hot demand from a shift to work from home.
The company said it expects fourth-quarter revenue in the range of $4.22 billion to $4.58 billion. The midpoint fell short of analysts' average estimate of $4.44 billion, according to Refinitiv data.
Total revenue rose 22% to $4.64 billion from $3.82 billion last year, but missed expectations of $4.66 billion.
Shares of the Dallas, Texas-based company were trading at $189.50 in extended trading.
