UPDATE: Texas Instruments Raises Bottom End Of 1Q Guidance

Texas Instruments Inc. (TXN) raised the bottom end of its first-quarter forecast as the period is coming to a close, helped by growth across several markets, including analog and embedded chips.

"In general, we expect all of our segments to grow sequentially, with the exception of wireless," said Ron Slaymaker, TI vice president and head of investor relations.

But investors weren't overly impressed, with shares recently down 0.8% at $24.49 in after-hours trading. The stock has gained nearly 70% over the past year.

The industrial sector is expected to be one of the best-performing in the current quarter, Slaymaker said, with communications infrastructure, computers, the automotive market and high-definition televisions also showing strength.

TI has focused recently on growing its analog and embedded processing units, while winding down the part of its wireless business selling baseband chips used in cell phones. The company plans to exit the increasingly competitive baseband market by the end of 2012.

In the current quarter, the chip maker now expects earnings of 48 cents to 52 cents on revenue of $3.07 billion to $3.19 billion. It previously predicted earnings of 44 cents to 52 cents and revenue of $2.95 billion to $3.19 billion.

Analysts had been expecting, on average, earnings of 49 cents a share on revenue of $3.08 billion, according to Thomson Reuters.

TI in January reported its fourth-quarter profit soared on stronger sales and higher margins, aided by a return of demand from industrial markets. At that time, it predicted first-quarter results could surpass the fourth quarter, rather than suffer from the typical seasonal slowdown.

-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@dowjones.com

(Kathy Shwiff contributed to this article.)

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