Texas Instruments' sales slip in Q1

Analog product sales fell 14% to $3.3 billion, embedded processor sales grew 6% to $832 million and other products sales declined 16% to $258 million.

"During the first quarter we experienced weakness across our end markets with the exception of automotive," said CEO Haviv Ilan (pictured).

He added, "Our cash flow from operations of $7.7 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $4.4 billion and 23% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-mm production.

There also concerns that overstocked customers will either defer or cancel orders. Slowing demand in the semiconductor market has also impacted the average selling price of devices.

Texas Instruments is forecasting revenue in the second quarter in the range of $4.17 billion to $4.53 billion.