Recently, Texas Instruments ( TXN - Analyst Report ) or "TI" narrowed its revenue and earnings expectations for the fourth quarter of 2012.

The chipmaker now expects sales of $2.89–$3.01 billion versus its previous guidance of $2.83–$3.07 billion. The earnings outlook has also been trimmed to 5–9 cents from the previous guidance of 23–31 cents.

The current earnings guidance includes 21 cents of charges associated with previously announced restructuring in the company's Wireless segment.

Recently, TI announced its restructuring program wherein the company plans to cut 1,700 jobs worldwide in order to reduce operational costs, shut down its wireless chip operations, and concentrate on embedded solutions like automobiles, industrial and other non-consumer markets, which have a longer life cycle. The company expects to incur total charges of approximately $325 million in the fourth quarter.

It is encouraging that despite the weak macro environment, the company has not lowered the midpoint of the revenue guidance. With game consoles and e-books doing well for TI, the company cited weakness in wireless infrastructure and industrial markets.

In order to retain its position in the world, it is imperative that TI continues to undertake various initiatives and develop new products, keeping in mind the interest of the organization in both the long and short run. We believe the restructuring action will bring in stability and steady earnings growth in the near future.

Texas Instruments is one of the largest suppliers of analog and digital signal processing (DSP) integrated circuits. In the third quarter, TI posted decent numbers, with both revenue and earnings surpassing our expectations. The company’s compelling product line-up, increasing differentiation in its business, restructuring activities and lower-cost 300mm capacity should drive earnings in the longer term.

Currently, Texas Instruments has a Zacks #3 Rank (Hold). We note that its rivals, Maxim Integrated Products, Inc ( MXIM - Analyst Report ) , Analog Devices, Inc ( ADI - Analyst Report ) , Broadcom Corp ( BRCM - Analyst Report ) , and Intel Corp. ( INTC - Analyst Report ) also carry a Zacks #3 Rank (Hold).