TI had Q1 net income of $1.17 billion compared with $1.22 billion in Q1 2019.

Revenue declined to $3.33 billion from $3.59 billion in Q1 2019.

Analysts were expecting the company to report revenue of $3.17 billion.

Embedded processing revenues declined 18% y-o-y while analogue revenue fell 2%.

“With a COVID-19 recession likely upon us, and with reduced visibility of customer demand, we are using the 2008 financial crisis to model our second-quarter outlook,” said TI CEO Rich Templeton (pictured).

The company forecasts Q2 revenue of $2.61 billion to $3.19 billion.

“I think customers are just still processing through what their customers are telling them and we will see that play through,” said Templeton.

Templeton said he does not expect any long-term structural changes in the chip industry due to the pandemic.

Supply chain disruptions increased customer concerns about being able to secure supply, leading to a demand upswing in early March from most markets, TI said.