TI, which is winding down its wireless baseband chip business, forecast first-quarter earnings per share in a range of 15 cents to 19 cents per share, below its previously announced target range of 16 cents to 24 cents per share.

It said its first-quarter revenue would range from $2.99 billion to $3.11 billion, compared with its earlier target of $3.02 billion to $3.28 billion.

The guidance missed estimates from Wall Street analysts who had expected earnings of 21 cents per share on revenue of $3.16 billion, according to Thomson Reuters I/B/E/S.

TI has previously signaled that it aims to have fully shuttered the baseband chip business -- whose biggest customer is cellphone maker Nokia -- by the end of this year.

The decline in wireless comes at a time when TI and rivals including Broadcom Corp have been dealing with an inventory correction.

Chip companies including TI and have suffered in recent quarters from a slowdown as manufacturers reduced their chip inventories due to concerns that economic weakness could hurt demand.

The company had said in January that the correction would end this quarter if it had not already ended in the fourth quarter. TI's Chief Executive Richard Templeton told investors last month that he expected a "sharp snap-back in demand once the correction was over .

TI shares fell to $32 in after-hours trading after closing down 5 cents at $32.60 on Nasdaq.