Analog Devices Lowers 1Q View On Weak Demand, Inventory Cuts
21 January 2009 - 9:22AM
Dow Jones News
DOW JONES NEWSWIRES
Analog Devices Inc. (ADI) cut its fiscal first-quarter guidance
because of weak demand from consumers and customers' cuts in their
inventories.
Shares fell more than 6% after hours, though recently they were
back up to $18.77, unchanged from the Tuesday closing price. The
stock price has fallen 48% since its 52-week high in May.
The announcement is one of a long line of chip makers'
predictions of large drops in sales as the market for computers and
other consumer electronics soured amid a sharp drop in
discretionary spending last fall.
Analog Devices now expects earnings from continuing operations
of 15 cents to 17 cents a share, excluding restructuring charges,
and a revenue decline of 25% to 30% sequentially.
In November, the semiconductor maker had predicted earnings from
continuing operations of 22 cents to 23 cents a share, excluding
restructuring charges, and revenue down about 20% sequentially.
Analysts' latest estimates were for per-share earnings of 22
cents on revenue of $520.7 million, according to a poll by Thomson
Reuters.
Analog Devices expects to report fiscal first-quarter results
Feb. 18.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com
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