NORWOOD, Mass. (Dow Jones)--Analog Devices Inc. (ADI) warned that it report second quarter revenue and earnings below analysts expectations because of the continuing slow down in orders and "significant order cancellations and backlog adjustments that have continued throughout the quarter."
In a press release Thursday, Analog Devices said it expects to report second quarter pro forma earnings per share of 31 cents to 33 cents and revenue between $600 million and $620 million.
Analysts surveyed by First Call were expecting second quarter earnings of 41 cents a share on revenue of $714.57 million.
Revenue between $600 million and $620 million, for the second quarter ending May 5 is 3% to 7% higher than a year ago but down 20 to 22% sequentially. At this revenue level, the second quarter's operating margin is expected to be about 25% of sales.
Jerry Fishman, president and chief executive of Analog Devices, said in a press release, "We remain cautious, given the still high, albeit declining, order cancellations rates, continued backlog churning and uncertainties about end-market demand for the balance of the year. We currently believe that third-quarter revenues could be approximately 5% below those for the second quarter. We also believe that the third quarter could be our trough quarter, with revenues showing modest sequential growth in the fourth quarter."
A 5% sequential decline would put Analog Devices' third quarter revenue between $570 million and $589 million. Analysts surveyed by First Call were expecting revenue of $720 million in the third quarter and $730 million in the fourth quarter.
Analog Devices Inc. said it expects second quarter operating expenses "will likely decline a few percent compared to the first quarter."
The company expects inventories at the end of the second quarter to be flat or down slightly from the first quarter, and second quarter operating cash flow will be about $125 million.
Analog Devices makes precision high-performance linear, mixed signal and digital integrated circuits.
++
At least from the market reaction so far, this doesn't seem to matter too much.
JM - Thanks for the comments. Lots of others out there lurking too. Any contributions, like FA or TA comments on ADI would be welcome additions to this thread.
Jim |
