Analog Devices 4Q Net Up 47%, Sees 1Q Below Street Outlook
For the quarter ended Nov. 1, the semiconductor company reported net income of $143.9 million, or 49 cents a share, up from $97.9 million, or 31 cents a share, a year ago.
Earnings from continuing operations improved to 49 cents a share from 44 cents.
Revenue increased 6% to $660.7 million.
In August, the company forecast earnings from continuing operations of 44 cents to 46 cents a share on revenue growth of 6% to 9%. Analysts polled by Thomson Reuters were looking for earnings of 43 cents on 1% revenue growth to $655 million.
Gross margin rose slightly to 61.1%, from 60%. In August, the company said it expected gross margin to be about 61%.
Industrial revenue, or 47% of the company's total, decreased 4.3%, while communications revenue surged 34%. Revenue in the low-margin consumer business was down 11% amid revenue declines in all application areas, while computer revenue fell 8.2% on an overall weak personal computer market worldwide.
Among Analog Devices' products, analog revenue increased 6.3% and accounted for 90% of total revenue by product type.
Looking ahead, the company expects fiscal first-quarter earnings from continuing operations of 22 cents to 23 cents, excluding restructuring charges, on a revenue decline of about 20%. Analysts forecast per-share earnings of 35 cents on a 2% decline in revenue.
President and Chief Executive Jerald Fishman said the company would reduce spending and align its cost structure to meet demand, which has been altered by the global credit crisis.
Fishman said the actions were expected to provide savings in the fiscal first quarter, with additional savings and margin benefits to be realized in subsequent quarters.
Earlier this month, Morgan Stanley raised its investment rating on Analog to overweight from equalweight, citing Analog Devices' above-average free cash flow field and the company's ability to maintain gross margins in the low-60% range during a period of declining revenue.
Shares of Analog were down 2.3% to $17.75 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com
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(END) Dow Jones Newswires
November 24, 2008 17:03 ET (22:03 GMT)
Publié le 24 novembre 2008 Copyright © 2008 Dowjones
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