WASHINGTON (dpa-AFX) - Chip-maker Analog Devices Inc. (ADI), Tuesday said its second-quarter profit dropped from a year ago, as revenues declined 15 percent on lower demand at its industrial, consumer and communications segments.
Nevertheless, Analog Devices' earnings and revenues for the quarter surpassed Wall Street expectations. Moving ahead, the company detailed a third-quarter outlook that is expected to fall short of current Street estimates.
This is for the third consecutive quarter that the Norwood, Massachusetts-based company has posted a decline in profit. The semiconductor industry has been going through a slump, as economic uncertainties have made customers reduce their inventories.
Meanwhile, Chief Executive Jerald Fishman said, 'Order rates and backlog also grew compared to the prior quarter, which leads us to plan for continued sequential growth of revenue in the third quarter.'
Second quarter revenues grew 4 percent sequentially.
Gross margins for the quarter dropped 240 basis points to 65.2 percent from 67.6 percent in the same quarter a year ago. But, on a positive note, gross margins improved 200 basis points sequentially.
Analog Devices, which competes with Broadcom, Microchip Technology and Cirrus Logic, said its revenues for the quarter slumped to $675.09 million from $790.78 million last year. Twenty-two analysts on a consensus estimated revenues of $665.70 million for the quarter.
Revenues from industrial segment, which represents almost half of total revenues, slid 16 percent, while consumer revenues dropped 20 percent from last year. Communications market revenues fell 22 percent, while automotive unit gained 10 percent, year-over-year.
Analog Devices second-quarter net income declined to $162.90 million or $0.53 per share from $241.83 million or $0.78 per share last year. Adjusted earnings for the prior year quarter was $0.75 per share, while there were no adjustments this quarter.
On average, 23 analysts polled by Thomson Reuters expected earnings of $0.51 per share for the quarter. Analysts' estimates typically exclude special items.
Looking forward to the third quarter, the company expects earnings in a range of $0.54 to $0.58 per share. Revenue is estimated to increase sequentially by about 1 to 4 percent. Analysts currently expect earnings of $0.58 per share on revenues of $698.56 million for the third-quarter.
Analog Devices declared a dividend of $0.30 per share, payable on June 12 to shareholders of record on June 1.
ADI closed Tuesday on the NYSE at $35.80, down $0.07 or 0.20%, on a volume of 2.6 million shares. In after hours, the stock lost $0.80 or 2.23%.
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