Semiconductor maker Analog Devices (ADI) this afternoon reported fiscal Q4 revenue and earnings per share short of analysts’ expectations and forecast the current quarter lower as well.
Revenue in the three months ended in October fell 7%, year over year, to $716.1 million, yielding EPS of 60 cents.
Analysts on average were expecting $727 million and 63 cents.
For the current quarter, the company sees $644 million to $680 million, and EPS of 44 cents to 51 cents. Analysts have been modeling $705 million and 59 cents.
Analog shares are up 13 cents, or 0.4%, at $34.47 in late trading.
CEO Jerald Fishman remarked that the 6% quarter-to-quarter decline in revenue was attributable to a slowdown in the industrial and communications markets for chips, but that consumer and automotive escorts “continued to be strong.”
“During the fourth quarter, we also reduced production levels,” said Fishman, “which reduced both our internal and channel inventories despite lower revenue, and resulted in lower gross margins [...] Order rates slowed but appeared to stabilize and our backlog decreased from the prior quarter.”
The company will reduce production this quarter as customers reduce their inventory levels, he said.
Analog management will host a conference call with analysts at 5 pm, Eastern, and you can access it here.
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