Chipmaker Analog Devices Inc. (ADI: Quote) said Tuesday after the markets closed that its first quarter profit fell 6% from last year, as revenue declined amid a weak macroeconomic environment.
The company's quarterly earnings per share, excluding items, also came in below analysts' expectations as did its quarterly revenue. However, the company gave a slightly upbeat earnings forecast for the second quarter.
"Results for the first quarter were within the range we communicated and represented a generally weak macroeconomic environment exacerbated by year-end inventory reductions at many customers," said Analog Devices CEO Jerald Fishman.
"In January, order rates began to improve across most markets and geographies and have remained strong so far this quarter. As a result, we are planning for solid revenue growth in our second quarter, in the range of 4-8% sequentially with significant operating leverage," Fishman added.
The company also said that its Board of Directors has approved a 13% increase in its regular quarterly dividend, from $0.30 to $0.34 per outstanding share of common stock. The dividend will be paid on March 12 to all shareholders of record on March 1.
Analog Devices shares are currently losing 0.87% in after hours trading after closing the day's regular trading session at $47.01, up 83 cents or 1.81%. The shares trade in a 52-week range of $34.25 to $46.70.
For the first quarter ended February 2, 2013, the Norwood, Massachusetts-based company reported net income of $131.2 million or $0.42 per share, compared to $139.4 million or $0.46 per share for the year-ago quarter.
Excluding items, adjusted earnings for the latest quarter were $0.44 per share.
On average, 24 analysts polled by Thomson Reuters expected the company to earn $0.45 per share for the first quarter. Analysts' estimates typically exclude special items.
Revenue for the first quarter fell 4% to $622.13 million from $648.06 million in the same quarter last year. Twenty-two analysts had a consensus revenue estimate of $633.08 million for the first quarter.
Looking forward, the company said it expects second quarter revenue to grow 4% to 8% sequentially, implying revenue of $647.02 million to $671.90 million. The company also forecast second quarter earnings of $0.49 to $0.55 per share.
Analysts currently expect the company to earn $0.51 per share on revenue of $665.59 million for the second quarter.
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by RTT Staff Writer
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