(RTTNews) - Chipmaker Analog Devices Inc. (ADI: News ) is slated to release its fourth-quarter earnings results after the market closes Monday. The Norwood, Massachusetts-based company anticipates earnings from continuing operations for the quarter to be about $0.24 to $0.26 per share, and revenue between about $510 million and $530 million.

On average, 21 analysts surveyed by Thomson Reuters expect the company to post earnings of $0.26 per share for the quarter, with estimates ranging between $0.25 and $0.28 per share. Analysts' estimates typically exclude special items. Revenues for the quarter are estimated to be $523.84 million, representing a 20.7% fall from last year.

In the same quarter a year ago, the company had reported net income of $143.87 million or $0.49 per share, on revenues of $661 million.

While issuing the fourth-quarter forecast back in August, Analog Devices' President and Chief Executive Officer Jerald Fishman stated, "There are near-term indications that business conditions are improving. Order rates strengthened throughout the third quarter and have remained strong during the first two weeks of August. Our book-to-bill ratio for the third quarter, as measured by end customer bookings, was above one, and our fourth quarter opening backlog was up from last quarter."

Fishman added, "While we plan to continue to tightly manage inventory levels, we expect a small increase in utilization, which should result in a gross margin in the fourth quarter of approximately 55%. In addition, we plan to continue to closely manage operating expenses and expect them to increase slightly by approximately 1% to 2% in the fourth quarter."
For the fiscal year 2009, Wall Street analysts estimate the company to post earnings of $0.88 per share, with expectations between $0.84 and $0.90 per share, while revenues are projected to be $1.97 billion, representing a 23.8% decline from last year.

For 2008, Analog Devices' net income was $786.28 million or $2.65 per share, and income from continuing operations was $525.18 million or $1.77 per share, on revenues of $2.58 billion.

According to Semiconductor Industry Association, or SIA, President George Scalise, "Amid signs that we are in the early stages of recovery in the global economy, semiconductor sales continue to reflect normal seasonal patterns. Sales are running well ahead of the worst-case scenarios projected early in the year, and we are optimistic that total sales for 2009 will be better than our mid-year forecast. The new forecast is brighter than our earlier projections, reflecting an improving global economy. Unit sales of key demand drivers - including PCs and cell phones, which together account for about 60% of semiconductor demand - have been stronger than previously predicted. We remain cautiously optimistic for the longer term. The current forecast is closely tied to projections of continuing improvement in the worldwide economy."

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