Tuesday, May 19, 2009

Analog Devices 2nd quarter Profit Plunges; Sees 3rd quarter Earnings Above Consensus - Update

(RTTNews) - As a percentage of sales, gross margin for the second quarter decreased to 55.1% from 61.0% in the preceding year quarter.

Inventory at the end of the second quarter of fiscal 2009 decreased about $16 million, or 5%, over the sequential quarter.

In addition, Analog Devices said that its board declared a cash dividend of $0.20 per share of common stock, which will be paid on June 17, 2009 to all shareholders of record at the close of business on May 29, 2009.

For the third quarter, the company anticipates earnings from continuing operations of $0.17 to $0.19 per share, and revenue to be approximately flat on a sequential basis. The Street currently expects the company to report earnings of $0.11 per share for the third quarter.

Among others in the industry, Dallas, Texas-based Texas Instruments (TXN: News ), the world's second largest maker of mobile phone chips, reported that first quarter profit plunged by 97% over last year, hurt by higher restructuring charges, and lower revenue in all segments.

Another peer, Geneva, Switzerland-based STMicroelectronics N.V. (STM: News ), Europe's biggest chipmaker, reported a net loss for the first quarter that widened from the same period last year, hurt by significant weakness in the industry, particularly in the wireless, automotive, and computer peripherals sector indicated with a 33% decline in revenues.

Analog Devices closed Tuesday's regular trading session at $20.58, up 68 cents or 3.42%, on a volume of 7.45 million shares. In after-hours, the shares further gained $1.62 or 7.87%. The stock has been moving in a range of $15.29 - $36.35 for the past 52 weeks, with a three-month average volume of about 6.33 million shares.

source: http://www.rttnews.com/Content/TopStories.aspx?Node=B1&Id=954490&Category=Top%20Stories&pageNum=2541_4272_2

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