Analog Devices Posts Lower 2Q Profit, Sales

NORWOOD, Mass. (AP) — Chip designer Analog Devices Inc. posted sharply lower profit and sales for its fiscal second quarter Tuesday amid the economic turmoil that has dampened global chip demand.

Still, the company said the results were better than planned, while the quarter's costs were lower than expected.

For the three months ended May 2, the company earned $51.8 million, or 18 cents per share, down 61 percent from $133.1 million, or 45 cents per share, in the same period a year earlier.

The latest quarter's results were weighed by a restructuring charge of 3 cents per share. Stripping out one-time items, the company earned 21 cents per share.

Revenue fell 27 percent to $474.7 million from $649.3 million.

Analysts, on average, were expecting a profit of 9 cents per share on sales of $427.2 million, according to a poll by Thomson Reuters. Analyst estimates typically exclude one-time items.

The results "were better than planned as we benefited from increased sales to communications infrastructure and consumer customers and a general abatement of inventory reductions by our customers," said Jerald G. Fishman, president and chief executive, in a statement.