Analog Devices ( ADI) raised revenue guidance for the fourth quarter and said it plans to consolidate global manufacturing operations. ADI said late Wednesday that fourth-quarter revenue will grow about 6% sequentially from the third quarter, which is higher than planned at the beginning of the quarter. Sales of both analog and digital signal processing products are expected to increase, and gross margin for the fourth quarter is estimated to increase slightly compared with the 58.1% reported in the third quarter. The company posted third-quarter revenue of $582.4 million; sequential growth of 6% would result in a fourth-quarter top line of $617.3 million. A Thomson First Call analyst survey had expected the company would post revenue of $599 million. Following the report, shares of ADI rose more than 6% in after-hours trading to $35.27 on Instinet. ADI said it plans to consolidate its wafer fabrication operations, which will result in closing its California operations and transferring production to its two largest facilities located in Massachusetts and Ireland. When completed by the end of fiscal year 2006, the consolidation is estimated to result in savings of roughly $45 million per year. This transfer will result in about $50 million of charges over the course of the next 12 months. About $23 million of these charges are for employee-related costs, of which some $20 million will be recorded in the fourth quarter. An additional $22 million will be recorded as a noncash charge for accelerated depreciation and charged to manufacturing expense during fiscal 2006. The remaining costs, which include cleanup and lease termination costs, will be charged to expense as they are incurred during fiscal 2006. As a result, the company plans to take charges of roughly $20 million in the fourth quarter of fiscal 2005, about $6 million in each of the first, second and third quarters of fiscal 2006, and about $12 million in the fourth quarter of fiscal 2006.