Analog Devices Cuts Revenue Outlook

The company cites a decline in cellular handset demand.
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Analog Devices (ADI) - Get Report cut its fourth-quarter revenue estimate due to a decline in cellular handset customer sales.

The company said Tuesday that it now expects revenue for the fourth quarter ending Oct. 28 to be about $640 million to $645 million -- about 3% below third-quarter revenue. ADI had earlier said it expected fourth-quarter revenue to be about flat with third-quarter results.

ADI said it believed that in the fourth quarter cellular handset customers depleted inventory they had accumulated during the immediately prior quarter. ADI expects revenue from customers in all other end markets will be up slightly in the fourth quarter on a sequential basis, as a result of growth in sales to the broad base of high-performance analog and general-purpose digital signal processing customers.

Shares of ADI were off 50 cents, or 1.7%, to $29.16 in after-hours trading.