Analog Devices' Profit Slumps

Revenue edges higher from a year earlier.
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Analog Devices'

(ADI) - Get Report

profit fell in its fiscal fourth quarter, as restructuring charges weighed on the chipmaker's results.

ADI earned $97.9 million in net income, or 31 cents a share, in the three months ended Nov. 3, down from net income of $138.4 million, or 39 cents a share, at this time last year.

ADI said it incurred $25 million in charges from planned operating expense reductions and the cost of upgrading a chip manufacturing facility in Ireland, as well as $4.4 million from a one-time tax adjustment.

Excluding those charges, ADI said it earned 39 cents a share.

Analysts polled by Thomson Financial were looking for 39 cents a share, though it was not clear which charges were factored into that estimate.

ADI reported $649 million in fourth-quarter revenue, up slightly from $644 million a year ago.

But ADI said that figure excluded $50 million from discontinued operations, as the company moves forward with the divestiture of several businesses.

In September, ADI signed a definitive agreement to sell its wireless handset chip business, a transaction that ADI expects to close in the current quarter.

Analysts were looking for $692 million in sales.

For the first quarter, the company said it expects sequential revenue growth from continuing operations of -2% to + 2%, suggesting a range of $636 million to $662 million.

Excluding gains from the sales of businesses, ADI expects to earn 38 cents to 42 cents a share.

Analysts were expecting revenue of $697 million and earnings of 40 cents a share, but it wasn't clear if those estimates reflect divestitures.

Shares of ADI were up 1%, or 34 cents, at $31.56 in extended trading Tuesday.