Analog Devices' Profits Drop 86% - TheStreet

Analog Devices

(ADI) - Get Report

reported an 86% drop in net income on Thursday, but the company beat lowered estimates by a penny and saw stronger bookings throughout the quarter.

The integrated circuit manufacturer said it earned $14.4 million, or 4 cents a share, in the third quarter, compared with net income of $102.5 million, or 29 cents a share, in the year-ago quarter. On a pro forma basis excluding goodwill and restructuring charges totaling $27 million, the company earned 13 cents a share, at the upper end of the company's previous guidance, compared with 31 cents per share a year ago.

According to Thomson Financial/First Call, analysts had been expecting the company to earn 12 cents a share on a pro forma basis.

Second-quarter revenue was $413 million, down from $601 million a year ago, but up 5% sequentially. Wall Street was looking for revenue of $409.8 million.

In a press release, Analog Devices said its sequential revenue growth was due to stronger bookings throughout the quarter, with the largest growth in consumer, computer, and wireless communication. The company said its new products introduced in the last 18 months accounted for "virtually all of the second-quarter's revenue increase."

Going forward, the company said that, based on its bookings growth, it now expects to see third-quarter EPS of 15 cents on revenue of $445 million. Wall Street is looking for 15 cents on revenue of $434 million.

Shares of ADI closed at $39.48 Thursday before the earnings release.