Analog Devices Takes Lumps

The company previews a third-quarter revenue miss.
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Circuit maker

Analog Devices

(ADI) - Get Report

fell Wednesday after previewing a third-quarter revenue shortfall.

Citing weak sales to Asian wireless manufacturers, the Norwood, Mass., company forecast third-quarter earnings of 31 cents a share on sales of $580 million to $585 million. Analysts surveyed by Thomson First Call were expecting earnings of 31 cents a share on sales of $617 million.

"Although the communications market was generally weak, the revised outlook is primarily related to lower sales of GSM/GPRS chipsets to Asian customers who continue to struggle against increased global competition," the company said. "As these customers begin to supply more feature-rich phones this fall, we believe that our wireless handset revenue will begin to recover."

ADI's other segments performed largely as expected in the quarter, with sequential growth in industrial end markets offset by declines in automatic test equipment and automotive sales. The company said analog product revenue was roughly flat from the second quarter, in line with seasonal patterns.

The stock was recently down $2.02, or 5%, to $38.70.