Updated from 4:24 p.m. EST
Maxim Integrated Products
posted fiscal second-quarter results that exceeded Wall Street's expectations, but the analog-chip maker said orders fell sequentially because of excess inventory.
The company's shares slipped 1% to $39 in late trading, erasing gains logged during Tuesday's regular session.
The Sunnyvale, Calif.-based company reported fiscal second-quarter net income of $144.6 million, or 42 cents a share, on sales of $436.1 million. During the same quarter last year, Maxim earned $98.5 million, or 28 cents a share, on sales of $338.1 million.
Analysts on average had expected earnings of 41 cents a share on sales of $433 million, according to Thomson First Call.
Orders decreased 6% sequentially to $353 million, and the company stated that excess inventory in the distribution channel should be consumed in the "next one or two quarters."
For the third quarter, Maxim said its sales and earnings would fall an unspecified amount from the second quarter. Gross margins are expected to hold steady in the current quarter. Analysts had predicted earnings of 40 cents a share and sales of $430 million.
Maxim predicted "solid income growth in fiscal year 2005 but below fiscal year 2004's growth rate of over 35%."
Maxim makes semiconductors used in industrial products and automobiles, as well as cell phones and personal computers.