NORWOOD, Mass. (AP) -- Chipmaker Analog Devices Inc. said its fiscal third-quarter profit fell 23 percent, hurt by double-digit revenue drops at three of its four business divisions, and issued weak guidance for the current quarter.
For the quarter ended Aug. 4, the Norwood, Mass.-based company said late Tuesday it earned $169.8 million, or 56 cents per share, down from $219.9 million, or 71 cents per share, in the same quarter last year.
Revenue fell 9.9 percent to $683 million from $757.9 million.
The profit matched Wall Street predictions, while the revenue fell slightly short. Analysts, on average, expected a profit of 56 cents per share on $691.2 million in revenue, according to a FactSet poll.
Industrial revenue fell 12 percent to $322.3 million, while consumer revenue dropped 19 percent to $108.9 million and communications revenue decreased 11 percent to $137.2 million. The company's automotive business was its lone bright spot, posting a 12 percent increase in revenue to $114.7 million.
Analog devices said it expects that its fiscal fourth-quarter revenue from industrial, communications and automotive end markets will be similar to that of the third quarter and in line with typical seasonal patterns.
But the company said it expects revenue from its consumer customers to be up from third-quarter levels, which is typical for the fourth quarter, but also as a result of demand for its new products.
As a result, Analog Devices said it expects its overall fourth-quarter revenue to total between $685 million and $715 million, below average analysts' predictions of $713.5 million. The company also projected a fourth-quarter profit of between 54 cents and 60 cents per share, while analysts expect 60 cents per share.
Sterne Agee analyst Vijay Rakesh backed his "Neutral" rating for Analog Devices, calling the third-quarter results "respectable" given the current economic climate.
But Citi analyst Terence Whalen backed his "Buy" rating for the company, saying that its next quarterly results could beat expectations if Apple Inc. decides to use a microphone developed by the company in the next version of its iPhone set to hit the market this fall.
Analog Devices also said late Tuesday that its board declared a dividend of 30 cents. The dividend will be paid on Sept. 12 to shareholders of record as of Aug. 31.
Shares of Analog Devices fell 45 cents to $39.89 in afternoon trading.
