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Analog Devices net rises; outlook comes up short

NORWOOD, Mass. (AP) -- Chipmaker Analog Devices Inc.'s fiscal second-quarter net income edged higher on a tax benefit and rising sales in its automotive unit. Its outlook for the current period came in short of analyst estimates, however.

President and CEO Vincent Roche said orders were higher in the second quarter than in the first quarter, but customers remain cautious because of the uncertain global economy.

Analog's stock fell 94 cents, or 2 percent, to $45.62 in after-hours trading.

Analog Devices said Tuesday that it earned $164.5 million in the quarter that ended May 4, up 1 percent from $162.9 million in the same period last year. On a per-share basis, earnings slipped to 52 cents from 53 cents, because the company had more shares outstanding in this year's quarter.

Revenue fell 2 percent to $659.3 million.

Analysts expected earnings of 52 cents per share on revenue of $660.4 million.

For its fiscal third quarter, Analog said it expects earnings of 51 cents to 56 cents per share on revenue of $655 million to $685 million. Analyst had expected earnings of 57 cents per share on revenue of $688 million.

Roche said the company expects fatter profit margins as its factories run closer to capacity because of the bump in orders. Margin tracks how much of company's revenue it keeps as profit after costs.

The company also said its board authorized a dividend of 34 cents to be paid June 11 to shareholders of record May 31.