Analog Devices Warns of Potential Loss

Analog Devices has issued a warning that it may face a loss in the fiscal second quarter due to a dip in earnings and revenue during the first quarter as customers scale back on their semiconductor inventories.

Financial Performance Overview

In the quarter ended Feb. 3, the chipmaker reported a profit of $462.7 million, or 93 cents a share, compared to $961.5 million, or $1.88 a share, in the same period last year. Adjusted earnings, excluding one-time items, stood at $1.73 per share, slightly beating analysts' expectations of $1.71 per share.

Despite a decline in overall revenue from $3.25 billion to $2.51 billion, Analog Devices managed to surpass analyst estimates of $2.5 billion.

Future Projections

For the upcoming fiscal second quarter, the company estimates a revenue drop to a range of $2 billion to $2.2 billion, falling short of analysts' projections of $2.36 billion. The forecast suggests a potential loss of 10 cents per share at the lower end, while the upper end anticipates earnings of 46 cents per share.

CEO Vincent Roche remains optimistic about the future, stating, "We anticipate customer inventory rationalization to diminish in our second quarter, setting the stage for a more favorable business environment in the latter half of the year."