By Dean Seal

Analog Devices is warning that it could record a loss in the fiscal second quarter after earnings and revenue fell in the first as customers continue to pull back on their semiconductor inventories.

The chipmaker posted a profit of $462.7 million, or 93 cents a share, in the quarter ended Feb. 3, down from $961.5 million, or $1.88 a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were $1.73 a share. Analysts surveyed by FactSet had been expecting $1.71 a share.

Revenue fell to $2.51 billion from $3.25 billion, but came in just above analyst estimates for $2.5 billion, according to FactSet.

The Wilmington, Mass.-based company is guiding for revenue to decline to between $2 billion and $2.2 billion in its fiscal second quarter, which is under analysts' current forecasts for $2.36 billion, according to FactSet.

The low end of the outlook includes a potential loss of 10 cents a share, on both an adjusted and unadjusted basis, while the upper end of the forecast calls for earnings of 46 cents a share and adjusted earnings of $1.26 a share. Analysts polled by FactSet had been expecting adjusted earnings of $1.56 a share.

"Consistent with our prior view, we expect customer inventory rationalization to largely subside in our second quarter, and thus enter the second half in a more favorable business backdrop," Chief Executive Vincent Roche said.

Write to Dean Seal at

(END) Dow Jones Newswires

02-21-24 0737ET