Analog Devices Profit Falls; Sales Disappoint

Analog Devices Inc., a maker of chips for high-speed communications, reported a 74% drop in earnings for its fiscal fourth quarter and said profit and sales this quarter will miss forecasts as customers cut orders.

Shares of the Norwood, Mass.-based company slipped to as low as $39.75 in extended trading on the report, after closing off $1.80 at $42 on Nasdaq.

The company’s profit performance of $52.9 million, or 14 cents a share, beat analysts’ average estimate of 12 cents. But revenue, which fell 47% to $423.3 million, missed expectations of $432.8 million.

For the current quarter, Analog Devices expects earnings of about 11 cents on sales of $400 million, compared with analysts’ average estimate of a 15-cent profit on sales of $434 million.